EMT Practice Test

1. Question Content...

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Question1: What best describes the primary purpose of budgeting?

Question2: Which of the following is primarily focused on giving special attention to employee actions, efforts, behavior or performance?

Question3: What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

Question4: Understanding basic organization design principles is an example of what key competency for compensation professionals?

Question5: What type of equity incentive gives employees the right to purchase company shares at a specified price?

Question6: Which of the following is a type of variable pay?

Question7: What is a primary objective of profit-sharing and performance-sharing variable pay plans?

Question8: Regarding fixed and variable costs, what are Finance's primary concerns?

Question9: Which of the following is a type of variable pay?

Question10: Which of the following best describes present value?

Question11: What choices are most commonly faced by companies in the decline phase of the business lifecycle?

Question12: What question is answered by the organization's mission statement?

Question13: What best describes a use of strategic analysis?

Question14: To ensure appropriate funding levels, the compensation professional must generally do which of the following?

Question15: Regarding market position, a business with a high market share but low growth potential is typically referred to as what?

Question16: Assessment of current and future staffing needs should be based primarily on what?

Question17: Using efficient and cost-effective approaches to integrate technology into the workplace is most likely to do what?

Question18: The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary. What stage of the business lifecycle is XYZ most likely in?

Question19: The Alpha company ships an order to a customer on March 1st and invoices the customer for the product with the shipment, with payment terms of net 30 days. The customer's payment is received on April 5th. The payment clears the bank and shows on Alpha's account on April 8th. If Alpha is using accrual accounting, when does it record the revenue for this sale?

Question20: Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?

Question21: What best describes what forecasting helps the organization to do?

Question22: The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

Question23: What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?

Question24: Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?

Question25: What is the most accurate definition of organizational vision?

Question26: Which of the following statements is most accurate regarding pay grades/bands?

Question27: Cash compensation is a reward intended to provide what type of motivation?

Question28: What is the top line or starting point of an organization's income?

Question29: Who are you most likely to hear from if there are questions about an employee's compensation?

Question30: What challenge is most likely faced by a business with low market share and high growth potential?

Question31: Which type of variable pay is best described by this statement: Criteria are discretionary and often defined in broad terms such as "exceptional customer service"?

Question32: Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?

Question33: How do commissions typically differ from annual incentives for non-executive employees?

Question34: 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?