Worldatwork c8 60 Exam Practice Test Instant Access

Question 1

Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?

AProduction worker

BAccount executive

CIT contractor

DHR Director

Answer : D

Question 2

How do quarterly reports most commonly compare to the annual report?

AThe cumulative information on the four quarterly reports adds up to the information on the annual report.

BThe quarterly reports are more detailed. The annual report provides similar data in summary form.

CThe annual report is required and the quarterly reports, while commonly used, are optional.

DThe quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

Answer : D

Question 3

Quarterly financial reports typically include data for a given quarter compared to what?

AThe previous quarter

BThe budget

CThe same quarter in the previous year, plus the current six-month or nine-month cumulative comparables

DThe aggregate performance of the same quarter in the previous three years

Answer : C

Question 4

Information on the annual report shows results for what time period?

AThe calendar year from January 1 to December 31

BThe fiscal year, which matches the calendar year from January 1 to December 31

CThe fiscal year, which shows results from July 1 to June 30

DThe fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company

Answer : D

Question 5

What most accurately describes a reason why organizations use financial reports?

ATo differentiate company financial data from industry competitors to prevent loss of proprietary information

BTo provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities

CTo create a historical record of financial performance and identify trends that may justify changes in strategy

DTo promote consistency of communication regarding company performance and value

Answer : D

Question 6

What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?

AVariable pay costs as a percent of total compensation

BTotal compensation expense for the business, including base pay and variable pay

CReward costs as a percent of total operating costs

DThe organization's market compa-ratio

Answer : C

Question 7

In what stage of the business lifecycle do companies typically begin standardizing procedures through policy creation?

AStart-up

BGrowth

CMature

DDecline

Answer : B

Worldatwork c8 Business Acumen for Compensation Professional 60 Exam Practice Test