Worldatwork CECP Exam Practice Test Instant Access

Question 1

What is a primary purpose of pay grades or bands?

ATo identify a compensation range in which to group multiple jobs with similar value

BTo meet legal and regulatory requirements for classifying jobs according to market value

CTo provide documentation that supports termination decisions

DTo justify paying some employees less than market based on internal administrative limitations

Answer : A

Question 2

Which of the following is primarily focused on giving special attention to employee actions, efforts, behavior or performance?

ACompensation

BBenefits

CCareer opportunities

DRecognition

Answer : D

Question 3

Regarding presentations to executives, which of the following is most accurate?

AKeep them brief

BUse multiple media

CInclude all details related to the issue

DLeave backup data out of the presentation so there is time to develop an effective response to unexpected questions

Answer : A

Question 4

What best describes an effective core technique for communicating with executives?

AFocus on negative issues first, such as compensation costs exceeding budget, to get their attention

BProvide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

CAssume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

DRecommend a solution that will solve the issue and explain why it is the best solution available.

Answer : D

Question 5

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

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

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

CFixed costs and variable costs are equally important and both should be kept to a minimum.

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

Answer : B

Question 6

What best describes a use of strategic analysis?

APricing your products appropriately

BUnderstanding your business and its competitive strengths and weaknesses

CForecasting profit, growth and investment performance to develop realistic budgets

DEvaluating prior year performance for the narrative portion of annual financial reports

Answer : B

Question 7

What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?

ABusiness forecasting

BBusiness analytics

CPredictive modeling

DStatistical analysis

Answer : B

Worldatwork CECP Certified Executive Compensation Professional Exam Practice Test