COMPENSATION AND BENEFITS EXAMINATION
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIREE UNIVERSITY
1. Compensation refers to:
A. Job termination
B. Total rewards given to employees for work done
C. Training only
D. Recruitment process
Answer: B
Compensation includes all financial and non-financial rewards employees receive.
2. Benefits are:
A. Punishments
B. Non-wage rewards like insurance and leave
C. Job losses
D. Salary deductions
Answer: B
Benefits are indirect employee rewards.
3. Direct compensation includes:
A. Insurance
B. Salary and wages
C. Transport allowance only
D. Leave
Answer: B
Direct compensation is monetary pay.
4. Indirect compensation refers to:
,A. Salary
B. Benefits and perks
C. Bonuses only
D. Overtime pay only
Answer: B
It includes non-cash rewards.
5. Base pay is:
A. Bonus payment
B. Fixed salary before allowances
C. Commission
D. Overtime
Answer: B
It is the basic salary amount.
6. Gross pay means:
A. Salary after deductions
B. Total earnings before deductions
C. Net salary only
D. Allowances only
Answer: B
Gross pay includes all earnings before deductions.
7. Net pay is:
A. Total salary before deductions
B. Salary after deductions
C. Bonus only
D. Allowances only
Answer: B
Net pay is take-home salary.
8. Payroll refers to:
, A. Hiring process
B. Payment of employee wages
C. Training system
D. Job design
Answer: B
Payroll manages employee payments.
9. A salary structure is:
A. Random pay
B. Organized pay scale system
C. Job description
D. Hiring method
Answer: B
It organizes pay levels.
10. Wage refers to:
A. Monthly fixed pay
B. Hourly or daily payment
C. Bonus only
D. Benefits only
Answer: B
Wages are time-based payments.
11. Compensation strategy aims to:
A. Reduce employees
B. Attract and retain talent
C. Increase conflict
D. Avoid HR
Answer: B
It helps attract employees.
12. Bonus is:
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIREE UNIVERSITY
1. Compensation refers to:
A. Job termination
B. Total rewards given to employees for work done
C. Training only
D. Recruitment process
Answer: B
Compensation includes all financial and non-financial rewards employees receive.
2. Benefits are:
A. Punishments
B. Non-wage rewards like insurance and leave
C. Job losses
D. Salary deductions
Answer: B
Benefits are indirect employee rewards.
3. Direct compensation includes:
A. Insurance
B. Salary and wages
C. Transport allowance only
D. Leave
Answer: B
Direct compensation is monetary pay.
4. Indirect compensation refers to:
,A. Salary
B. Benefits and perks
C. Bonuses only
D. Overtime pay only
Answer: B
It includes non-cash rewards.
5. Base pay is:
A. Bonus payment
B. Fixed salary before allowances
C. Commission
D. Overtime
Answer: B
It is the basic salary amount.
6. Gross pay means:
A. Salary after deductions
B. Total earnings before deductions
C. Net salary only
D. Allowances only
Answer: B
Gross pay includes all earnings before deductions.
7. Net pay is:
A. Total salary before deductions
B. Salary after deductions
C. Bonus only
D. Allowances only
Answer: B
Net pay is take-home salary.
8. Payroll refers to:
, A. Hiring process
B. Payment of employee wages
C. Training system
D. Job design
Answer: B
Payroll manages employee payments.
9. A salary structure is:
A. Random pay
B. Organized pay scale system
C. Job description
D. Hiring method
Answer: B
It organizes pay levels.
10. Wage refers to:
A. Monthly fixed pay
B. Hourly or daily payment
C. Bonus only
D. Benefits only
Answer: B
Wages are time-based payments.
11. Compensation strategy aims to:
A. Reduce employees
B. Attract and retain talent
C. Increase conflict
D. Avoid HR
Answer: B
It helps attract employees.
12. Bonus is:
