What best describes a key competency of compensation professionals regarding HR management of the organization's employees?

A. Ensuring they are appropriately selected, developed, appraised and rewarded

B. Monitoring individual employee career paths and succession planning

C. Communicating regularly with line management on performance management

D. Ensuring that all regulatory and voluntary payroll deductions are properly administered

Who are you most likely to hear from if there are questions about an employee's compensation?

A. The employee

B. A concerned co-worker

C. The employee's manager

D. The employee's department head

Information on the annual report shows results for what time period?

A. The calendar year from January 1 to December 31

B. The fiscal year, which matches the calendar year from January 1 to December 31

C. The fiscal year, which shows results from July 1 to June 30

D. The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company

To ensure appropriate funding levels, the compensation professional must generally do which of the following?

A. Possess a high level of education and competency in accounting principles

B. Determine which programs are crucial to the enterprise and which programs are expendable

C. Partner with multiple departments and external consultants and vendors

D. Demonstrate broad understanding of principles of financial management and business expertise

What best describes the primary purpose of budgeting?

A. Limiting spending to a fixed percentage of organizational revenue

B. Making choices about spending based on expectations of performance

C. Increasing profitability of the business annually to maximize shareholder/owner value

D. Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?

A. Reduce compensation expense

B. Improve program efficacy

C. Select the best vendors

D. Compensate employees competitively

What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?

A. Being firm and uncompromising in your decision-making

B. Representing your view with data and relating it to business results

C. Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking

D. Giving priority to perspectives based on the job or influence level of the stakeholders

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

A. Compensation costs eventually stabilize and become a consistent percent of revenue.

B. Compensation costs and revenue increase at approximately the same rate.

C. Compensation costs eventually decrease as a percent of revenue, increasing profit growth.

D. Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A. It remains the same.

B. It decreases because variable costs are increasing.

C. It increases at the same rate as variable costs.

D. It becomes increasingly higher as revenues increase.

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.