CPHR Financial Analysis and Reporting 5

Question 1

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

Accepted Answer

The organization's overall productivity and workforce efficiency

Answer

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

Question 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?

Accepted Answer

Cash flow statement

Answer

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

Question 3

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

Accepted Answer

To reconcile actual employee counts against budgeted positions by period

Answer

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

Question 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?

Accepted Answer

8%

Answer

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

Question 5

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

Accepted Answer

Time value of money

Answer

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.

(CPHR) Chartered Professional in Human Resources Practice Test

(CPHR) Chartered Professional in Human Resources Practice Test

CPHR Financial Analysis and Reporting 5