WorldatWork WC-C8 Online Practice Questions and Exam Preparation

WorldatWork WC-C8 Online Questions & Answers

• Question 61:

  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
  B. Identifying trends and key messages emerging over time

• Question 62:

  What question is answered by the organization's mission statement?

  A. What direction will we take?
  B. How do we work?
  C. Why are we in business?
  D. How will we achieve our objectives?
  C. Why are we in business?

• Question 63:

  The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

  A. Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable
  B. Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns
  C. Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels
  D. No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.
  B. Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns

• Question 64:

  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.
  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.

• Question 65:

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

• Question 66:

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

• Question 67:

  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. Product/service leadership
  C. Customer intimacy
  D. Brand loyalty
  B. Product/service leadership

• Question 68:

  What is the most accurate statement regarding forecasting?

  A. It is a precise estimate of what the future holds for the organization.
  B. It is done primarily by using historical revenue and expense data.
  C. It is done primarily by evaluating market conditions and economic indicators.
  D. It uses internal and external factors to help answer questions about business expectations for the future.
  D. It uses internal and external factors to help answer questions about business expectations for the future.

• Question 69:

  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
  A. Revenue minus cost of goods sold

• Question 70:

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