Worldatwork CECP Exam Questions Instant Access

Question 1

Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?

AMission

BVision

CValues

DStrategy

Answer : C

Question 2

To ensure appropriate funding levels, the compensation professional must generally do which of the following?

APossess a high level of education and competency in accounting principles

BDetermine which programs are crucial to the enterprise and which programs are expendable

CPartner with multiple departments and external consultants and vendors

DDemonstrate broad understanding of principles of financial management and business expertise

Answer : D

Question 3

What do profits, equity and debt all have in common?

AThey are all reported on the balance sheet.

BThey are all sources of capital.

CThey all incur the same costs to the business.

DNothing. Each of these is a different financial metric.

Answer : B

Question 4

Regarding fixed and variable costs, what tends to happen as revenue increases?

AVariable costs decrease

BFixed costs decrease

CVariable costs increase and consume a higher percent of revenue

DFixed costs remain the same and consume a lower percent of revenue

Answer : D

Question 5

What do working capital metrics evaluate?

AThe change in working capital over a specific period of time, typically one year

BA company's efficiency in converting short-term capital into cash

CA company's mean capital expenditure per employee

DThe amount of cash needed to meet the company's short-term obligations

Answer : B

Question 6

Administering budgets is an example of what key competency for compensation professionals?

AFinancial Management

BHR Management

CResource Management

DPolicy Management

Answer : A

Question 7

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

Worldatwork Certified Executive Compensation Professional CECP Exam Questions