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BEST Verified WorldatWork CECP Exam Questions (2022)
NEW QUESTION 44
The XYZ Company produces innovative products and brings them to market in advance of their competitors. What strategy is XYZ using?
- A. Operational excellence
- B. Customer intimacy
- C. Product/service leadership
- D. Brand loyalty
Answer: C
NEW QUESTION 45
What best describes a use of strategic analysis?
- A. Pricing your products appropriately
- B. Understanding your business and its competitive strengths and weaknesses
- C. Forecasting profit, growth and investment performance to develop realistic budgets
- D. Evaluating prior year performance for the narrative portion of annual financial reports
Answer: B
NEW QUESTION 46
Regarding presentations to executives, which of the following is most accurate?
- A. Keep them brief
- B. Include all details related to the issue
- C. Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions
- D. Use multiple media
Answer: A
NEW QUESTION 47
Internal process metrics are most useful in which of the following situations?
- A. Evaluating customer perceptions of products or services
- B. Determining employee satisfaction levels
- C. Assessing how well the business is running
- D. Measuring the financial success of the business
Answer: C
NEW QUESTION 48
What best describes the most effective tactic for getting stakeholders' attention and buy-in?
- A. Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position
- B. Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern
- C. Ask them to review or provide feedback, especially on something you have done for them
- D. Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections
Answer: C
NEW QUESTION 49
Quarterly financial reports typically include data for a given quarter compared to what?
- A. The budget
- B. The same quarter in the previous year, plus the current six-month or nine-month cumulative comparables
- C. The previous quarter
- D. The aggregate performance of the same quarter in the previous three years
Answer: B
NEW QUESTION 50
Why are lump-sum increases generally used?
- A. To control annual fixed costs from base pay adjustments
- B. To make up for benefits not provided by the organization
- C. To elevate employees who are below the midpoint in the range
- D. To reward employees under short-term incentive plans
Answer: A
NEW QUESTION 51
Which of the following is a type of variable pay?
- A. Piece rate
- B. Hourly pay
- C. Bonuses
- D. Pay for time not worked
Answer: C
NEW QUESTION 52
How are the compensation communication needs of managers different from those of individual employees?
- A. They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.
- B. They are also responsible for merit increases, incentives and hiring so they have greater information needs.
- C. They aren't. Managers are concerned about their compensation also.
- D. They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
Answer: B
NEW QUESTION 53
As a general rule, what are individual contributors most likely to ask about their compensation?
- A. What the take-home pay will be
- B. How their pay compares to co-workers
- C. How the company sets compensation budgets
- D. How the company makes pay decisions that affect them
Answer: D
NEW QUESTION 54
What best describes the most effective approach for facilitating fact-based decisions?
- A. Estimating results based on historical data
- B. Determining, sourcing and collecting appropriate data
- C. Using statistical methods to predict outcomes
- D. Ensuring support from all internal and external stakeholders
Answer: B
NEW QUESTION 55
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. Product/service leadership
- B. Operational excellence
- C. Customer intimacy
- D. Brand loyalty
Answer: C
NEW QUESTION 56
What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?
- A. Giving priority to perspectives based on the job or influence level of the stakeholders
- B. Being firm and uncompromising in your decision-making
- C. Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking
- D. Representing your view with data and relating it to business results
Answer: D
NEW QUESTION 57
The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?
- A. Shares
- B. Increased market value and reinvested dividends paid
- C. Market capitalization
- D. Earnings
Answer: B
NEW QUESTION 58
What best describes what forecasting helps the organization to do?
- A. Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
- B. Prepare quarterly and annual reports and their associated statements
- C. Withhold payroll taxes for all elements of compensation
- D. Recognize possible issues and concerns that will drive budget planning
Answer: D
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. 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. Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible
- C. Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount
- D. Implement the merit increase budget as is because the anticipated financial obligations have made it necessary
Answer: B
NEW QUESTION 60
What type of equity incentive gives employees the right to purchase company shares at a specified price?
- A. Restricted stock/shares
- B. Stock/share grants
- C. Performance units
- D. Stock/share options
Answer: D
NEW QUESTION 61
What challenge is most likely faced by a business with low market share and high growth potential?
- A. Its ability to generate profits is unknown.
- B. Its excess resources are often used to develop other businesses that may not be mission-critical.
- C. It is in the worst market position and has insufficient resources to continue operations.
- D. It is unclear how to best utilize the high cash flow to sustain growth.
Answer: A
NEW QUESTION 62
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. 9,700,000
- B. 840,000
- C. 8,000,000
- D. 500,000
Answer: A
NEW QUESTION 63
Which of the following is a type of variable pay?
- A. Piece rate
- B. Commissions
- C. Hourly rate
- D. Salary
Answer: B
NEW QUESTION 64
Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?
- A. In the details of their individual compensation packages
- B. In the differences in pay levels for the different levels of the organization
- C. In the methods and processes used to make pay decisions
- D. In the overall program objectives
Answer: D
NEW QUESTION 65
Which of the following is the earnings available to equity owners after paying debt and taxes?
- A. Net income
- B. Operating profit
- C. EPS
- D. EBIT
Answer: A
NEW QUESTION 66
What choices are most commonly faced by companies in the decline phase of the business lifecycle?
- A. Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible
- B. Whether to improve productivity, obtain new operating capital or generate new sales growth
- C. Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand
- D. Whether to acquire competitors with greater market share or merge with more successful companies
Answer: A
NEW QUESTION 67
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 stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses
- C. Because you can demonstrate your understanding of issues from multiple perspectives
- D. Because you will be able to explain the negative consequences of opposing your position
Answer: C
NEW QUESTION 68
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