Free Practice WorldatWork CECP Exam Questions 2025

Stay ahead with 100% Free Certified Executive Compensation Professional CECP Dumps Practice Questions

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Total 101 Questions | Updated On: Apr 08, 2025

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Question 1

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

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 2

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

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

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

C : Partner with multiple departments and external consultants and vendors

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

Answer: D

Question 3

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

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

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

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

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

Answer: B

Question 4

What best describes an effective core technique for communicating with executives?

A : Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

B : Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

C : Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

D : Recommend a solution that will solve the issue and explain why it is the best solution available.

Answer: D

Question 5

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

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

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

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

Answer: B

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Total 101 Questions | Updated On: Apr 08, 2025

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