WorldatWork Certified Compensation Professional (CCP) C8 Questions & Answers

• Question 1:

  Which of the following is the best example of a variable cost?

  A. Audit fees

  B. Rent

  C. Maintenance

  D. Shipping

  Correct Answer: D

• Question 2:

  Administering budgets is an example of what key competency for compensation professionals?

  A. Financial Management

  B. HR Management

  C. Resource Management

  D. Policy Management

  Correct Answer: A

• Question 3:

  The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?

  A. Earnings

  B. Shares

  C. Market capitalization

  D. Increased market value and reinvested dividends paid

  Correct Answer: D

• Question 4:

  What best describes the most effective approach for facilitating fact-based decisions?

  A. Ensuring support from all internal and external stakeholders

  B. Estimating results based on historical data

  C. Using statistical methods to predict outcomes

  D. Determining, sourcing and collecting appropriate data

  Correct Answer: D

• Question 5:

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

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

  Correct Answer: B

• Question 6:

  Internal process metrics are most useful in which of the following situations?

  A. Assessing how well the business is running

  B. Determining employee satisfaction levels

  C. Measuring the financial success of the business

  D. Evaluating customer perceptions of products or services

  Correct Answer: A

• Question 7:

  Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

  A. In the methods and processes used to make pay decisions

  B. In the details of their individual compensation packages

  C. In the overall program objectives

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

  Correct Answer: C

• Question 8:

  What best describes a benefit of business acumen with regard to career development?

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

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

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

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

  Correct Answer: A

• Question 9:

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

  A. Production worker

  B. Account executive

  C. IT contractor

  D. HR Director

  Correct Answer: D

• Question 10:

  Which of the following is the best example of applying business acumen to data analysis?

  A. Compiling data needed to calculate salary budgets and merit increases

  B. Identifying trends and key messages emerging over time

  C. Reviewing historical trends to complete annual budgets

  D. Providing quarterly incentive estimates for accruals

  Correct Answer: B