Worldatwork CECP Exam Questions Instant Access

Question 1

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 2

What best defines the organization's purpose or reason for existence?

AThe corporate mission

BThe business strategy

CThe compensation strategy

DThe corporate vision

Answer : A

Question 3

What challenge is most likely faced by a business with low market share and high growth potential?

AIts ability to generate profits is unknown.

BIt is in the worst market position and has insufficient resources to continue operations.

CIt is unclear how to best utilize the high cash flow to sustain growth.

DIts excess resources are often used to develop other businesses that may not be mission-critical.

Answer : A

Question 4

Which of the following is a type of variable pay?

APay for time not worked

BHourly pay

CBonuses

DPiece rate

Answer : C

Question 5

An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?

AStart-up

BGrowth

CMature

DDecline

Answer : A

Question 6

What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?

ABusiness forecasting

BBusiness analytics

CPredictive modeling

DStatistical analysis

Answer : B

Question 7

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?

AMarch 1st

BMarch 31st

CApril 5th

DApril 8th

Answer : A

Worldatwork Certified Executive Compensation Professional CECP Exam Questions