[Jun 18, 2022] CECP Sample with Accurate & Updated Questions [Q22-Q36]

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[Jun 18, 2022] CECP Sample with Accurate & Updated Questions

CECP Exam Info and Free Practice Test | Real4exams

NEW QUESTION 22
What choices are most commonly faced by companies in the decline phase of the business lifecycle?

Whether to improve productivity, obtain new operating capital or generate new sales growth

Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible

Whether to acquire competitors with greater market share or merge with more successful companies

Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand

NEW QUESTION 23
What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

It remains the same.

It decreases because variable costs are increasing.

It increases at the same rate as variable costs.

It becomes increasingly higher as revenues increase.

NEW QUESTION 24
Assessment of current and future staffing needs should be based primarily on what?

Compensation budgets only because staffing cannot exceed the funds available

A combination of organizational goals and budget realities

The consensus of HR management and line management estimates

The opinions of senior leaders in the organization

NEW QUESTION 25
Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?

Reduce compensation expense

Improve program efficacy

Select the best vendors

Compensate employees competitively

NEW QUESTION 26
What is the most likely explanation for why compensation and rewards require a strong grasp of business executive for compensation professionals?

Because the internal and external environments are constantly changing

Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

Because they are emotional issues and stakeholders have many vested interests

Because strong business executive is required for all compensation decisions

NEW QUESTION 27
As a general rule, what are individual contributors most likely to ask about their compensation?

What the take-home pay will be

How their pay compares to co-workers

How the company sets compensation budgets

How the company makes pay decisions that affect them

NEW QUESTION 28
What is the most accurate definition of organizational vision?

A description of who the organization is, where it is headed and what it wants for the future

A written explanation of the intention or purpose of the organization and why it is in business

A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders

A detailed account of the organization’s goals, directions to achieve them and how it will compete

NEW QUESTION 29
“Cost-benefit thinking” is most useful in the context of financial management for purposes of what?

Procurement

Recruiting

Setting priorities

Plan administration

NEW QUESTION 30
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?

500,000

840,000

8,000,000

9,700,000

NEW QUESTION 31
Internal process metrics are most useful in which of the following situations?

Assessing how well the business is running

Determining employee satisfaction levels

Measuring the financial success of the business

Evaluating customer perceptions of products or services

NEW QUESTION 32
Which of the following is a true statement regarding the talent development needs of employees?

If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.

Obtaining and developing skills provides leverage for the employee to seek more compensation.

Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.

NEW QUESTION 33
The Alpha Company was once a strong company that commanded a high percentage of the market it operated in. In recent years, Alpha has been losing market share to competitors in its primary line of business and has been unable to find a competitive strategy to grow and return to profitability. Given its market position, how is Alpha most likely finding the monetary resources to continue operations?

By using cash from other segments of the business

By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

By identifying and duplicating the strategy used by its main competitor.

NEW QUESTION 34
The “return” represented by the Total Shareholder Return (TSR) metric is the increase in what?

Earnings

Market capitalization

Increased market value and reinvested dividends paid

NEW QUESTION 35
What type of equity incentive gives employees the right to purchase company shares at a specified price?

Stock/share options

Stock/share grants

Restricted stock/shares