Worldatwork CECP Exam Questions Instant Access

Question 1

''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 2

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

AIt remains the same.

BIt decreases because variable costs are increasing.

CIt increases at the same rate as variable costs.

DIt becomes increasingly higher as revenues increase.

Answer : D

Question 3

What best describes the compensation philosophy?

AThe compensation committee's interpretation of how employees can best meet business objectives

BGuidelines that determine the administration of compensation programs

CStatement of what the organization believes about how people should be paid

DPrinciples that guide the design of compensation programs

Answer : C

Question 4

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

Question 5

Which of the following statements is most accurate regarding pay grades/bands?

AThey include incentives that are paid out at certain times of the year

BThey identify the actual compensation paid to each employee

CThey may overlap with minimums and maximums falling within adjoining grades

DThey represent the difference between the midpoint and the maximum of a given salary grade

Answer : C

Question 6

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 7

What most accurately describes a reason why organizations use financial reports?

ATo differentiate company financial data from industry competitors to prevent loss of proprietary information

BTo provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities

CTo create a historical record of financial performance and identify trends that may justify changes in strategy

DTo promote consistency of communication regarding company performance and value

Answer : D

Worldatwork Certified Executive Compensation Professional CECP Exam Questions