CECP Dumps with Practice Exam Questions Answers
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NEW QUESTION 38
What is the most accurate statement regarding forecasting?
- A. It uses internal and external factors to help answer questions about business expectations for the future.
- 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 is a precise estimate of what the future holds for the organization.
Answer: A
NEW QUESTION 39
What most accurately describes a reason why organizations use financial reports?
- A. To create a historical record of financial performance and identify trends that may justify changes in strategy
- B. To differentiate company financial data from industry competitors to prevent loss of proprietary information
- C. To promote consistency of communication regarding company performance and value
- D. To provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities
Answer: C
NEW QUESTION 40
An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?
- A. Growth
- B. Mature
- C. Start-up
- D. Decline
Answer: C
NEW QUESTION 41
How do quarterly reports most commonly compare to the annual report?
- A. The cumulative information on the four quarterly reports adds up to the information on the annual report.
- B. The quarterly reports are more detailed. The annual report provides similar data in summary form.
- C. The annual report is required and the quarterly reports, while commonly used, are optional.
- D. The quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.
Answer: D
NEW QUESTION 42
Which of the following is the best definition of variable pay?
- A. Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.
- B. Compensation that is determined by the organization's pay structure
- C. Compensation that is nondiscretionary and does not vary according to performance or results
- D. Compensation that is contingent on discretion, performance or results
Answer: D
NEW QUESTION 43
Which of the following is the best example of a variable cost?
- A. Shipping
- B. Rent
- C. Audit fees
- D. Maintenance
Answer: A
NEW QUESTION 44
What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?
- A. Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking
- B. Giving priority to perspectives based on the job or influence level of the stakeholders
- C. Being firm and uncompromising in your decision-making
- D. Representing your view with data and relating it to business results
Answer: D
NEW QUESTION 45
When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?
- A. Individuals with power in the organization who have the authority to overrule the concerns of opponents
- B. No one person. Identify your stakeholders and work to achieve consensus among the majority.
- C. Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives
- D. The most senior leader with the highest level of authority
Answer: C
NEW QUESTION 46
Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?
- A. IT contractor
- B. HR Director
- C. Account executive
- D. Production worker
Answer: B
NEW QUESTION 47
Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?
- A. Compensate employees competitively
- B. Improve program efficacy
- C. Reduce compensation expense
- D. Select the best vendors
Answer: B
NEW QUESTION 48
Who are you most likely to hear from if there are questions about an employee's compensation?
- A. The employee's department head
- B. The employee
- C. A concerned co-worker
- D. The employee's manager
Answer: D
NEW QUESTION 49
Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?
- A. The income statement
- B. The cash flow statement and the income statement
- C. The cash flow statement, along with the balance sheet and income statement
- D. The balance sheet
Answer: C
NEW QUESTION 50
How is the purpose of a non-profit organization typically communicated?
- A. Documented internally but not released to the public to protect trade secrets and maintain competitive advantage
- B. Implied in the mission, vision and strategy and specifically explained on the organization's website
- C. Explained throughout the mission, vision, values and strategy
- D. Reflected in the mission, vision, values and strategy although often not stated directly
Answer: D
NEW QUESTION 51
Regarding fixed and variable costs, what tends to happen as revenue increases?
- A. Fixed costs remain the same and consume a lower percent of revenue
- B. Variable costs decrease
- C. Variable costs increase and consume a higher percent of revenue
- D. Fixed costs decrease
Answer: A
NEW QUESTION 52
What do working capital metrics evaluate?
- A. The change in working capital over a specific period of time, typically one year
- B. A company's efficiency in converting short-term capital into cash
- C. A company's mean capital expenditure per employee
- D. The amount of cash needed to meet the company's short-term obligations
Answer: B
NEW QUESTION 53
Which of the following statements is most accurate regarding pay grades/bands?
- A. They identify the actual compensation paid to each employee
- B. They represent the difference between the midpoint and the maximum of a given salary grade
- C. They include incentives that are paid out at certain times of the year
- D. They may overlap with minimums and maximums falling within adjoining grades
Answer: D
NEW QUESTION 54
What is the top line or starting point of an organization's income?
- A. Revenue
- B. Gross profit
- C. Operating profit
- D. Net income
Answer: A
NEW QUESTION 55
Regarding fixed and variable costs, what are Finance's primary concerns?
- A. Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.
- B. Fixed costs and variable costs are equally important and both should be kept to a minimum.
- C. Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.
- D. Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
Answer: C
NEW QUESTION 56
How do commissions typically differ from annual incentives for non-executive employees?
- A. They are offered to motivate employee performance.
- B. They tend to make up the larger portion of an employee's total compensation.
- C. They are intended to align the interests of the employee with those of the organization.
- D. They are based on a predetermined performance and reward schedule.
Answer: B
NEW QUESTION 57
As a general rule, what are individual contributors most likely to ask about their compensation?
- A. What the take-home pay will be
- B. How their pay compares to co-workers
- C. How the company sets compensation budgets
- D. How the company makes pay decisions that affect them
Answer: D
NEW QUESTION 58
Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?
- A. In the overall program objectives
- B. In the methods and processes used to make pay decisions
- C. In the details of their individual compensation packages
- D. In the differences in pay levels for the different levels of the organization
Answer: A
NEW QUESTION 59
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