WorldatWork WC-C8 Online Practice Questions and Exam Preparation

WorldatWork WC-C8 Online Questions & Answers

• Question 51:

  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
  B. A combination of organizational goals and budget realities

• Question 52:

  If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

  A. A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits
  B. 100% variable pay to motivate all employees to maximize productivity and sales
  C. 90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions
  D. High base pay and low variable pay to ensure predictability of total compensation expense
  A. A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

• Question 53:

  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. 840,000
  C. 8,000,000
  D. 9,700,000
  D. 9,700,000

• Question 54:

  What is the top line or starting point of an organization's income?

  A. Gross profit
  B. Revenue
  C. Net income
  D. Operating profit
  B. Revenue

• Question 55:

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

• Question 56:

  Regarding fixed and variable costs, what tends to happen as revenue increases?

  A. Variable costs decrease
  B. Fixed costs decrease
  C. Variable costs increase and consume a higher percent of revenue
  D. Fixed costs remain the same and consume a lower percent of revenue
  D. Fixed costs remain the same and consume a lower percent of revenue

• Question 57:

  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
  C. Reward costs as a percent of total operating costs

• Question 58:

  What best describes a necessary skill and/or behavior in relation to business acumen?

  A. An understanding of the culture and subcultures of your organization
  B. The capacity to manage multiple projects and priorities and meet deadlines
  C. A willingness to take on additional duties and responsibilities when resources are limited
  D. A thorough understanding of the products and/or services your organization provides
  A. An understanding of the culture and subcultures of your organization

• Question 59:

  "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
  C. Setting priorities

• Question 60:

  How are the compensation communication needs of managers different from those of individual employees?

  A. They aren't. Managers are concerned about their compensation also.
  B. They are also responsible for merit increases, incentives and hiring so they have greater information needs.
  C. They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
  D. 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.