CECP WorldatWork Certified Executive Compensation Professional exact Exam Questions

Certified Executive Compensation Professional

Last Update 19 hours ago Total Questions : 100

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Question # 11

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

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

Compensation costs and revenue increase at approximately the same rate.

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

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

Question # 12

What is the most accurate statement regarding the effect of compensation plans on the organization?

They typically have the greatest effect on net income and operating results of any organizational expense or program

Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

They have very little effect as long as they are managed effectively and efficiently

They affect the organization’s overall financial status and impact multiple stakeholders across most, if not all, business units

Question # 13

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

Production worker

Account executive

IT contractor

HR Director

Question # 14

How is the performance review related to pay?

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

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

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

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

Question # 15

When connecting with other business units, what best describes a reason why is it important to keep up to date on organizational challenges?

Because you will be more informed when differences of opinion occur, lending more credibility to your position

Because you can demonstrate your understanding of issues from multiple perspectives

Because you will be able to explain the negative consequences of opposing your position

Because stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses

Question # 16

What best describes the two primary elements of compensation?

Fixed pay and variable pay

Base pay and annual incentives

Direct and indirect compensation

Salary and hourly rate

Question # 17

You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan. When presenting the plan to senior management, what would be the best strategy to receive approval?

Demonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy

Provide details on the plan design and measures and how they will be administered to employees at different levels

Make the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains

Identify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have

Question # 18

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

Mental health coverage and health care coverage

Pay for time not worked and income protection programs

Unemployment and disability

Defined contribution and defined benefits plans

Question # 19

The Alpha company ships an order to a customer on March 1st and invoices the customer for the product with the shipment, with payment terms of net 30 days. The customer’s payment is received on April 5th. The payment clears the bank and shows on Alpha’s account on April 8th. If Alpha is using accrual accounting, when does it record the revenue for this sale?

March 1st

March 31st

April 5th

April 8th