Worldatwork CECP Exam Questions Instant Access

Question 1

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 2

What best describes a use of strategic analysis?

APricing your products appropriately

BUnderstanding your business and its competitive strengths and weaknesses

CForecasting profit, growth and investment performance to develop realistic budgets

DEvaluating prior year performance for the narrative portion of annual financial reports

Answer : B

Question 3

Which of the following is the best example of applying business executive to data analysis?

ACompiling data needed to calculate salary budgets and merit increases

BIdentifying trends and key messages emerging over time

CReviewing historical trends to complete annual budgets

DProviding quarterly incentive estimates for accruals

Answer : B

Question 4

How do quarterly reports most commonly compare to the annual report?

AThe cumulative information on the four quarterly reports adds up to the information on the annual report.

BThe quarterly reports are more detailed. The annual report provides similar data in summary form.

CThe annual report is required and the quarterly reports, while commonly used, are optional.

DThe quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

Answer : D

Question 5

What best describes what forecasting helps the organization to do?

ARecognize possible issues and concerns that will drive budget planning

BPrepare quarterly and annual reports and their associated statements

CWithhold payroll taxes for all elements of compensation

DAnticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle

Answer : A

Question 6

What is the most common term for the broad framework of principles and approaches that guide day-to-day decisions affecting the business, including how it positions itself in the market?

AThe business plan

BThe corporate objective

CThe mission statement

DThe competitive strategy

Answer : D

Question 7

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

Worldatwork Certified Executive Compensation Professional CECP Exam Questions