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B1 Questions and Answers

Question # 1

Why are lump-sum increases generally used?

A.

To control annual fixed costs from base pay adjustments

B.

To elevate employees who are below the midpoint in the range

C.

To reward employees under short-term incentive plans

D.

To make up for benefits not provided by the organization   

Question # 2

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

A.

Variable costs decrease

B.

Fixed costs decrease

C.

Variable costs increase and consume a higher percent of revenue

D.

Fixed costs remain the same and consume a lower percent of revenue

Question # 3

What best describes an effective core technique for communicating with executives?

A.

Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

B.

Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

C.

Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

D.

Recommend a solution that will solve the issue and explain why it is the best solution available.

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