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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

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

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

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

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

3. Which of the following acts redefines guidelines for disparate impact cases?

A) Americans with Disabilities Act
B) Vocational Rehabilitation Act
C) Civil Rights Act of 1991
D) Age Discrimination in Employment Act

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

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

5. What is a primary objective of profit-sharing and performance-sharing variable pay plans?

A) To reward individual employees for some significant contribution
B) To increase employee identification with the organization's success
C) To achieve organizational cost savings through base pay reductions
D) To defer compensation expenses to future reporting periods

Solutions: