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WorldatWork Regulatory Environments for Compensation Programs Sample Questions (Q87-Q92):
NEW QUESTION # 87
What statement is most accurate regarding communication of compensation information?
- A. Compensation professionals should anticipate the level of the audience and tailor messages to their needs.
- B. Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.
- C. Compensation terms are well-known and easily understood by most stakeholders.
- D. The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.
Answer: A
NEW QUESTION # 88
What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?
- A. Predictive modeling
- B. Business analytics
- C. Business forecasting
- D. Statistical analysis
Answer: B
NEW QUESTION # 89
The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was
10,500,000. What was the economic value added (EVA) using the EVA formula?
- A. 500,000
- B. 840,000
- C. 9,700,000
- D. 8,000,000
Answer: C
NEW QUESTION # 90
What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?
- A. It decreases because variable costs are increasing.
- B. It increases at the same rate as variable costs.
- C. It remains the same.
- D. It becomes increasingly higher as revenues increase.
Answer: D
NEW QUESTION # 91
Which of the following is the earnings available to equity owners after paying debt and taxes?
- A. EBIT
- B. Net income
- C. Operating profit
- D. EPS
Answer: B
NEW QUESTION # 92
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