[Jan 22, 2022] Fully Updated WorldatWork Other Certification (CECP) Certification Sample Questions
Latest WorldatWork CECP Real Exam Dumps PDF
NEW QUESTION 20
The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?
- A. Earnings
- B. Increased market value and reinvested dividends paid
- C. Market capitalization
- D. Shares
Answer: B
NEW QUESTION 21
What most accurately describes a reason why organizations use financial reports?
- A. To create a historical record of financial performance and identify trends that may justify changes in strategy
- B. To differentiate company financial data from industry competitors to prevent loss of proprietary information
- C. To promote consistency of communication regarding company performance and value
- D. To provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities
Answer: C
NEW QUESTION 22
What is the most accurate statement regarding forecasting?
- A. It uses internal and external factors to help answer questions about business expectations for the future.
- B. It is done primarily by using historical revenue and expense data.
- C. It is done primarily by evaluating market conditions and economic indicators.
- D. It is a precise estimate of what the future holds for the organization.
Answer: A
NEW QUESTION 23
What statement is most accurate regarding compensation communications with employees at varying levels?
- A. They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.
- B. They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.
- C. They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.
- D. They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.
Answer: A
NEW QUESTION 24
What statement is most accurate regarding communication of compensation information?
- A. The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.
- B. Compensation terms are well-known and easily understood by most stakeholders.
- C. Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.
- D. Compensation professionals should anticipate the level of the audience and tailor messages to their needs.
Answer: D
NEW QUESTION 25
Which of the following is the most accurate statement about the business strategy?
- A. It is developed for compensation, benefits and the work-life using the HR strategy as a basis.
- B. It usually is a secondary consideration in compensation design.
- C. It must be written after the company's operating plans are approved by senior management.
- D. It is the company's plan for competitive positioning of its products or services.
Answer: D
NEW QUESTION 26
Internal process metrics are most useful in which of the following situations?
- A. Evaluating customer perceptions of products or services
- B. Assessing how well the business is running
- C. Measuring the financial success of the business
- D. Determining employee satisfaction levels
Answer: B
NEW QUESTION 27
What best describes a use of strategic analysis?
- A. Understanding your business and its competitive strengths and weaknesses
- B. Forecasting profit, growth and investment performance to develop realistic budgets
- C. Pricing your products appropriately
- D. Evaluating prior year performance for the narrative portion of annual financial reports
Answer: A
NEW QUESTION 28
If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?
- A. Compensation costs eventually stabilize and become a consistent percent of revenue.
- B. Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
- C. Compensation costs and revenue increase at approximately the same rate.
- D. Compensation costs eventually decrease as a percent of revenue, increasing profit growth.
Answer: D
NEW QUESTION 29
What is the most accurate definition of organizational vision?
- A. A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders
- B. A detailed account of the organization's goals, directions to achieve them and how it will compete
- 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 30
Which of the following is a type of variable pay?
- A. Pay for time not worked
- B. Hourly pay
- C. Piece rate
- D. Bonuses
Answer: D
NEW QUESTION 31
Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?
- A. The income statement
- B. The cash flow statement and the income statement
- C. The cash flow statement, along with the balance sheet and income statement
- D. The balance sheet
Answer: C
NEW QUESTION 32
What is a primary objective of profit-sharing and performance-sharing variable pay plans?
- A. To increase employee identification with the organization's success
- B. To achieve organizational cost savings through base pay reductions
- C. To reward individual employees for some significant contribution
- D. To defer compensation expenses to future reporting periods
Answer: A
NEW QUESTION 33
Cash compensation is a reward intended to provide what type of motivation?
- A. Extrinsic
- B. Intrinsic
Answer: A
NEW QUESTION 34
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 able to explain the negative consequences of opposing your position
- B. Because you will be more informed when differences of opinion occur, lending more credibility to your position
- C. Because stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses
- D. Because you can demonstrate your understanding of issues from multiple perspectives
Answer: D
NEW QUESTION 35
What challenge is most likely faced by a business with low market share and high growth potential?
- A. It is in the worst market position and has insufficient resources to continue operations.
- B. Its excess resources are often used to develop other businesses that may not be mission-critical.
- C. Its ability to generate profits is unknown.
- D. It is unclear how to best utilize the high cash flow to sustain growth.
Answer: C
NEW QUESTION 36
What best defines the organization's purpose or reason for existence?
- A. The business strategy
- B. The compensation strategy
- C. The corporate mission
- D. The corporate vision
Answer: C
NEW QUESTION 37
The Alpha company ships an order to a customer on March 1st and invoices the customer for the product with the shipment, with payment terms of net 30 days. The customer's payment is received on April 5th. The payment clears the bank and shows on Alpha's account on April 8th. If Alpha is using accrual accounting, when does it record the revenue for this sale?
- A. March 31st
- B. April 8th
- C. April 5th
- D. March 1st
Answer: D
NEW QUESTION 38
Which of the following is a type of variable pay?
- A. Piece rate
- B. Commissions
- C. Hourly rate
- D. Salary
Answer: B
NEW QUESTION 39
What best describes the most effective approach for facilitating fact-based decisions?
- A. Ensuring support from all internal and external stakeholders
- B. Determining, sourcing and collecting appropriate data
- C. Estimating results based on historical data
- D. Using statistical methods to predict outcomes
Answer: B
NEW QUESTION 40
Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?
- A. Compensate employees competitively
- B. Improve program efficacy
- C. Reduce compensation expense
- D. Select the best vendors
Answer: B
NEW QUESTION 41
What best describes the primary purpose of budgeting?
- A. Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
- B. Making choices about spending based on expectations of performance
- C. Increasing profitability of the business annually to maximize shareholder/owner value
- D. Limiting spending to a fixed percentage of organizational revenue
Answer: B
NEW QUESTION 42
What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?
- A. Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking
- B. Giving priority to perspectives based on the job or influence level of the stakeholders
- C. Being firm and uncompromising in your decision-making
- D. Representing your view with data and relating it to business results
Answer: D
NEW QUESTION 43
Which of the following are the two primary elements of benefits?
- A. Pay for time not worked and income protection programs
- B. Unemployment and disability
- C. Defined contribution and defined benefits plans
- D. Mental health coverage and health care coverage
Answer: A
NEW QUESTION 44
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