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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A) It increases at the same rate as variable costs.
B) It remains the same.
C) It becomes increasingly higher as revenues increase.
D) It decreases because variable costs are increasing.

2. When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?

A) Individuals with power in the organization who have the authority to overrule the concerns of opponents
B) The most senior leader with the highest level of authority
C) Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives
D) No one person. Identify your stakeholders and work to achieve consensus among the majority.

3. What are usual, customary and reasonable charges (UCR)?

A) The charges that are typically paid up front by a plan participant for services rendered.
B) The charges that are published annually in the Global Insurers' Medical Cost Comparison Guide
C) The charges that are allowable for any given medical procedure with no pre-treatment authorization
D) The charges that an insurance carrier determines are normal for a particular medical procedure within a specific geographical area

4. Which of the following acts is focused on employers with construction contracts with the government?

A) Sherman Antitrust Act
B) McNamara-O'Hara Act
C) Davis-Bacon Act
D) National Labor Relations Act

5. As a general rule, what are individual contributors most likely to ask about their compensation?

A) How their pay compares to co-workers
B) How the company sets compensation budgets
C) What the take-home pay will be
D) How the company makes pay decisions that affect them

Solutions: