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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What is the minimum age for an individual to qualify for protection under the Age Discrimination in Employment Act?

A) 45
B) 40
C) 50
D) 55

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

A) Cost of goods sold
B) Expenses plus taxes and depreciation
C) Gross profit minus expenses
D) Revenue minus cost of goods sold

3. How are the compensation communication needs of managers different from those of individual employees?

A) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.
B) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
C) They aren't. Managers are concerned about their compensation also.
D) They are also responsible for merit increases, incentives and hiring so they have greater information needs.

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

A) Fixed costs decrease
B) Variable costs decrease
C) Fixed costs remain the same and consume a lower percent of revenue
D) Variable costs increase and consume a higher percent of revenue

5. Which of the following is an example of a reasonable accommodation?

A) Creating a separate area for the disabled employee to work
B) Job restructuring
C) Providing a pre-employment medical exam
D) Creating a new position in the company

Solutions: