Worldatwork c8 60 Exam Practice Test Instant Access

Question 1

What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?

AVariable pay costs as a percent of total compensation

BTotal compensation expense for the business, including base pay and variable pay

CReward costs as a percent of total operating costs

DThe organization's market compa-ratio

Answer : C

Question 2

Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?

AThe level of formal education in each area

BThe ability to prioritize which is most critical in any given situation and allocate time and resources accordingly

CThe ability to tie them together, distill key messages and make impactful decisions

DEffective interpersonal and communication skills that can overshadow minor deficiencies in any one area

Answer : C

Question 3

What best describes the primary purpose of budgeting?

ALimiting spending to a fixed percentage of organizational revenue

BMaking choices about spending based on expectations of performance

CIncreasing profitability of the business annually to maximize shareholder/owner value

DComplying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Answer : B

Question 4

What best describes a benefit of business acumen with regard to career development?

AThe ability to display confidence and decisiveness that will inspire others and make you a better leader

BA greater likelihood of promotion, especially when you are competing with individuals with more experience

CIncreased marketability, which will lead to qualification for opportunities outside of human resources

DIt is critical to your career development and a deficiency is very likely to hinder career advancement and success.

Answer : A

Question 5

The ''return'' represented by the Total Shareholder Return (TSR) metric is the increase in what?

AEarnings

BShares

CMarket capitalization

DIncreased market value and reinvested dividends paid

Answer : D

Question 6

What do working capital metrics evaluate?

AThe change in working capital over a specific period of time, typically one year

BA company's efficiency in converting short-term capital into cash

CA company's mean capital expenditure per employee

DThe amount of cash needed to meet the company's short-term obligations

Answer : B

Question 7

What best describes a key competency of compensation professionals regarding HR management of the organization's employees?

AEnsuring they are appropriately selected, developed, appraised and rewarded

BMonitoring individual employee career paths and succession planning

CCommunicating regularly with line management on performance management

DEnsuring that all regulatory and voluntary payroll deductions are properly administered

Answer : A

Worldatwork c8 Business Acumen for Compensation Professional 60 Exam Practice Test