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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following scenarios best describes a contract worker?

A) An accounts payable specialist who works at the company site utilizing an internal A/P system and pays vendors according to company procedures.
B) A technician who works a scheduled shift and performs tasks as assigned according to specifications.
C) A computer programmer who telecommutes, uses her own equipment and works for multiple employers

2. Regarding fixed and variable costs, what tends to happen as revenue increases?

A) Variable costs decrease
B) Fixed costs decrease
C) Fixed costs remain the same and consume a lower percent of revenue
D) Variable costs increase and consume a higher percent of revenue

3. Which of the following is appropriate when an employee is required by the employer to attend training as a condition of employment?

A) Only educational programs focused on remedial education (up to eighth grade) can be excluded from the 40-hr criteria for time and a half.
B) Appropriate study time does not count as hours worked regardless of the educational level of the training program.
C) No training time is considered hours worked even if it is a condition of employment, since the employee is free to leave the company.
D) Even when the training is required, as long as the classes are outside working time and not on company property, they are not hours worked.

4. What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?

A) Automatic
B) General
C) Merit
D) Cost of living

5. Which of the following best describes present value?

A) The current value of holdings
B) The difference between the desired value in the future and the current value as a percentage of the desired value
C) The desired value in the future and what needs to be invested today to realize that amount
D) The current value of holdings and how much it will grow over time at a given rate of return

Solutions: