WorldatWork C1 real exam prep : Regulatory Environments for Compensation Programs

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WorldatWork C1 Exam Syllabus Topics:

WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Gross margin is which of the following, as percent of revenue?

A) Cost of goods sold
B) Expenses plus taxes and depreciation
C) Revenue minus cost of goods sold
D) Gross profit minus expenses

2. 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 increases at the same rate as variable costs.
C) It becomes increasingly higher as revenues increase.
D) It decreases because variable costs are increasing.

3. Upon which criterion are step increases typically based?

A) Market adjustment
B) Longevity
C) Individual performance
D) Skills

4. 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?

A) No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.
B) Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels
C) Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns
D) Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable

5. To establish disparate treatment in violation of Title VII of the Civil Rights Act of 1964, an employee must prove that the employer intentionally maintains the pay disparity because the employee is a member of a protected class and which of the following?

A) The employer maintains a wage disparity between employees who do unequal, but comparable work.
B) He or she receives a lower wage than a co-worker of the opposite sex.
C) He or she is paid less than employees who are not members of the same protected group.

Solutions: