Question No. 1

What statement is most accurate regarding communication of compensation information?

ACompensation professionals should anticipate the level of the audience and tailor messages to their needs.

BCompensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

CThe ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.

DCompensation terms are well-known and easily understood by most stakeholders.

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Correct Answer: A

Question No. 2

What do working capital metrics evaluate?

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

BA company's efficiency in converting short-term capital into cash

CA company's mean capital expenditure per employee

DThe amount of cash needed to meet the company's short-term obligations

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Correct Answer: B

Question No. 3

What is a primary objective of profit-sharing and performance-sharing variable pay plans?

ATo achieve organizational cost savings through base pay reductions

BTo increase employee identification with the organization's success

CTo defer compensation expenses to future reporting periods

DTo reward individual employees for some significant contribution

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Correct Answer: B

Question No. 4

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?

AOperational excellence

BProduct/service leadership

CCustomer intimacy

DBrand loyalty

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Correct Answer: A

Question No. 5

Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?

AMission

BVision

CValues

DStrategy

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Correct Answer: C

Free Worldatwork CECP Exam Actual Questions

The questions for CECP were last updated On Nov 18, 2024