Updated PDF (New 2022) Actual WorldatWork CECP Exam Questions
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NEW QUESTION 55
Who are you most likely to hear from if there are questions about an employee's compensation?
- A. The employee
- B. A concerned co-worker
- C. The employee's department head
- D. The employee's manager
Answer: D
NEW QUESTION 56
Understanding basic organization design principles is an example of what key competency for compensation professionals?
- A. Resource Management
- B. HR Management
- C. Policy Management
- D. Financial Management
Answer: B
NEW QUESTION 57
How is the performance review related to pay?
- A. It is related to the extent that it affects variable pay awards. Base pay is based solely on tenure, prior experience and job skills.
- B. It helps managers meet salary budgets by allowing them to adjust review results to align with available salary increase funds.
- C. It isn't. The performance review should not be related to pay decisions.
- D. It provides managers a measure that can be used along with salary planning guidelines to determine appropriate rewards or consequences.
Answer: D
NEW QUESTION 58
The Alpha company ships an order to a customer on March 1st and invoices the customer for the product with the shipment, with payment terms of net 30 days. The customer's payment is received on April 5th. The payment clears the bank and shows on Alpha's account on April 8th. If Alpha is using accrual accounting, when does it record the revenue for this sale?
- A. April 5th
- B. April 8th
- C. March 1st
- D. March 31st
Answer: C
NEW QUESTION 59
How are the compensation communication needs of managers different from those of individual employees?
- A. They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
- B. They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.
- C. They are also responsible for merit increases, incentives and hiring so they have greater information needs.
- D. They aren't. Managers are concerned about their compensation also.
Answer: C
NEW QUESTION 60
What best describes the most effective tactic for getting stakeholders' attention and buy-in?
- A. Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern
- B. Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections
- C. Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position
- D. Ask them to review or provide feedback, especially on something you have done for them
Answer: D
NEW QUESTION 61
Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?
- A. Improve program efficacy
- B. Reduce compensation expense
- C. Select the best vendors
- D. Compensate employees competitively
Answer: A
NEW QUESTION 62
In what stage of the business lifecycle do companies typically begin standardizing procedures through policy creation?
- A. Decline
- B. Start-up
- C. Growth
- D. Mature
Answer: C
NEW QUESTION 63
Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?
- A. The cash flow statement, along with the balance sheet and income statement
- B. The income statement
- C. The cash flow statement and the income statement
- D. The balance sheet
Answer: A
NEW QUESTION 64
The "Value Store" retail company offers its customers low prices and ease of purchase by minimizing waste and striving for high efficiency. What strategy is the "Value Store" using?
- A. Operational excellence
- B. Customer intimacy
- C. Brand loyalty
- D. Product/service leadership
Answer: A
NEW QUESTION 65
What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?
- A. Automatic
- B. Merit
- C. Cost of living
- D. General
Answer: D
NEW QUESTION 66
What best defines the organization's purpose or reason for existence?
- A. The corporate vision
- B. The corporate mission
- C. The business strategy
- D. The compensation strategy
Answer: B
NEW QUESTION 67
Which type of variable pay is best described by this statement: Criteria are discretionary and often defined in broad terms such as "exceptional customer service"?
- A. Commission
- B. Bonus
- C. Profit-sharing
- D. Recognition
Answer: D
NEW QUESTION 68
What is the most accurate statement regarding forecasting?
- A. It is a precise estimate of what the future holds for the organization.
- B. It is done primarily by evaluating market conditions and economic indicators.
- C. It uses internal and external factors to help answer questions about business expectations for the future.
- D. It is done primarily by using historical revenue and expense data.
Answer: C
NEW QUESTION 69
Which of the following are the two primary elements of benefits?
- A. Unemployment and disability
- B. Mental health coverage and health care coverage
- C. Defined contribution and defined benefits plans
- D. Pay for time not worked and income protection programs
Answer: D
NEW QUESTION 70
What best describes a benefit of business executive with regard to career development?
- A. It is critical to your career development and a deficiency is very likely to hinder career advancement and success.
- B. The ability to display confidence and decisiveness that will inspire others and make you a better leader
- C. Increased marketability, which will lead to qualification for opportunities outside of human resources
- D. A greater likelihood of promotion, especially when you are competing with individuals with more experience
Answer: B
NEW QUESTION 71
If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?
- A. Compensation costs and revenue increase at approximately the same rate.
- B. Compensation costs eventually decrease as a percent of revenue, increasing profit growth.
- C. Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
- D. Compensation costs eventually stabilize and become a consistent percent of revenue.
Answer: B
NEW QUESTION 72
Which of the following is the best definition of variable pay?
- A. Compensation that is nondiscretionary and does not vary according to performance or results
- B. Compensation that is contingent on discretion, performance or results
- C. Compensation that is determined by the organization's pay structure
- D. Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.
Answer: B
NEW QUESTION 73
Which of the following is a true statement regarding the talent development needs of employees?
- A. Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.
- B. Obtaining and developing skills provides leverage for the employee to seek more compensation.
- C. If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.
Answer: A
NEW QUESTION 74
What challenge is most likely faced by a business with low market share and high growth potential?
- A. It is unclear how to best utilize the high cash flow to sustain growth.
- B. Its excess resources are often used to develop other businesses that may not be mission-critical.
- C. Its ability to generate profits is unknown.
- D. It is in the worst market position and has insufficient resources to continue operations.
Answer: C
NEW QUESTION 75
What best describes a use of strategic analysis?
- A. Understanding your business and its competitive strengths and weaknesses
- B. Pricing your products appropriately
- C. Evaluating prior year performance for the narrative portion of annual financial reports
- D. Forecasting profit, growth and investment performance to develop realistic budgets
Answer: A
NEW QUESTION 76
If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?
- A. 100% variable pay to motivate all employees to maximize productivity and sales
- B. A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits
- C. 90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions
- D. High base pay and low variable pay to ensure predictability of total compensation expense
Answer: B
NEW QUESTION 77
Administering budgets is an example of what key competency for compensation professionals?
- A. Resource Management
- B. Financial Management
- C. Policy Management
- D. HR Management
Answer: B
NEW QUESTION 78
What do profits, equity and debt all have in common?
- A. Nothing. Each of these is a different financial metric.
- B. They all incur the same costs to the business.
- C. They are all reported on the balance sheet.
- D. They are all sources of capital.
Answer: D
NEW QUESTION 79
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