Practice Test Compensation

Which of the following users does the custom formula pertain to? -IF 2014 Annual Performance Review equals 5%, THEN {Salary.Current}*0.1, ELSE 0 1) Anyone who received an overall rating of a 5 on the 2014 Annual Performance Review 2) Anyone who received a rating of 5 on any section of the 2014 Annual Performance Review 3) Anyone who received an overall rating of a 5 or greater on the 2014 Annual Performance Review 4) None of the above

*

Why can't Merit Increase be removed from the Display Columns field? 1) Merit Increase is a selected component on the General Page of the template 2) Merit Increase must be part of every base template 3) The column was renamed so now it cannot be removed 4) The administrator doesn't have the necessary permissions to remove items from the Display Columns field

* 1) Merit Increase is a selected component on the General Page of the template

If your client did not want to include the historical data provided in a graph, where could they go to turn them off? 1) Compensation Template > Layout > Column Layout 2) Compensation Template > Layout > Expanded View Layout 3) Compensation Task > Layout > Expanded View Layout 4) Compensation Template > Layout > Additional Options

* 2) Compensation Template > Layout > Expanded View Layout

Which of the following is not an option when creating a base template? 1) Requiring comp managers to spend no more than their budget allows 2) Alllowing compensation managers to exceed their budgets, but only by a certain percentage 3) Giving managers the ability to increse the budgets of their direct reports 4) Automatically paying any merit increase that exceeds an employee's salary range in a lump sum

* 3

How are custom compensation fields populated? 1) The information must be entered on the employee's User Record 2) The information must be uploaded using the DLW 3) The information must be uploaded by CSOD employees 4) None of the above

* 3) is a project

Which of the following adjustment guidelines will be applied to the compensation task? -Task Period: 8/2/2014-8/22/2014 -Compensation Period: 7/1/2013-6/30/2014 1) Merit increase adjustment guideline with an effective period of 8/2/2014-8/22/2014 2) Bonus adjustment guideline with an effective period of 1/1/2013-8/1/2013 3) cost of living adjustment guideline with an effective period of 1/1/2014-12/31/2014 4) ISO adjustment guideline with an effective period of 6/30/2013-7/1/2014

* 4

Why would there be a warning icon in the Plan Details of a Compensation Plan? 1) The compensation manager exceeded the budget for base components 2) When sent for approval, the yellow row was denied 3) The employee is no longer an active user in the system 4) Compensation Manager exceeded the recommendation adjustment for one of the base components

* 4

If your client did not want to include the comp analytics graphs seen in the bottom right corner of the image above, where could they go to turn them off? 1) Compensation Template > Layout > Column Layout 2) Compensation Template > Layout > Expanded View Layout 3) Compensation Task > Layout > expanded View Layout 4) Compensation Template > Layout > Additional Options

* 4) Compensation Template > Layout > Additional Options

An Administrator can decrease a compensation manager's budget, but they cannot increase the budget 1) True 2) False

* False

Sally's Sorbets gives each of their packaging plants a set amount that can be used to give bonuses to the highest performers each year. The Compensation Admin isn't sure how to set a budget for bonuses because some compensation managers will have several high performers while other compensation managers may not have any. Which of the following budget types would you recommend the admin to make sure each manager has the budget they need while ensuring no plant exceeds their total budget? 1) Cascaded 2) sum of Targets 3) % of Base 4) Fixed Amount

* either 1 or 2

The tag SALARY.CURRENT is used to display the employee's salary prior to any adjustments that may occur in a compensation task 1) True 2) False

*1) True

Your client wants to ensure that bonuses were only paid out to the highest performers in the organization. Which report will NOT provide them the information they seek? 1) Individual Targets Report 2) Compensation Adjustment Report 3) Pay for Performance Report 4) All of the above reports will provide the information

*2

Which of these reports will not be affected by the completion of a compensation task? 1) Employee Salary Range Report 2) Deferral Payments Report 3) Adjustment Guideline Report 4) Compensation Adjustment Report

*3

At Connie's Call Center, customer service representatives are eligible for a $500 bonus each quarter based on their attendance and their manager's discretion. What type of adjustment guideline would you create to meet this aspect of Connie's compensation process? 1) Recommendation Matrix 2) Custom Formula 3) Specific Amount 4) Individual Target

*3)

Which email trigger would you recommend your client uses for their initial communication to compensation managers who have a task to complete? 1) Compensation Task Completion 2) Compensation Task Due: Assignee 3) Compensation Task Due: Task Approver 4) Compensation Task Assigned

*4

In your client's organization, key members of the management team have bonus payouts tied to their accomplishment of business objectives. The challenge is that the bonus amounts are different for every person and the objectives are not managed in their CSOD portal. Is there any way to pull this information? 1) No. Unless the objectives are managed in Performance - Goals, they can't be included in a Compensation Task 2) No. The bonuses cannot be included in a Compensation Task because the payout amounts are different for every manager 3) Yes. If the bonus amounts are added as Individual Targets, they can be included in a Compensation Task 4. Yes. The client will need to create individual adjustment guidelines for each manager to accommodate the different bonus amounts

*Either 3 or 4

At Monte's Marker Manufacturing, managers have been instructed to provide employees who received the highest performance ratings with the greatest merit increase, while employees who received low performance ratings should not receive anything. What type of adjustment guideline would you create to support this facet of Monte's compensation process? 1) Recommendation Matrix 2) Custom Formula 3) Specific Amount 4) Individual Target

*Either 1) or 2)

A Good consultant would recommend his or her client not Display Ineligible Employees because, if displayed, there is no way to hide the employees in a compensation task. 1) True 2) False

*either 1) True

When an employee earns a bonus at your client's organization, 50% of the bonus is a cash award and the other 50% is contributed to their 401k. What compensation feature will your client need to use to accommodate this type of bonus payout? 1) Deferral Guidelines 2) Adjustment Guidelines 3) Individual Targets 4) None of the above

*either 14

Custom Compensation fields can be included in standard compensation statements 1) True 2) False

*false? 1) True

Your client wants to know how many compensation plans were denied. Which of the following reports can help? 1) Compensation Audit History Report 2) Compensation Statement Report 3) Pay for Performance Report 4) Compensation Modeling Report

1) Compensation Audit History Report -Compare to a Transcript Approval History it will show when the plan was denied like approval history

Which of the following methods cannot be used to update an employee's base salary? 1) Enter the new salary on the employee's User Record 2) Add the new salary information in Employee Salary Management 3) Upload the salary information using the Data Load Wizard 4) Complete a Compensation Task that includes base components

1) Enter the new salary on the employee's user record

Which report will NOT provide the information necessary to allow for bonuses to be only paid out to the highest performers in the organization? 1) Individual Targets Report 2) Compensation Adjustment Report 3) Pay for Performance Report 4) All of the above reports will provide the information requested by the client

1) Individual Targets Report

Which of the following about share prices are true? 1) Share prices for a future date may be deleted 2) A share price for equity type LTI must be entered on the Share Price page 3) Share prices can only be entered for dates in the past because that's the only way to know the value 4) None of the statements are true

1) Share prices for a future date may be deleted

An administrator can add equity components to the portal 1) True 2) False

1) True

Changes made to a deferral guideline after a Compensation Task has been started will not affect the compensation task 1) True 2) False

1) True

Clients can provide their employees with a standard compensation statement, a custom compensation statement, or both. 1) True 2) False

1) True

Once added to a Compensation Task, Compensation Managers cannot be removed 1) True 2) False

1) True

The Compensation Task Due email triggers will only fire to people who have not yet completed their Compensation Task 1) True 2) False

1) True

The Compensation Task Reset Email Trigger is used to notify compensation managers when their submitted plans have been modified by an approver 1) True 2) False

1) True

The promotion Base Type cannot be inactivated 1) True 2) False

1) True

Using the Promotion component in a Compensation Task allows compensation managers to update a user's grade, position, and location OUs. The changes are made to the User Record as soon as the Task is complete. 1) True 2) False

1) True

Your client would like to change the label of the Current Salary/Rate column to Current Base. This can be done on the Compensation Template > Layout page 1) True 2) False

1) True

At Jennifer's Jelly Beans, employees who receive an Exceeds expectations rating on their performance review should be given a 10% merit increase unless the employee's hire date is less than one year. Employees who receive an Exceeds Expectations rating and have been with the company for less than a year should only receive a 5% increase. What type of adjustment guideline would you create to support this requirement of Jennifer's compensation process? 1) Recommendation Matrix 2) Custom Formula 3) Specific Amount 4) Individual Target

2)

If the Availability page of your compensation task only said All employees in Division: PH Awesome, which of the following was NOT selected to fill the role of Compensation Manager? 1) Manager 2) Administrator 3) Matrix Manager 4) HR Business Partner

2)

Which of the following statements about bonus types is TRUE? 1) Any bonus type that has not been used in a Compensation Task may be deleted 2) Any bonus type that has not bee used in an adjustment guideline, a compensation template, or a compensation task may be deleted 3) Any custom bonus type that has not bee used in a compensation template or a compensation task may be deleted 4) Any custom bonus type that has not been used in an adjustment guideline, a compensation template, or a compensation task may be deleted

2) Any bonus type that has not bee used in an adjustment guideline, a compensation template, or a compensation task may be deleted

In a recommendation matrix the rows are defined by the metric or metrics selected. What is used to define the columns? 1) Performance Review Rating 2) Compa-Ratio 3) Location OU 4) Grade OU

2) Compa-Ratio

Clients should create a single adjustment guideline that includes all base components (merit increase, market adjustment, etc.) used in a compensation task. 1) True 2) False

2) False

Compensation Custom Fields may include numeric, date, and short text box field types. 1) True 2) False

2) False

Cornerstone maintains all currency conversion rates on behalf of their clients 1) True 2) False

2) False

If a base type is inactivated, it will be removed from all In Progress Compensation Tasks. 1) True 2) False

2) False

On the Edit Salary Details page in Employee Salary Management, the Effective Date will always be the same as the Last Updated Date. 1) True 2) False

2) False

When setting the Availability for a Compensation Task, you are identifying the users whose salaries will be adjusted in the task. 1) True 2) False

2) False

The Deferral Payments Report provides a list of deferred payments for all base components 1) True 2) False

2) False -because you can list deferred payments for Bonus and Equity, not just Base

When can a custom compensation statement be edited? 1) Never 2) Only until it is added to a compensation task 3) Only until the compensation statement date, for the compensation task it has been added to, has occurred 4) Custom compensation statements can be edited at any time

2) Only until it is added to a compensation task

which of the following statements about compensation tags is FALSE? 1) Compensation tag management includes tags for performance review, competency assessment, and succession tasks 2) Compensation tags for custom compensation fields will only be visible to administrators who are included in the field's availability 3) When editing a compensation tag, an administrator can change the tag name and field description 4) None of the statements are false

3

If your client did not want to include the budget summary section in their compensation task, what would they need to do to make sure it didn't appear? 1) The budget summary cannot be removed 2) Go to Compensation Task > Layout > Expanded View Layout and remove Budget Summary from the display fields 3) Go To Compensation Task > Layout > Budget Layout and deselct all components in the COmponent Visibility field 4) Set all component budgets to None in Compensation Templates, then go to Compensation Task > Layout > Budget Layout and deselct all components in the COmponent Visibility field

3)

What does the P next to the Merit Increase field of a Compensation Plan signify? 1) The merit increase adjustment guideline includes a proration rule 2) The compensation task includes a promotion component 3) The base template includes a proration rule 4) The base template includes the promotion component

3)

What is the maximum number of Base Types per portal? 1) 4 active and inactive base types 2) 25 active and inactive base types 3) 29 active and inactive base types 4) 25 active base types

3) 29 active and inactive base types

Which report would you recommend a client run before they begin their Compensation Task? 1) Compensation Statement Report 2) Adjustment Guideline Report 3) Compensation Promotion Report 4) Pay for Performance Report

3) Adjustment Guideline Report -Everything else is run after a task. -Important to see which guidelines will pull into the task, make sure the guidelines

Which report will prevent overspending? 1) Compensation EEO Report 2) Compensation Promotion Report 3) Budget Status Report 4) Compensation Audit History Report

3) Budget Status Report

Which of the following statements about creating a compensation task is TRUE? 1) You may add as many base, bonus, or equity templates as you need as long as no more than three templates are added 2) Only plan approvers may be given access to edit a Compensation Manager's plan 3) Only one template of each type-base, bonus, or equity-may be added to a compensation task 4) Locking a user's status will prevent any changes to User Records from affecting a compensation plan that is in progress

3) Only one template of each type-base, bonus, or equity-may be added to a compensation task

Which of the following statements about a portal's default compensation currency is true? 1) Once a default currency is selected it cannot be changed 2) A portal's default compensation currency must always be set to US dollars 3) The Default currency is set in Corporate Preferences 4) Teh default currency can be set for each division

3) The default currency is set in Corporate Preferences

Which of the following methods can be used to update an employee's compensation currency? 1) Upload a new currency using the Employee Salary Upload in DLW 2) Upload a new currency using the User upload in DLW 3) Upload a new currency using either the User or Employee Salary in DLW 4) None of the above

3) Upload a new currency using either the User or Employee Salary in DLW

Each manager at Anna's Accountants receives $5000 each year to use for market adjustments for the employees who report to them, regardless of how many employees they have or their salaries. Which budget type should the Compensation Admin use for the market adjustment component? 1) Cascaded 2) Sum of Targets 3) % of Base 4) Fixed Amount

4

Which of the following eligibility rules cannot be used in a Compensation Template? 1) All employees in Division: Dickens AND Hire Date greater than 1/1/2014 2) All employees in Division: Dickens OR Hire Date greater than 1/1/2014 3) All employees in Division: Dickens AND Last Performance Review Avg Score greater than 80% 4) All employees in Division: Dickens AND Hire Date greater than 1/1/2014 OR Last Performance Review Avg Score greater than 80%

