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Total 89 questions

Regulatory Environments for Compensation Programs Questions and Answers

Question 1

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

Options:

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.

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Question 2

Which of the following scenarios best describes a contract worker?

Options:

A.

A technician who works a scheduled shift and performs tasks as assigned according to specifications.

B.

A computer programmer who telecommutes, uses her own equipment and works for multiple employers

C.

An accounts payable specialist who works at the company site utilizing an internal A/P system and pays vendors according to company procedures.

Question 3

Which one of the following should be included in a compensation guide for managers?

Options:

A.

Information on common management processes

B.

The consequences of various disciplinary measures

C.

Individual salary rates of employees in their department

Question 4

What best describes the most effective tactic for getting stakeholders’ attention and buy-in?

Options:

A.

Ask them to review or provide feedback, especially on something you have done for them

B.

Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position

C.

Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections

D.

Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern

Question 5

Which type of base pay is typically based on an individual employee's rate of production?

Options:

A.

Hourly rate

B.

Salary

C.

Piece rate

D.

Production rate   

Question 6

Why are lump-sum increases generally used?

Options:

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   

Question 7

What type of equity incentive gives employees the right to purchase company shares at a specified price?

Options:

A.

Stock/share options

B.

Stock/share grants

C.

Restricted stock/shares

D.

Performance units   

Question 8

Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

Options:

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.

Question 9

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?

Options:

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.

Question 10

Which of the following agencies enforces the FLSA?

Options:

A.

National Labor Relations Board

B.

Equal Employment Opportunity Commission

C.

Office of Federal Contract Compliance Programs

D.

Department of Labor

Question 11

Which of the following best describes severance allowances?

Options:

A.

A portion of one's salary paid during reserve duty and military leave

B.

A practice of paying a lump sum to employees during a company shutdown

C.

A continuation of an employee's salary after termination

D.

A continuation of a portion of an employee's salary to a beneficiary after the death of an employee

Question 12

Until what age does the FLSA limit the number of hours of nonhazardous work? (...as long as the overtime pay provisions are met)

Options:

A.

14 years of age

B.

15 years of age

C.

16 years of age

D.

18 years of age

Question 13

Which of the following is typically considered a health care benefit?

Options:

A.

Defined benefit plan

B.

Death benefits

C.

Defined contribution plan

D.

Vision plan   

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Total 89 questions