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Certified Executive Compensation Professional Exam Questions and Answers

Questions 1

Cash compensation is a reward intended to provide what type of motivation?

Options:

A.

Intrinsic

B.

Extrinsic   

Questions 2

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

Options:

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

Questions 3

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

Options:

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.

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