WorldatWork CECP Real Exam Questions Test Engine Dumps Training With 99 Questions
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NEW QUESTION 37
Regarding market position, a business with a high market share but low growth potential is typically referred to as what?
- A. A Market Leader
- B. A Question Mark
- C. A Cash Cow
- D. A Star
Answer: C
NEW QUESTION 38
When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?
- A. Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives
- B. Individuals with power in the organization who have the authority to overrule the concerns of opponents
- C. No one person. Identify your stakeholders and work to achieve consensus among the majority.
- D. The most senior leader with the highest level of authority
Answer: A
NEW QUESTION 39
Who are you most likely to hear from if there are questions about an employee's compensation?
- A. The employee's manager
- B. The employee's department head
- C. A concerned co-worker
- D. The employee
Answer: A
NEW QUESTION 40
A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations. What strategy is this company using?
- A. Operational excellence
- B. Product/service leadership
- C. Customer intimacy
- D. Brand loyalty
Answer: C
NEW QUESTION 41
What do profits, equity and debt all have in common?
- A. They are all reported on the balance sheet.
- B. They all incur the same costs to the business.
- C. Nothing. Each of these is a different financial metric.
- D. They are all sources of capital.
Answer: D
NEW QUESTION 42
The Alpha Company was once a strong company that commanded a high percentage of the market it operated in. In recent years, Alpha has been losing market share to competitors in its primary line of business and has been unable to find a competitive strategy to grow and return to profitability. Given its market position, how is Alpha most likely finding the monetary resources to continue operations?
- A. By identifying and duplicating the strategy used by its main competitor.
- B. By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even
- C. By using cash from other segments of the business
- D. By using its high credit rating from prior years to receive a line of credit until the strategy begins to work
Answer: C
NEW QUESTION 43
Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?
- A. The ability to prioritize which is most critical in any given situation and allocate time and resources accordingly
- B. Effective interpersonal and communication skills that can overshadow minor deficiencies in any one area
- 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 44
What best describes a necessary skill and/or behavior in relation to business executive?
- A. The capacity to manage multiple projects and priorities and meet deadlines
- B. A thorough understanding of the products and/or services your organization provides
- C. An understanding of the culture and subcultures of your organization
- D. A willingness to take on additional duties and responsibilities when resources are limited
Answer: C
NEW QUESTION 45
What do working capital metrics evaluate?
- A. A company's mean capital expenditure per employee
- B. The amount of cash needed to meet the company's short-term obligations
- C. The change in working capital over a specific period of time, typically one year
- D. A company's efficiency in converting short-term capital into cash
Answer: D
NEW QUESTION 46
What challenge is most likely faced by a business with low market share and high growth potential?
- A. Its excess resources are often used to develop other businesses that may not be mission-critical.
- B. It is unclear how to best utilize the high cash flow to sustain growth.
- C. It is in the worst market position and has insufficient resources to continue operations.
- D. Its ability to generate profits is unknown.
Answer: D
NEW QUESTION 47
Using efficient and cost-effective approaches to integrate technology into the workplace is an example of what key competency for compensation professionals?
- A. Resource Management
- B. Financial Management
- C. HR Management
- D. Policy Management
Answer: A
NEW QUESTION 48
What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?
- A. Variable pay costs as a percent of total compensation
- B. Total compensation expense for the business, including base pay and variable pay
- C. Reward costs as a percent of total operating costs
- D. The organization's market compa-ratio
Answer: C
NEW QUESTION 49
What is the most common term for the broad framework of principles and approaches that guide day-to-day decisions affecting the business, including how it positions itself in the market?
- A. The business plan
- B. The competitive strategy
- C. The mission statement
- D. The corporate objective
Answer: B
NEW QUESTION 50
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 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.
- 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. 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.
- D. 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.
Answer: B
NEW QUESTION 51
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?
- A. March 31st
- B. April 5th
- C. March 1st
- D. April 8th
Answer: C
NEW QUESTION 52
Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?
- A. Vision
- B. Strategy
- C. Values
- D. Mission
Answer: C
NEW QUESTION 53
What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?
- A. They shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.
- B. Because the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner
- C. Because legal compliance with compensation-related regulations is the responsibility of the compensation department
- D. Because it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company
Answer: B
NEW QUESTION 54
Regarding fixed and variable costs, what tends to happen as revenue increases?
- A. Variable costs increase and consume a higher percent of revenue
- B. Variable costs decrease
- C. Fixed costs decrease
- D. Fixed costs remain the same and consume a lower percent of revenue
Answer: D
NEW QUESTION 55
What is the most accurate statement regarding forecasting?
- A. It uses internal and external factors to help answer questions about business expectations for the future.
- B. It is a precise estimate of what the future holds for the organization.
- C. It is done primarily by evaluating market conditions and economic indicators.
- D. It is done primarily by using historical revenue and expense data.
Answer: A
NEW QUESTION 56
When connecting with other business units, what best describes a reason why is it important to keep up to date on organizational challenges?
- A. Because you will be more informed when differences of opinion occur, lending more credibility to your position
- B. Because you can demonstrate your understanding of issues from multiple perspectives
- C. Because stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses
- D. Because you will be able to explain the negative consequences of opposing your position
Answer: B
NEW QUESTION 57
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 provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities
- D. To promote consistency of communication regarding company performance and value
Answer: D
NEW QUESTION 58
The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?
- A. 500,000
- B. 8,000,000
- C. 9,700,000
- D. 840,000
Answer: C
NEW QUESTION 59
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. Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount
- B. 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
- C. Implement the merit increase budget as is because the anticipated financial obligations have made it necessary
- D. Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible
Answer: D
NEW QUESTION 60
Information on the annual report shows results for what time period?
- A. The fiscal year, which matches the calendar year from January 1 to December 31
- B. The calendar year from January 1 to December 31
- C. The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company
- D. The fiscal year, which shows results from July 1 to June 30
Answer: C
NEW QUESTION 61
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