Free WorldatWork Other Certification CECP Ultimate Study Guide (Updated 99 Questions)
Get to the Top with CECP Practice Exam Questions
NEW QUESTION 20
Which of the following is a type of variable pay?
- A. Piece rate
- B. Bonuses
- C. Hourly pay
- D. Pay for time not worked
Answer: B
NEW QUESTION 21
What best defines the organization's purpose or reason for existence?
- A. The compensation strategy
- B. The corporate mission
- C. The business strategy
- D. The corporate vision
Answer: B
NEW QUESTION 22
What is the most common term for the broad framework of principles and approaches that guide day-to-day decisions affecting the business, including how it positions itself in the market?
- A. The business plan
- B. The competitive strategy
- C. The mission statement
- D. The corporate objective
Answer: B
NEW QUESTION 23
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 5th
- C. March 1st
- D. April 8th
Answer: C
NEW QUESTION 24
What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?
- A. Variable pay costs as a percent of total compensation
- B. Total compensation expense for the business, including base pay and variable pay
- C. Reward costs as a percent of total operating costs
- D. The organization's market compa-ratio
Answer: C
NEW QUESTION 25
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. Evaluating prior year performance for the narrative portion of annual financial reports
- D. Pricing your products appropriately
Answer: A
NEW QUESTION 26
What best describes the two primary elements of compensation?
- A. Direct and indirect compensation
- B. Fixed pay and variable pay
- C. Salary and hourly rate
- D. Base pay and annual incentives
Answer: B
NEW QUESTION 27
The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?
- A. Earnings
- B. Market capitalization
- C. Shares
- D. Increased market value and reinvested dividends paid
Answer: D
NEW QUESTION 28
What challenge is most likely faced by a business with low market share and high growth potential?
- A. Its excess resources are often used to develop other businesses that may not be mission-critical.
- B. It is unclear how to best utilize the high cash flow to sustain growth.
- C. It is in the worst market position and has insufficient resources to continue operations.
- D. Its ability to generate profits is unknown.
Answer: D
NEW QUESTION 29
Which of the following is the best example of a variable cost?
- A. Rent
- B. Audit fees
- C. Maintenance
- D. Shipping
Answer: D
NEW QUESTION 30
Gross margin is which of the following, as percent of revenue?
- A. Revenue minus cost of goods sold
- B. Cost of goods sold
- C. Gross profit minus expenses
- D. Expenses plus taxes and depreciation
Answer: A
NEW QUESTION 31
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. Growth
- B. Decline
- C. Start-up
- D. Mature
Answer: D
NEW QUESTION 32
Using efficient and cost-effective approaches to integrate technology into the workplace is an example of what key competency for compensation professionals?
- A. Resource Management
- B. Financial Management
- C. HR Management
- D. Policy Management
Answer: A
NEW QUESTION 33
The XYZ Company produces innovative products and brings them to market in advance of their competitors. What strategy is XYZ using?
- A. Operational excellence
- B. Product/service leadership
- C. Customer intimacy
- D. Brand loyalty
Answer: B
NEW QUESTION 34
Which of the following is a true statement regarding the talent development needs of employees?
- A. If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.
- B. Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.
- C. Obtaining and developing skills provides leverage for the employee to seek more compensation.
Answer: B
NEW QUESTION 35
When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?
- A. Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives
- B. Individuals with power in the organization who have the authority to overrule the concerns of opponents
- C. No one person. Identify your stakeholders and work to achieve consensus among the majority.
- D. The most senior leader with the highest level of authority
Answer: A
NEW QUESTION 36
Internal process metrics are most useful in which of the following situations?
- A. Evaluating customer perceptions of products or services
- B. Measuring the financial success of the business
- C. Determining employee satisfaction levels
- D. Assessing how well the business is running
Answer: D
NEW QUESTION 37
Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?
- A. Vision
- B. Strategy
- C. Values
- D. Mission
Answer: C
NEW QUESTION 38
A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations. What strategy is this company using?
- A. Operational excellence
- B. Product/service leadership
- C. Customer intimacy
- D. Brand loyalty
Answer: C
NEW QUESTION 39
What is the most accurate statement regarding the effect of compensation plans on the organization?
- A. They have very little effect as long as they are managed effectively and efficiently
- B. They affect the organization's overall financial status and impact multiple stakeholders across most, if not all, business units
- C. Their success or failure is closely tied to the success or failure of organizationwide goals and objectives
- D. They typically have the greatest effect on net income and operating results of any organizational expense or program
Answer: B
NEW QUESTION 40
What best describes what forecasting helps the organization to do?
- A. Prepare quarterly and annual reports and their associated statements
- B. Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
- C. Recognize possible issues and concerns that will drive budget planning
- D. Withhold payroll taxes for all elements of compensation
Answer: C
NEW QUESTION 41
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