Worldatwork CECP Exam Practice Test Instant Access

Question 1

How is the performance review related to pay?

AIt isn't. The performance review should not be related to pay decisions.

BIt is related to the extent that it affects variable pay awards. Base pay is based solely on tenure, prior experience and job skills.

CIt helps managers meet salary budgets by allowing them to adjust review results to align with available salary increase funds.

DIt provides managers a measure that can be used along with salary planning guidelines to determine appropriate rewards or consequences.

Answer : D

Question 2

What best describes the compensation philosophy?

AThe compensation committee's interpretation of how employees can best meet business objectives

BGuidelines that determine the administration of compensation programs

CStatement of what the organization believes about how people should be paid

DPrinciples that guide the design of compensation programs

Answer : C

Question 3

Which of the following is the best definition of variable pay?

ACompensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

BCompensation that is nondiscretionary and does not vary according to performance or results

CCompensation that is contingent on discretion, performance or results

DCompensation that is determined by the organization's pay structure

Answer : C

Question 4

What best describes the two primary elements of compensation?

AFixed pay and variable pay

BBase pay and annual incentives

CDirect and indirect compensation

DSalary and hourly rate

Answer : A

Question 5

Cash compensation is a reward intended to provide what type of motivation?

AIntrinsic

BExtrinsic

Answer : B

Question 6

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 7

Which of the following is the best example of applying business executive to data analysis?

ACompiling data needed to calculate salary budgets and merit increases

BIdentifying trends and key messages emerging over time

CReviewing historical trends to complete annual budgets

DProviding quarterly incentive estimates for accruals

Answer : B

Worldatwork CECP Certified Executive Compensation Professional Exam Practice Test