4) All employees in Division: Dickens AND Hire Date greater than 1/1/2014 OR Last Performance Review Avg Score greater than 80%

Which report can help your clients plan for the compensation Adjustments managers may want to make in the corning year? 1) Compensation Promotion Report 2) Deferral Payments Report 3) Budget Status Report 4) Compensation Modeling Report

4) Compensation Modeling Report -Modeling is basically a sample of all $ in compensation, promo and def are too narrow,

Which Adjustment Guidelines will be applied to the Compensation Task with the following periods: -Task Period: 8/2/2014-8/22/2014 -Compensation Period: 7/1/2013-6/30/2014 1) The merit increase adjustment guideline with an effective period of 8/2/2014-8/22/2014 2) The bonus adjustment guideline with an effective period of 1/1/2013-8/1/2013 3) Cost of Living adjustment guideline with effective period of 1/1/2014-12/31/2014 4) ISO Adjustment Guideline with period of 6/30/2013-7/1/2014

4) ISO Adjustment Guideline with period of 6/30/2013-7/1/2014

Which of the following statements about individual targets is FALSE? 1) Individual targets are useful when the goal payouts vary from person to person rather than from OU to OU 2) Individual targets can be set using a currency other than the employee's default currency 3) Individual targets can be set as a percent of an employee's base salary or as a fixed amount 4) Individual targets can be set for base components

4) Individual targets can be set for base components

If an employee meets the availability criteria for two merit increase adjustment guidelines in the same Compensation Task, what can Compensation Managers expect to see? 1) The two adjust guidelines will cancel each other out and no suggested merit increase will be provided for that employee 2) The suggested merit increase from each Adjustment Guideline will be added together to create a new Suggested Merit Increase for the employee 3) The Adjustment Guideline that was created most recently will be applied 4) The Adjustment Guideline that provides the greater merit increase will be applied

4) The Adjustment Guideline that provides the greater merit increase will be applied

Which of the following Configurations for Salary Structures might you find in a client's portal? 1) Primary OU, Division, Secondary OU, Position 2) Primary OU, Position, Secondary OU, Division, Tertiary OU, Location 3) Primary OU, Grade, Secondary OU, Cost Center 4) Primary OU, Division 5) All of the above

5) All of the above

Why wouldn't the 'Dynamically update value in Compensation Task' be selected in an adjustment guideline? 1) The Adjustment Guideline is discretionary 2) Dynamic updates aren't available with Custom Formulae 3) The Custom Formula does not include a base component 4) none of the above

Either 1)

Where would an administrator click to sen an approval condition?

Left of trash can next to Manager

Where would you click to compare Oliver Twist's Compensation Budget to what he has allocated in his compensation plan?

edit oliver twist?

Which of the following statements is a possible reason why the lump sum column would not be editable in a Compensation Task > Plan Details section? 1) The base template used for this task includes an automatic lump sum payment for any merit increase that exceeds the employee's salary range 2) There is no budget for the lump sum component 3) There is no adjustment guideline for the lump sum component 4) None of the above

either 1

Which of the following statements about custom compensation statements is FALSE? 1) Custom compensation statement sections can be translated into multiple languages 2) Custom compensation statements may include a tag for a custom formula 3) Custom compensation statement sections can be configured so that they are only displayed to some, but not all, employees 4) None of the statements are false

either 1) Custom compensation statement sections can be translated into multiple languages

All base components, with the exception of Promotion, can be prorated as part of a compensation Task 1) True 2) False

either 1) True

Which of the following standard fields cannot be added to a compensation template? 1) Performance Review section score 2) Aggregated training hours 3) Competency Assessment overall score 4) SMP metric

either 2

Which of the following Performance Reviews will be included in the Compensation Task with the following criteria: -Task Period: 8/2/2014-8/22/2014 -Compensation Period: 7/1/2013-6/30/2014 1) The Dickens 360 review with a review period of 8/2/2014-8/22/2014 2) The 2014 annual review with a review period of 7/30/2013-6/1/2014 3) The 2014 mid-year review with a task period of 8/2/2014-8/22/2014 4) The Executive performance evaluation with a review period of 1/1/2014-12/31/2014

either 2)

If your client did not want to include the budget summary section in their compensation task, what would they need to do to make sure it didn't appear? 1) The budget summary cannot be removed 2) Go to Compensation Task > Layout > Expanded View Layout and remove Budget Summary from the Display fields 3) Go to Compensation Task > Layout > Budget Layout and deslect all components in the Component Visibility field 4)Set all component budgets to None in Compensation templates, then go to Compensation Task > Layout > Budget Layout and deselect all components

either 4)Set all component budgets to None in Compensation templates, then go to Compensation Task > Layout > Budget Layout and deselect all components