Worldatwork CECP Exam Practice Test Instant Access

Question 1

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

AA varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

B100% variable pay to motivate all employees to maximize productivity and sales

C90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions

DHigh base pay and low variable pay to ensure predictability of total compensation expense

Answer : A

Question 2

What is the top line or starting point of an organization's income?

AGross profit

BRevenue

CNet income

DOperating profit

Answer : B

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

What is the most accurate statement regarding the effect of compensation plans on the organization?

AThey typically have the greatest effect on net income and operating results of any organizational expense or program

BTheir success or failure is closely tied to the success or failure of organizationwide goals and objectives

CThey have very little effect as long as they are managed effectively and efficiently

DThey affect the organization's overall financial status and impact multiple stakeholders across most, if not all, business units

Answer : D

Question 5

Which of the following are the two primary elements of benefits?

AMental health coverage and health care coverage

BPay for time not worked and income protection programs

CUnemployment and disability

DDefined contribution and defined benefits plans

Answer : B

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 best describes a necessary skill and/or behavior in relation to business executive?

AAn understanding of the culture and subcultures of your organization

BThe capacity to manage multiple projects and priorities and meet deadlines

CA willingness to take on additional duties and responsibilities when resources are limited

DA thorough understanding of the products and/or services your organization provides

Answer : A

Worldatwork Certified Executive Compensation Professional CECP Exam Practice Test