Updated Free WorldatWork CECP Test Engine Questions with 99 Q&As
The Best WorldatWork Other Certification CECP Professional Exam Questions
NEW QUESTION 52
Which of the following is a true statement regarding the talent development needs of employees?
- A. Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.
- B. Obtaining and developing skills provides leverage for the employee to seek more compensation.
- C. If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.
Answer: A
NEW QUESTION 53
Which of the following is the best definition of variable pay?
- A. Compensation that is contingent on discretion, performance or results
- B. Compensation that is determined by the organization's pay structure
- C. Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.
- D. Compensation that is nondiscretionary and does not vary according to performance or results
Answer: A
NEW QUESTION 54
What best describes a benefit of business executive with regard to career development?
- A. Increased marketability, which will lead to qualification for opportunities outside of human resources
- B. A greater likelihood of promotion, especially when you are competing with individuals with more experience
- C. It is critical to your career development and a deficiency is very likely to hinder career advancement and success.
- D. The ability to display confidence and decisiveness that will inspire others and make you a better leader
Answer: D
NEW QUESTION 55
Why are lump-sum increases generally used?
- A. To make up for benefits not provided by the organization
- B. To elevate employees who are below the midpoint in the range
- C. To control annual fixed costs from base pay adjustments
- D. To reward employees under short-term incentive plans
Answer: C
NEW QUESTION 56
When connecting with other business units, what best describes a reason why is it important to keep up to date on organizational challenges?
- A. Because you will be more informed when differences of opinion occur, lending more credibility to your position
- B. Because you can demonstrate your understanding of issues from multiple perspectives
- C. Because you will be able to explain the negative consequences of opposing your position
- D. Because stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses
Answer: B
NEW QUESTION 57
Which of the following is the best example of a variable cost?
- A. Audit fees
- B. Shipping
- C. Rent
- D. Maintenance
Answer: B
NEW QUESTION 58
An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?
- A. Decline
- B. Growth
- C. Mature
- D. Start-up
Answer: D
NEW QUESTION 59
What is the most accurate statement regarding the effect of compensation plans on the organization?
- A. They typically have the greatest effect on net income and operating results of any organizational expense or program
- B. They affect the organization's overall financial status and impact multiple stakeholders across most, if not all, business units
- C. They have very little effect as long as they are managed effectively and efficiently
- D. Their success or failure is closely tied to the success or failure of organizationwide goals and objectives
Answer: B
NEW QUESTION 60
What best describes the compensation philosophy?
- A. Principles that guide the design of compensation programs
- B. Guidelines that determine the administration of compensation programs
- C. Statement of what the organization believes about how people should be paid
- D. The compensation committee's interpretation of how employees can best meet business objectives
Answer: C
NEW QUESTION 61
What best describes the most effective tactic for getting stakeholders' attention and buy-in?
- A. Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position
- B. Ask them to review or provide feedback, especially on something you have done for them
- C. Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections
- D. Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern
Answer: B
NEW QUESTION 62
Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?
- A. Mission
- B. Values
- C. Vision
- D. Strategy
Answer: B
NEW QUESTION 63
If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?
- A. A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits
- B. High base pay and low variable pay to ensure predictability of total compensation expense
- C. 90/10 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
- D. 100% variable pay to motivate all employees to maximize productivity and sales
Answer: A
NEW QUESTION 64
Internal process metrics are most useful in which of the following situations?
- A. Assessing how well the business is running
- B. Measuring the financial success of the business
- C. Evaluating customer perceptions of products or services
- D. Determining employee satisfaction levels
Answer: A
NEW QUESTION 65
Who are you most likely to hear from if there are questions about an employee's compensation?
- A. The employee's department head
- B. The employee's manager
- C. The employee
- D. A concerned co-worker
Answer: B
NEW QUESTION 66
Which of the following factors has the greatest impact on how aggressive a stance (high vs. low) an organization will take in terms of where it positions itself against the market with its compensation strategy?
- A. The industry it operates in
- B. The organizational headcount
- C. The bottom line
- D. The risk tolerance of compensation leaders
Answer: C
NEW QUESTION 67
What is the most accurate definition of organizational vision?
- A. A detailed account of the organization's goals, directions to achieve them and how it will compete
- B. A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders
- C. A written explanation of the intention or purpose of the organization and why it is in business
- D. A description of who the organization is, where it is headed and what it wants for the future
Answer: D
NEW QUESTION 68
Which of the following is the best example of applying business executive to data analysis?
- A. Providing quarterly incentive estimates for accruals
- B. Reviewing historical trends to complete annual budgets
- C. Identifying trends and key messages emerging over time
- D. Compiling data needed to calculate salary budgets and merit increases
Answer: C
NEW QUESTION 69
Which of the following is the earnings available to equity owners after paying debt and taxes?
- A. Operating profit
- B. EPS
- C. Net income
- D. EBIT
Answer: C
NEW QUESTION 70
How do commissions typically differ from annual incentives for non-executive employees?
- A. They are intended to align the interests of the employee with those of the organization.
- B. They tend to make up the larger portion of an employee's total compensation.
- C. They are offered to motivate employee performance.
- D. They are based on a predetermined performance and reward schedule.
Answer: B
NEW QUESTION 71
Which type of variable pay is best described by this statement: Criteria are discretionary and often defined in broad terms such as "exceptional customer service"?
- A. Commission
- B. Profit-sharing
- C. Recognition
- D. Bonus
Answer: C
NEW QUESTION 72
Information on the annual report shows results for what time period?
- A. The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company
- B. The fiscal year, which matches the calendar year from January 1 to December 31
- C. The calendar year from January 1 to December 31
- D. The fiscal year, which shows results from July 1 to June 30
Answer: A
NEW QUESTION 73
The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?
- A. Market capitalization
- B. Earnings
- C. Increased market value and reinvested dividends paid
- D. Shares
Answer: C
NEW QUESTION 74
What best describes the primary purpose of budgeting?
- A. Increasing profitability of the business annually to maximize shareholder/owner value
- B. Limiting spending to a fixed percentage of organizational revenue
- C. Making choices about spending based on expectations of performance
- D. Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
Answer: C
NEW QUESTION 75
The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary. What stage of the business lifecycle is XYZ most likely in?
- A. Decline
- B. Start-up
- C. Growth
- D. Mature
Answer: D
NEW QUESTION 76
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