Certified Sales Compensation Professional (CSCP) Practice
Exam - 100 Questions
1. Which organization administers the Certified Sales Compensation
Professional (CSCP) certification?
A) WorldatWork
B) Sales Management Association
C) Incentive Federation
D) Certified Compensation Professional Institute
ANSWER: A
EXPLANATION: WorldatWork administers the CSCP certification as part of its
total rewards certification portfolio.
2. The primary goal of sales compensation design is to:
A) Minimize company costs
B) Maximize sales force satisfaction
C) Align sales behaviors with business objectives
D) Simplify administrative processes
ANSWER: C
EXPLANATION: Sales compensation should motivate behaviors that support
business strategy and objectives.
3. Which component of sales compensation provides income stability?
A) Base salary
B) Commission
C) Bonus
D) SPIFFs
ANSWER: A
EXPLANATION: Base salary provides stable income regardless of sales
performance.
4. A "draw against commission" arrangement means:
A) Advanced payment recovered from future commissions
B) Non-recoverable advance
C) Guaranteed minimum payment
D) Loan to sales representatives
ANSWER: A
EXPLANATION: A draw is an advance that must be repaid from future earned
commissions.
5. The "80/20 rule" in sales compensation typically refers to:
A) 80% salary, 20% variable pay
B) 80% of sales from 20% of reps
, C) 80% administrative, 20% strategic work
D) 80% individual, 20% team incentives
ANSWER: B
EXPLANATION: Often 80% of sales come from 20% of the sales force, affecting
compensation design.
6. Which sales compensation plan type pays a fixed percentage of sales
revenue?
A) Salary only
B) Commission only
C) Salary plus bonus
D) Salary plus commission
ANSWER: B
EXPLANATION: Commission-only plans pay a fixed percentage of sales.
7. What is "on-target earnings" (OTE)?
A) Minimum guaranteed earnings
B) Expected earnings at 100% quota achievement
C) Maximum possible earnings
D) Average historical earnings
ANSWER: B
EXPLANATION: OTE represents expected total compensation at 100% quota
attainment.
8. A "sales accelerator" is:
A) Higher commission rate above quota
B) Sign-on bonus
C) Quarterly bonus
D) Team incentive
ANSWER: A
EXPLANATION: Accelerators increase commission rates for performance above
quota.
9. Which metric is most appropriate for measuring sales productivity?
A) Revenue per salesperson
B) Customer satisfaction scores
C) Number of sales calls
D) Expense ratios
ANSWER: A
EXPLANATION: Revenue per salesperson measures individual productivity.
10. The "rule of thumb" for sales compensation budget as percentage of
revenue is typically:
A) 1-3%
B) 5-10%
, C) 15-20%
D) 25-30%
ANSWER: B
EXPLANATION: Sales compensation typically ranges from 5-10% of revenue,
varying by industry.
11. Which commission formula uses different rates for different products?
A) Flat rate commission
B) Tiered commission
C) Differential commission
D) Graduated commission
ANSWER: C
EXPLANATION: Differential commission pays different rates for different
products/categories.
12. A "recoverable draw" differs from a "non-recoverable draw" in that:
A) It must be repaid
B) It's treated as salary
C) It's not taxed
D) It's only for new hires
ANSWER: A
EXPLANATION: Recoverable draws must be repaid from future commissions.
13. Which quota setting method uses historical performance plus growth
factor?
A) Top-down
B) Bottom-up
C) Historical plus
D) Market-based
ANSWER: C
EXPLANATION: Historical plus adds a growth percentage to past performance.
14. The "sales compensation policy document" should include:
A) Payment terms and conditions
B) Quota setting methodology
C) Dispute resolution process
D) All of the above
ANSWER: D
EXPLANATION: All these elements should be documented in the policy.
15. Which measure helps prevent "sandbagging"?
A) Quarterly quotas
B) Monthly quotas
C) Annual quotas with quarterly reviews
D) Rolling quotas
Exam - 100 Questions
1. Which organization administers the Certified Sales Compensation
Professional (CSCP) certification?
A) WorldatWork
B) Sales Management Association
C) Incentive Federation
D) Certified Compensation Professional Institute
ANSWER: A
EXPLANATION: WorldatWork administers the CSCP certification as part of its
total rewards certification portfolio.
2. The primary goal of sales compensation design is to:
A) Minimize company costs
B) Maximize sales force satisfaction
C) Align sales behaviors with business objectives
D) Simplify administrative processes
ANSWER: C
EXPLANATION: Sales compensation should motivate behaviors that support
business strategy and objectives.
3. Which component of sales compensation provides income stability?
A) Base salary
B) Commission
C) Bonus
D) SPIFFs
ANSWER: A
EXPLANATION: Base salary provides stable income regardless of sales
performance.
4. A "draw against commission" arrangement means:
A) Advanced payment recovered from future commissions
B) Non-recoverable advance
C) Guaranteed minimum payment
D) Loan to sales representatives
ANSWER: A
EXPLANATION: A draw is an advance that must be repaid from future earned
commissions.
5. The "80/20 rule" in sales compensation typically refers to:
A) 80% salary, 20% variable pay
B) 80% of sales from 20% of reps
, C) 80% administrative, 20% strategic work
D) 80% individual, 20% team incentives
ANSWER: B
EXPLANATION: Often 80% of sales come from 20% of the sales force, affecting
compensation design.
6. Which sales compensation plan type pays a fixed percentage of sales
revenue?
A) Salary only
B) Commission only
C) Salary plus bonus
D) Salary plus commission
ANSWER: B
EXPLANATION: Commission-only plans pay a fixed percentage of sales.
7. What is "on-target earnings" (OTE)?
A) Minimum guaranteed earnings
B) Expected earnings at 100% quota achievement
C) Maximum possible earnings
D) Average historical earnings
ANSWER: B
EXPLANATION: OTE represents expected total compensation at 100% quota
attainment.
8. A "sales accelerator" is:
A) Higher commission rate above quota
B) Sign-on bonus
C) Quarterly bonus
D) Team incentive
ANSWER: A
EXPLANATION: Accelerators increase commission rates for performance above
quota.
9. Which metric is most appropriate for measuring sales productivity?
A) Revenue per salesperson
B) Customer satisfaction scores
C) Number of sales calls
D) Expense ratios
ANSWER: A
EXPLANATION: Revenue per salesperson measures individual productivity.
10. The "rule of thumb" for sales compensation budget as percentage of
revenue is typically:
A) 1-3%
B) 5-10%
, C) 15-20%
D) 25-30%
ANSWER: B
EXPLANATION: Sales compensation typically ranges from 5-10% of revenue,
varying by industry.
11. Which commission formula uses different rates for different products?
A) Flat rate commission
B) Tiered commission
C) Differential commission
D) Graduated commission
ANSWER: C
EXPLANATION: Differential commission pays different rates for different
products/categories.
12. A "recoverable draw" differs from a "non-recoverable draw" in that:
A) It must be repaid
B) It's treated as salary
C) It's not taxed
D) It's only for new hires
ANSWER: A
EXPLANATION: Recoverable draws must be repaid from future commissions.
13. Which quota setting method uses historical performance plus growth
factor?
A) Top-down
B) Bottom-up
C) Historical plus
D) Market-based
ANSWER: C
EXPLANATION: Historical plus adds a growth percentage to past performance.
14. The "sales compensation policy document" should include:
A) Payment terms and conditions
B) Quota setting methodology
C) Dispute resolution process
D) All of the above
ANSWER: D
EXPLANATION: All these elements should be documented in the policy.
15. Which measure helps prevent "sandbagging"?
A) Quarterly quotas
B) Monthly quotas
C) Annual quotas with quarterly reviews
D) Rolling quotas
