Worldatwork Exam CECP Topic 1 Question 74 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 74
Topic #: 1

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

ACompensation costs eventually stabilize and become a consistent percent of revenue.

BCompensation costs and revenue increase at approximately the same rate.

CCompensation costs eventually decrease as a percent of revenue, increasing profit growth.

DCompensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.

Show Suggested Answer

Suggested Answer: C

by Idella at Nov 14, 2024, 11:18 PM

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