CECP Exam Dumps - WorldatWork Certification Questions and Answers

Variable costs decrease

Fixed costs decrease

Variable costs increase and consume a higher percent of revenue

Fixed costs remain the same and consume a lower percent of revenue

To differentiate company financial data from industry competitors to prevent loss of proprietary information

To provide subjective information to key constituents that reflects the company’s performance in the most favorable manner depending on stakeholder priorities

To create a historical record of financial performance and identify trends that may justify changes in strategy

To promote consistency of communication regarding company performance and value

Variable pay costs as a percent of total compensation

Total compensation expense for the business, including base pay and variable pay

Reward costs as a percent of total operating costs

The organization’s market compa-ratio

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable

Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns

Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels

No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.

If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.

Obtaining and developing skills provides leverage for the employee to seek more compensation.

Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.

Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

Recommend a solution that will solve the issue and explain why it is the best solution available.

EBIT

EPS

Net income

Operating profit

Start-up

Growth

Mature

Decline

They typically have the greatest effect on net income and operating results of any organizational expense or program

Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

They have very little effect as long as they are managed effectively and efficiently

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