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: Oct 28, 2025

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Question 1

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 2

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 3

What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

A : cause legal compliance with compensation-related regulations is the responsibility of the compensation department

B : cause the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner

C : cause it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company

D : ey shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Answer: B

Question 4

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 5

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

Page: 1 / 21

Total 101 Questions | Updated On: Oct 28, 2025

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