Question 1

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

Options :

A : A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

B : 100% variable pay to motivate all employees to maximize productivity and sales

C : 90/10 for the majority of employees (base/variable) to share in the company-s success with increased variable pay for management/executives to motivate employees to seek higher positions

D : High base pay and low variable pay to ensure predictability of total compensation expense

Answer: A

Question 2

Which of the following is the most accurate statement about the business strategy?

Options :

A : It usually is a secondary consideration in compensation design.

B : It is the company-s plan for competitive positioning of its products or services.

C : It must be written after the company-s operating plans are approved by senior management.

D : It is developed for compensation, benefits and the work-life using the HR strategy as a basis.

Answer: B

Question 3

Which of the following is the most accurate statement about the business strategy?

Options :

A : It usually is a secondary consideration in compensation design.

B : It is the company-s plan for competitive positioning of its products or services.

C : It must be written after the company-s operating plans are approved by senior management.

D : It is developed for compensation, benefits and the work-life using the HR strategy as a basis.

Answer: B

Question 4

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

Options :

A : Revenue minus cost of goods sold

B : Expenses plus taxes and depreciation

C : Gross profit minus expenses

D : Cost of goods sold

Answer: A

Question 5

Which of the following is the best example of applying business executive to data analysis?

Options :

A : Compiling data needed to calculate salary budgets and merit increases

B : Identifying trends and key messages emerging over time

C : Reviewing historical trends to complete annual budgets

D : Providing quarterly incentive estimates for accruals

Answer: B

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