CECP Dumps 2021 - New WorldatWork CECP Exam Questions
Free CECP Braindumps Download Updated on Oct 29, 2021 with 99 Questions
NEW QUESTION 42
Which of the following is a type of variable pay?
- A. Piece rate
- B. Commissions
- C. Hourly rate
- D. Salary
Answer: B
NEW QUESTION 43
Which of the following is a type of variable pay?
- A. Pay for time not worked
- B. Hourly pay
- C. Piece rate
- D. Bonuses
Answer: D
NEW QUESTION 44
Which of the following is the best example of a variable cost?
- A. Shipping
- B. Rent
- C. Audit fees
- D. Maintenance
Answer: A
NEW QUESTION 45
What most accurately describes a reason why organizations use financial reports?
- A. To create a historical record of financial performance and identify trends that may justify changes in strategy
- B. To differentiate company financial data from industry competitors to prevent loss of proprietary information
- C. To promote consistency of communication regarding company performance and value
- D. To provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities
Answer: C
NEW QUESTION 46
The "Value Store" retail company offers its customers low prices and ease of purchase by minimizing waste and striving for high efficiency. What strategy is the "Value Store" using?
- A. Brand loyalty
- B. Product/service leadership
- C. Customer intimacy
- D. Operational excellence
Answer: D
NEW QUESTION 47
Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?
- A. Effective interpersonal and communication skills that can overshadow minor deficiencies in any one area
- B. The ability to prioritize which is most critical in any given situation and allocate time and resources accordingly
- C. The ability to tie them together, distill key messages and make impactful decisions
- D. The level of formal education in each area
Answer: C
NEW QUESTION 48
What best describes the two primary elements of compensation?
- A. Base pay and annual incentives
- B. Salary and hourly rate
- C. Fixed pay and variable pay
- D. Direct and indirect compensation
Answer: C
NEW QUESTION 49
Why are lump-sum increases generally used?
- A. To reward employees under short-term incentive plans
- B. To elevate employees who are below the midpoint in the range
- C. To make up for benefits not provided by the organization
- D. To control annual fixed costs from base pay adjustments
Answer: D
NEW QUESTION 50
What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?
- A. General
- B. Automatic
- C. Merit
- D. Cost of living
Answer: A
NEW QUESTION 51
Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?
- A. Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.
- B. Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.
- C. Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.
- D. Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.
Answer: B
NEW QUESTION 52
Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?
- A. Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases
- B. Implement the merit increase budget as is because the anticipated financial obligations have made it necessary
- C. Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible
- D. Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount
Answer: C
NEW QUESTION 53
Who are you most likely to hear from if there are questions about an employee's compensation?
- A. The employee's department head
- B. The employee
- C. A concerned co-worker
- D. The employee's manager
Answer: D
NEW QUESTION 54
What best describes an effective core technique for communicating with executives?
- A. Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
- B. Recommend a solution that will solve the issue and explain why it is the best solution available.
- C. Provide 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.
- D. Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
Answer: B
NEW QUESTION 55
What is a primary purpose of pay grades or bands?
- A. To identify a compensation range in which to group multiple jobs with similar value
- B. To justify paying some employees less than market based on internal administrative limitations
- C. To provide documentation that supports termination decisions
- D. To meet legal and regulatory requirements for classifying jobs according to market value
Answer: A
NEW QUESTION 56
What is the most accurate definition of organizational vision?
- A. A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders
- B. A detailed account of the organization's goals, directions to achieve them and how it will compete
- C. A written explanation of the intention or purpose of the organization and why it is in business
- D. A description of who the organization is, where it is headed and what it wants for the future
Answer: D
NEW QUESTION 57
How is the performance review related to pay?
- A. It isn't. The performance review should not be related to pay decisions.
- B. It helps managers meet salary budgets by allowing them to adjust review results to align with available salary increase funds.
- C. It provides managers a measure that can be used along with salary planning guidelines to determine appropriate rewards or consequences.
- D. It is related to the extent that it affects variable pay awards. Base pay is based solely on tenure, prior experience and job skills.
Answer: C
NEW QUESTION 58
Which type of variable pay is best described by this statement: Criteria are discretionary and often defined in broad terms such as "exceptional customer service"?
- A. Profit-sharing
- B. Bonus
- C. Recognition
- D. Commission
Answer: C
NEW QUESTION 59
What best describes the primary purpose of budgeting?
- A. Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
- B. Making choices about spending based on expectations of performance
- C. Increasing profitability of the business annually to maximize shareholder/owner value
- D. Limiting spending to a fixed percentage of organizational revenue
Answer: B
NEW QUESTION 60
Cash compensation is a reward intended to provide what type of motivation?
- A. Extrinsic
- B. Intrinsic
Answer: A
NEW QUESTION 61
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. Start-up
- C. Mature
- D. Decline
Answer: C
NEW QUESTION 62
What best describes a necessary skill and/or behavior in relation to business executive?
- A. A thorough understanding of the products and/or services your organization provides
- B. A willingness to take on additional duties and responsibilities when resources are limited
- C. The capacity to manage multiple projects and priorities and meet deadlines
- D. An understanding of the culture and subcultures of your organization
Answer: D
NEW QUESTION 63
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