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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Employer-sponsored death benefits are most commonly based on which of the following?

A) The employee's annual salary
B) The employee's health history
C) The employee's premium contributions
D) The size of the employee's family

2. 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 decreases because variable costs are increasing.
C) It becomes increasingly higher as revenues increase.
D) It remains the same.

3. Until what age does the FLSA limit the number of hours of nonhazardous work? (...as long as the overtime pay provisions are met)

A) 15 years of age
B) 18 years of age
C) 16 years of age
D) 14 years of age

4. Which of the following are the two primary elements of benefits?

A) Defined contribution and defined benefits plans
B) Pay for time not worked and income protection programs
C) Unemployment and disability
D) Mental health coverage and health care coverage

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

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

Solutions: