Free WorldatWork CECP Exam Questions

Become WorldatWork Certified with updated CECP exam questions and correct answers

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Total 101 Questions | Updated On: Nov 13, 2024

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Question 1

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

A : cause legal compliance with compensation-related regulations is the responsibility of the compensation department

B : cause the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

C : cause it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

D : ey shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Answer: B

Question 2

Gross margin is which of the following, as percent of revenue?

A : venue minus cost of goods sold

B : penses plus taxes and depreciation

C : oss profit minus expenses

D : t of goods sold

Answer: A

Question 3

Regarding fixed and variable costs, what are Finance's primary concerns?

A : xed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

B : riable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

C : xed costs and variable costs are equally important and both should be kept to a minimum.

D : xed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Answer: B

Question 4

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

A : ess a high level of education and competency in accounting principles

B : termine which programs are crucial to the enterprise and which programs are expendable

C : rtner with multiple departments and external consultants and vendors

D : monstrate broad understanding of principles of financial management and business expertise

Answer: D

Question 5

Which of the following is the most accurate statement about the business strategy?

A : usually is a secondary consideration in compensation design.

B : is the company's plan for competitive positioning of its products or services.

C : must be written after the company's operating plans are approved by senior management.

D : is developed for compensation, benefits and the work-life using the HR strategy as a basis.

Answer: B

Page: 1 / 21

Total 101 Questions | Updated On: Nov 13, 2024

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