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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

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

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

2. Which of the following best describes a form of base pay that is a fixed weekly, biweekly or monthly payment?

A) Bonuses
B) Salary
C) Piece rate
D) Hourly rate

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

A) 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.
B) 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.
C) 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.
D) 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.

4. The concept of bona fide occupational qualifications has most direct relevance to which of the following components of employee compensation programs?

A) Performance evaluations
B) Job specifications
C) Job descriptions
D) Salary surveys

5. Which of the following agencies enforces the FLSA?

A) Office of Federal Contract Compliance Programs
B) Equal Employment Opportunity Commission
C) Department of Labor
D) National Labor Relations Board

Solutions: