WorldatWork CECP Certified Executive Compensation Professional Exam Practice Test

Because the internal and external environments are constantly changing

Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

Because they are emotional issues and stakeholders have many vested interests

Because strong business executive is required for all compensation decisions

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

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

Compensation that is contingent on discretion, performance or results

Compensation that is determined by the organization's pay structure   

In the methods and processes used to make pay decisions

In the details of their individual compensation packages

In the overall program objectives

In the differences in pay levels for the different levels of the organization

The change in working capital over a specific period of time, typically one year

A company’s efficiency in converting short-term capital into cash

A company’s mean capital expenditure per employee

The amount of cash needed to meet the company’s short-term obligations

Business forecasting

Business analytics

Predictive modeling

Statistical analysis

Financial Management

HR Management

Resource Management

Policy Management

The ability to display confidence and decisiveness that will inspire others and make you a better leader

A greater likelihood of promotion, especially when you are competing with individuals with more experience

Increased marketability, which will lead to qualification for opportunities outside of human resources

It is critical to your career development and a deficiency is very likely to hinder career advancement and success.

The corporate mission

The business strategy

The compensation strategy

The corporate vision   

At established dates and then every six months thereafter

On January 1 and July 1 of each year

Once when they move a step, and again when the step value changes

At the anniversary date and at the annual merit increase date   

Start-up

Growth

Mature

Decline

It is a precise estimate of what the future holds for the organization.

It is done primarily by using historical revenue and expense data.

It is done primarily by evaluating market conditions and economic indicators.

It uses internal and external factors to help answer questions about business expectations for the future.

The cumulative information on the four quarterly reports adds up to the information on the annual report.

The quarterly reports are more detailed. The annual report provides similar data in summary form.

The annual report is required and the quarterly reports, while commonly used, are optional.

The quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

500,000

840,000

8,000,000

9,700,000

Possess a high level of education and competency in accounting principles

Determine which programs are crucial to the enterprise and which programs are expendable

Partner with multiple departments and external consultants and vendors

Demonstrate broad understanding of principles of financial management and business expertise

Variable pay costs as a percent of total compensation

Total compensation expense for the business, including base pay and variable pay

Reward costs as a percent of total operating costs

The organization’s market compa-ratio