Worldatwork c8 Exam Questions Instant Access

Question 1

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

Question 2

''Cost-benefit thinking'' is most useful in the context of financial management for purposes of what?

AProcurement

BRecruiting

CSetting priorities

DPlan administration

Answer : C

Question 3

The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

A500,000

B840,000

C8,000,000

D9,700,000

Answer : D

Question 4

What is the most likely explanation for why compensation and rewards require a strong grasp of business acumen for compensation professionals?

ABecause the internal and external environments are constantly changing

BBecause the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

CBecause they are emotional issues and stakeholders have many vested interests

DBecause strong business acumen is required for all compensation decisions

Answer : C

Question 5

Using efficient and cost-effective approaches to integrate technology into the workplace is an example of what key competency for compensation professionals?

AFinancial Management

BHR Management

CResource Management

DPolicy Management

Answer : C

Question 6

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

ABecause legal compliance with compensation-related regulations is the responsibility of the compensation department

BBecause the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

CBecause it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

DThey shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Answer : B

Question 7

What question is answered by the organization's mission statement?

AWhat direction will we take?

BHow do we work?

CWhy are we in business?

DHow will we achieve our objectives?

Answer : C

Worldatwork Business Acumen for Compensation Professional c8 Exam Questions