WorldatWork Certified Compensation Professional (CCP) C8 Questions & Answers

• Question 11:

  Quarterly financial reports typically include data for a given quarter compared to what?

  A. The previous quarter

  B. The budget

  C. The same quarter in the previous year, plus the current six-month or nine-month cumulative comparables

  D. The aggregate performance of the same quarter in the previous three years

  Correct Answer: C

• Question 12:

  Using efficient and cost-effective approaches to integrate technology into the workplace is an example of what key competency for compensation professionals?

  A. Financial Management

  B. HR Management

  C. Resource Management

  D. Policy Management

  Correct Answer: C

• Question 13:

  The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary. What stage of the business lifecycle is XYZ most likely in?

  A. Start-up

  B. Growth

  C. Mature

  D. Decline

  Correct Answer: C

• Question 14:

  Regarding market position, a business with a high market share but low growth potential is typically referred to as what?

  A. A Star

  B. A Question Mark

  C. A Market Leader

  D. A Cash Cow

  Correct Answer: D

• Question 15:

  Regarding fixed and variable costs, what are Finance's primary concerns?

  A. Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

  B. Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

  C. Fixed costs and variable costs are equally important and both should be kept to a minimum.

  D. Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

  Correct Answer: B

• Question 16:

  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 using cash from other segments of the business

  B. By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

  C. By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

  D. By identifying and duplicating the strategy used by its main competitor.

  Correct Answer: A

• Question 17:

  Which of the following best describes present value?

  A. The current value of holdings

  B. The current value of holdings and how much it will grow over time at a given rate of return

  C. The desired value in the future and what needs to be invested today to realize that amount

  D. The difference between the desired value in the future and the current value as a percentage of the desired value

  Correct Answer: C

• Question 18:

  Assessment of current and future staffing needs should be based primarily on what?

  A. Compensation budgets only because staffing cannot exceed the funds available

  B. A combination of organizational goals and budget realities

  C. The consensus of HR management and line management estimates

  D. The opinions of senior leaders in the organization

  Correct Answer: B

• Question 19:

  What is the most accurate statement regarding the effect of compensation plans on the organization?

  A. They typically have the greatest effect on net income and operating results of any organizational expense or program

  B. Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

  C. They have very little effect as long as they are managed effectively and efficiently

  D. They affect the organization's overall financial status and impact multiple stakeholders across most, if not all, business units

  Correct Answer: D

• Question 20:

  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

  Correct Answer: B