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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Regarding fixed and variable costs, what are Finance's primary concerns?

A) Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
B) Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.
C) Fixed costs and variable costs are equally important and both should be kept to a minimum.
D) Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

2. What is the minimum age for an individual to qualify for protection under the Age Discrimination in Employment Act?

A) 45
B) 50
C) 55
D) 40

3. Which of the following agencies enforces the FLSA?

A) Equal Employment Opportunity Commission
B) Department of Labor
C) National Labor Relations Board
D) Office of Federal Contract Compliance Programs

4. What best describes what forecasting helps the organization to do?

A) Recognize possible issues and concerns that will drive budget planning
B) Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
C) Prepare quarterly and annual reports and their associated statements
D) Withhold payroll taxes for all elements of compensation

5. How does the Fair Labor Standards Act require employers to pay their nonexempt employees?

A) Time and a half for all hours worked over 8 in the workday
B) Double time for work on Saturday
C) Time and a half for all hours worked over 40 in the workweek
D) Double time for time worked on Sunday

Solutions: