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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

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

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

2. To establish disparate treatment in violation of Title VII of the Civil Rights Act of 1964, an employee must prove that the employer intentionally maintains the pay disparity because the employee is a member of a protected class and which of the following?

A) He or she is paid less than employees who are not members of the same protected group.
B) He or she receives a lower wage than a co-worker of the opposite sex.
C) The employer maintains a wage disparity between employees who do unequal, but comparable work.

3. Which of the following is a type of variable pay?

A) Hourly rate
B) Piece rate
C) Salary
D) Commissions

4. Which of the following is the earnings available to equity owners after paying debt and taxes?

A) Operating profit
B) Net income
C) EBIT
D) EPS

5. Which act does the Office of Federal Contract Compliance Programs (OFCCP) enforce?

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

Solutions: