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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What is a primary objective of profit-sharing and performance-sharing variable pay plans?

A) To increase employee identification with the organization's success
B) To reward individual employees for some significant contribution
C) To achieve organizational cost savings through base pay reductions
D) To defer compensation expenses to future reporting periods

2. Which of the following are the two primary elements of benefits?

A) Mental health coverage and health care coverage
B) Unemployment and disability
C) Defined contribution and defined benefits plans
D) Pay for time not worked and income protection programs

3. Regarding fixed and variable costs, what are Finance's primary concerns?

A) Fixed costs and variable costs are equally important and both should be kept to a minimum.
B) Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
C) Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.
D) Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

4. Which of the following acts is focused on employers with construction contracts with the government?

A) McNamara-O'Hara Act
B) Sherman Antitrust Act
C) Davis-Bacon Act
D) National Labor Relations Act

5. What is one reason that it is important to perform a periodic audit of processes and results?

A) It builds in a process of continuous improvement
B) It determines what information and data sources will be used in the audit
C) It is required in determining increase budgets
D) It is required by the Department of Labor

Solutions: