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Free CCP Practice Questions

10 free, exam-style Certified Compensation Professional (CCP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CCP practice test to study every exam domain.

Question 1

A company pays base salaries at the 50th percentile but offers above-market variable pay opportunities. This approach BEST describes:

  1. A below-market total rewards strategy with competitive base pay
  2. A match strategy for base pay with a lead strategy for total cash
  3. A lead strategy for base pay with below-market incentives
  4. A lag strategy for total compensation with market adjustments
Show answer & explanation

Correct answer: B - A match strategy for base pay with a lead strategy for total cash

Question 2

An exempt employee misses two hours of work on Wednesday for a doctor's appointment but works the rest of the week. The employer deducts two hours of pay. This deduction is:

  1. Required by FLSA for accurate timekeeping
  2. Permissible under the salary basis test
  3. Permissible only if the employee is in their first 90 days
  4. An improper deduction under FLSA salary basis requirements
Show answer & explanation

Correct answer: D - An improper deduction under FLSA salary basis requirements

Question 3

A senior software engineer with 10 years of experience earns $105,000. A newly hired software engineer with 1 year of experience negotiated a starting salary of $100,000. This is an example of:

  1. Pay compression
  2. Market rate adjustment
  3. Salary inversion anomaly
  4. Compensation band overlap
Show answer & explanation

Correct answer: A - Pay compression

Question 4

An employee earns $52,000 in a pay grade with a midpoint of $60,000. The compa-ratio is:

  1. 0.867 or 86.7%
  2. 1.00 or 100%
  3. 0.743 or 74.3%
  4. 1.154 or 115.4%
Show answer & explanation

Correct answer: A - 0.867 or 86.7%

Question 5

Employee A has a performance rating of 'Exceeds Expectations' and a compa-ratio of 0.85. Employee B has a performance rating of 'Exceeds Expectations' and a compa-ratio of 1.10. Using a standard merit matrix, Employee A should receive:

  1. The same increase as Employee B
  2. No increase because their compa-ratio is below 1.0
  3. A larger increase than Employee B
  4. A smaller increase than Employee B
Show answer & explanation

Correct answer: C - A larger increase than Employee B

Question 6

An employee holds NQSOs with a strike price of $30. The current market price is $50. If the employee exercises 1,000 options, the ordinary income recognized is:

  1. $30,000
  2. $50,000
  3. $20,000
  4. $80,000
Show answer & explanation

Correct answer: C - $20,000

Question 7

Survey data reports a median of $60,000 effective January 1. Using a 3% annual increase rate, the aged value on July 1 (0.5 years later) is CLOSEST to:

  1. $61,800
  2. $60,891
  3. $63,000
  4. $60,000
Show answer & explanation

Correct answer: B - $60,891

Question 8

Compensation data for a department includes: $42K, $45K, $47K, $49K, $140K. The mean is $64,600 and the median is $47,000. Which measure BEST represents the typical salary?

  1. The mode, because it identifies the most common salary
  2. Both are equally representative
  3. The mean, because it uses all data points
  4. The median, because it is not distorted by the $140K outlier
Show answer & explanation

Correct answer: D - The median, because it is not distorted by the $140K outlier

Question 9

An executive has a base amount of $400,000. Their total parachute payments upon a change in control are $1,500,000. The excess parachute payment under Section 280G is:

  1. $300,000
  2. $1,100,000
  3. $1,500,000
  4. $700,000
Show answer & explanation

Correct answer: B - $1,100,000

Question 10

An executive asks the compensation analyst to manipulate survey data to justify a predetermined pay level for a friend being hired. The analyst should:

  1. Partially manipulate the data as a compromise
  2. Manipulate the data but report it to HR later
  3. Comply with the request since the executive has authority
  4. Refuse the request and document the interaction
Show answer & explanation

Correct answer: D - Refuse the request and document the interaction

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