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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What are usual, customary and reasonable charges (UCR)?

A) The charges that are allowable for any given medical procedure with no pre-treatment authorization
B) The charges that an insurance carrier determines are normal for a particular medical procedure within a specific geographical area
C) The charges that are typically paid up front by a plan participant for services rendered.
D) The charges that are published annually in the Global Insurers' Medical Cost Comparison Guide

2. What best describes a use of strategic analysis?

A) Pricing your products appropriately
B) Understanding your business and its competitive strengths and weaknesses
C) Evaluating prior year performance for the narrative portion of annual financial reports
D) Forecasting profit, growth and investment performance to develop realistic budgets

3. Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

A) In the details of their individual compensation packages
B) In the overall program objectives
C) In the methods and processes used to make pay decisions
D) In the differences in pay levels for the different levels of the organization

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

5. What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?

A) Business forecasting
B) Statistical analysis
C) Business analytics
D) Predictive modeling

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