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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Under the Equal Pay Act, which is an acceptable defense to justify differences between the rates of pay for men and women assigned to the same job?

A) The women are all graduates of the most prestigious schools, and graduates from those schools command higher salaries.
B) The male employees have substantially more education than the female employees.
C) All of the women have some professional certification or registration, whereas none of the men have comparable credentials.
D) The differential is due to the fact that the men have more seniority with the employer.

2. What information do EEO posters provide to employees?

A) Various federal minimum wage rules
B) Laws and procedures for filing complaints
C) Laws and rules for employee polygraph protection
D) Employee rights under the H-2A Program

3. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working a holiday or weekend
B) When working in more than one department
C) When working in locations other than the corporate office
D) When working less time than his or her normal schedule

4. 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 remains the same.
D) It becomes increasingly higher as revenues increase.

5. What best describes the primary purpose of budgeting?

A) Limiting spending to a fixed percentage of organizational revenue
B) Making choices about spending based on expectations of performance
C) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
D) Increasing profitability of the business annually to maximize shareholder/owner value

Solutions: