What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?
Answer : D
Internal process metrics are most useful in which of the following situations?
Answer : A
What best describes the primary purpose of budgeting?
Answer : B
The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?
Answer : B
Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?
Answer : C
Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?
Answer : A
Regarding fixed and variable costs, what are Financeג€™s primary concerns?
Answer : B
What statement is most accurate regarding communication of compensation information?
Answer : A
When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?
Answer : C
What best describes the most effective tactic for getting stakeholdersג€™ attention and buy-in?
Answer : A
When connecting with other business units, what best describes a reason why is it important to keep up to date on organizational challenges?
Answer : B
What statement is most accurate regarding compensation communications with employees at varying levels?
Answer : C
As a general rule, what are individual contributors most likely to ask about their compensation?
Answer : D
Who are you most likely to hear from if there are questions about an employeeג€™s compensation?
Answer : C
How are the compensation communication needs of managers different from those of individual employees?
Answer : B