Practice Test Geeks(CPHR) Chartered Professional in Human Resources Practice Test
← All CPHR Flashcard Decks

Financial Analysis and Reporting Flashcards

7 cards from real CPHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Analysis and Reporting flashcards as text

  1. What does 'revenue per employee' measure in workforce analytics?

    Answer: The organization's overall productivity and workforce efficiency

    Revenue per employee (total revenue ÷ headcount) is a key productivity metric showing how much economic value each employee generates.

  2. Which financial statement would an HR leader review to understand whether the organization can fund a planned hiring surge over the next 12 months?

    Answer: Cash flow statement

    The cash flow statement shows available and projected cash, indicating whether sufficient liquidity exists to fund increased payroll and hiring costs.

  3. In HR budgeting, what is the purpose of a 'headcount reconciliation'?

    Answer: To reconcile actual employee counts against budgeted positions by period

    Headcount reconciliation compares actual filled positions to budgeted headcount, highlighting over/understaffing and budget variances.

  4. A company's HR cost center shows total labor costs of $2.4M and total revenue of $30M. What is the HR cost as a percentage of revenue?

    Answer: 8%

    $2.4M ÷ $30M = 0.08, or 8% of revenue—a common HR benchmarking metric.

  5. Which concept explains why $100,000 received today is more valuable than $100,000 received three years from now?

    Answer: Time value of money

    The time value of money holds that a dollar available today can be invested to earn returns, making present dollars worth more than future dollars.

  6. When HR reports 'human capital ROI' (HCROI), what is the formula?

    Answer: (Revenue − Operating Expense) ÷ Total Compensation & Benefits

    HCROI = (Revenue − Operating Expenses excluding labor) ÷ Total Compensation & Benefits, showing value generated per dollar of human capital investment.

  7. An HR department is asked to conduct a 'sensitivity analysis' on its benefit cost projections. What does this involve?

    Answer: Testing how changes in key assumptions (e.g., medical inflation rate) affect projected costs

    Sensitivity analysis tests how the output (projected costs) changes when key input assumptions are varied, revealing financial risk exposure.