Worldatwork CECP Exam Practice Test Instant Access

Question 1

Which of the following are the two primary elements of benefits?

AMental health coverage and health care coverage

BPay for time not worked and income protection programs

CUnemployment and disability

DDefined contribution and defined benefits plans

Answer : B

Question 2

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

AIt remains the same.

BIt decreases because variable costs are increasing.

CIt increases at the same rate as variable costs.

DIt becomes increasingly higher as revenues increase.

Answer : D

Question 3

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

ACompensation costs eventually stabilize and become a consistent percent of revenue.

BCompensation costs and revenue increase at approximately the same rate.

CCompensation costs eventually decrease as a percent of revenue, increasing profit growth.

DCompensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.

Answer : C

Question 4

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

AVariable costs decrease

BFixed costs decrease

CVariable costs increase and consume a higher percent of revenue

DFixed costs remain the same and consume a lower percent of revenue

Answer : D

Question 5

Which of the following is the best example of a variable cost?

AAudit fees

BRent

CMaintenance

DShipping

Answer : D

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