WorldatWork Certified Compensation Professional (CCP) C8 Questions & Answers

• Question 41:

  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

  Correct Answer: C

• Question 42:

  Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

  A. 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.

  B. 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.

  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.

  Correct Answer: A

• Question 43:

  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. It is in the worst market position and has insufficient resources to continue operations.

  C. It is unclear how to best utilize the high cash flow to sustain growth.

  D. Its excess resources are often used to develop other businesses that may not be mission-critical.

  Correct Answer: A

• Question 44:

  What choices are most commonly faced by companies in the decline phase of the business lifecycle?

  A. Whether to improve productivity, obtain new operating capital or generate new sales growth

  B. Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible

  C. Whether to acquire competitors with greater market share or merge with more successful companies

  D. Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand

  Correct Answer: B

• Question 45:

  Gross margin is which of the following, as percent of revenue?

  A. Revenue minus cost of goods sold

  B. Expenses plus taxes and depreciation

  C. Gross profit minus expenses

  D. Cost of goods sold

  Correct Answer: A

• Question 46:

  How do quarterly reports most commonly compare to the annual report?

  A. The cumulative information on the four quarterly reports adds up to the information on the annual report.

  B. The quarterly reports are more detailed. The annual report provides similar data in summary form.

  C. The annual report is required and the quarterly reports, while commonly used, are optional.

  D. The quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

  Correct Answer: D

• Question 47:

  "Cost-benefit thinking" is most useful in the context of financial management for purposes of what?

  A. Procurement

  B. Recruiting

  C. Setting priorities

  D. Plan administration

  Correct Answer: C

• Question 48:

  Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?

  A. The level of formal education in each area

  B. The ability to prioritize which is most critical in any given situation and allocate time and resources accordingly

  C. The ability to tie them together, distill key messages and make impactful decisions

  D. Effective interpersonal and communication skills that can overshadow minor deficiencies in any one area

  Correct Answer: C

• Question 49:

  When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?

  A. The most senior leader with the highest level of authority

  B. No one person. Identify your stakeholders and work to achieve consensus among the majority.

  C. Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives

  D. Individuals with power in the organization who have the authority to overrule the concerns of opponents

  Correct Answer: C

• Question 50:

  How is the purpose of a non-profit organization typically communicated?

  A. Explained throughout the mission, vision, values and strategy

  B. Implied in the mission, vision and strategy and specifically explained on the organization's website

  C. Reflected in the mission, vision, values and strategy although often not stated directly

  D. Documented internally but not released to the public to protect trade secrets and maintain competitive advantage

  Correct Answer: C