Free Practice WorldatWork CECP Exam Questions 2025

Stay ahead with 100% Free Certified Executive Compensation Professional CECP Dumps Practice Questions

Page: 1 / 21

Total 101 Questions | Updated On: Jun 04, 2025

Add To Cart

Question 1

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

A : Because legal compliance with compensation-related regulations is the responsibility of the compensation department

B : Because the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

C : Because it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

D : They shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Answer: B

Question 2

Why are lump-sum increases generally used?

A : To control annual fixed costs from base pay adjustments

B : To elevate employees who are below the midpoint in the range

C : To reward employees under short-term incentive plans

D : To make up for benefits not provided by the organization

Answer: A

Question 3

Which of the following is the most accurate statement about the business strategy?

A : It usually is a secondary consideration in compensation design.

B : It is the company's plan for competitive positioning of its products or services.

C : It must be written after the company's operating plans are approved by senior management.

D : It is developed for compensation, benefits and the work-life using the HR strategy as a basis.

Answer: B

Question 4

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.

Answer: B

Question 5

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

Answer: A

Page: 1 / 21

Total 101 Questions | Updated On: Jun 04, 2025

Add To Cart