Free WorldatWork CECP Exam Questions

Become WorldatWork Certified with updated CECP exam questions and correct answers

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Total 101 Questions | Updated On: Jan 29, 2026

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Question 1

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

A : venue minus cost of goods sold

B : penses plus taxes and depreciation

C : oss profit minus expenses

D : t of goods sold

Answer: A

Question 2

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

A : xed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

B : riable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

C : xed costs and variable costs are equally important and both should be kept to a minimum.

D : xed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Answer: B

Question 3

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

A : ess a high level of education and competency in accounting principles

B : termine which programs are crucial to the enterprise and which programs are expendable

C : rtner with multiple departments and external consultants and vendors

D : monstrate broad understanding of principles of financial management and business expertise

Answer: D

Question 4

A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations. What strategy is this company using?

A : erational excellence

B : oduct/service leadership

C : tomer intimacy

D : and loyalty

Answer: C

Question 5

Why are lump-sum increases generally used?

A : control annual fixed costs from base pay adjustments

B : elevate employees who are below the midpoint in the range

C : To reward employees under short-term incentive plans

D : make up for benefits not provided by the organization

Answer: A

Page: 1 / 21

Total 101 Questions | Updated On: Jan 29, 2026

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