Worldatwork CECP Exam Practice Test 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

What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?

ABeing firm and uncompromising in your decision-making

BRepresenting your view with data and relating it to business results

CFinding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking

DGiving priority to perspectives based on the job or influence level of the stakeholders

Answer : B

Question 3

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

Question 4

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 5

Which of the following is the best example of a variable cost?

AAudit fees

BRent

CMaintenance

DShipping

Answer : D

Question 6

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 7

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

Worldatwork Certified Executive Compensation Professional CECP Exam Practice Test