CPA Business Environment and Concepts (BEC) : CPA Business Environment and Concepts (BEC)
Study concepts, example questions & explanations for CPA Business Environment and Concepts (BEC)
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Example Questions
Example Question #1 : Operations Management: Planning Techniques
The management of a company would do which of the following to compare and contrast its financial information to published information reflecting optimal amounts?
Budget
Benchmark
Forecast
Utilize best practices
Benchmark
Benchmarking is the process of comparing and contrasting financial information.
Example Question #2 : Operations Management: Planning Techniques
What is the process by which products and services of a business entity are measured and evaluated relative to the best possible levels of performance?
Measuring the performance gap
Benchmarking
Variance management
Standard measurement
Benchmarking
Measuring and evaluating relative to levels of performance is a prime example for benchmarking.
Example Question #3 : Operations Management: Planning Techniques
Which of the following is a financial measure of success in a balanced scorecard?
Sales growth
Market share
Cycle time
Staff morale
Sales growth
The balanced scorecard can be benchmarked for success by a firm's sales growth metric.
Example Question #4 : Operations Management: Planning Techniques
Which of the following would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes?
Bonds payable
Common stock
Accounts payable
Mortgages payable
Accounts payable
Of the items listed, A/P would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes.
Example Question #5 : Operations Management: Planning Techniques
Which of the following ratios is appropriate for the evaluation of accounts receivable?
Collection to debt ratio
Current ratio
Return on assets
Days sales outstanding
Days sales outstanding
Among the ratios listed, the ratio that is appropriate for the evaluation of accounts receivable is the number of days sales are outstanding.
Example Question #1 : Balance Scorecard And Benchmarking
Of the following success factors in a balanced scorecard, which focuses on the retention of key employees?
Advancement of innovation and human resource development
Financial
Internal business processes
Customer satisfaction
Advancement of innovation and human resource development
Through the advancement of innovation and the learning and growth of employees, a firm can strive toward retaining key employees which is beneficial for future success.
Example Question #1 : Operations Management: Planning Techniques
Given that demand exceeds capacity, that there is no spoilage or waste, and that there is full utilization of a constant number of assembly hours, the number of components needed for an assembly operation with an 80% learning curve should (1) Increase for successive periods (2) Decrease per unit of output
Both 1 and 2
Neither
2
1
1
The learning curve relates to the efficiency with which productive resources, typically labor, are employed and it suggests that productivity will increase over time.
Example Question #7 : Operations Management: Planning Techniques
In a regression analysis, the coefficient of determination measures:
Economic plausibility
Independence of variables
Goodness of fit
Independence of residuals
Goodness of fit
The coefficient of determination measures the proportion of the total variation in the dependent variable explained by the independent variable.
Example Question #8 : Operations Management: Planning Techniques
Multiple regression differs from simple regression in that it:
Has more independent variables
Provides an estimated constant term
Allows the computation of the coefficient of determination
Has more dependent variables
Has more independent variables
This analysis is an expansion of simple regression because it allows consideration of more than one independent variable.
Example Question #2 : Operations Management: Planning Techniques
Which of the following labor costs for a manufacturing company is deducted from revenues in order to determine gross margin but is not deducted from revenues to determine contribution margin?
Office manager's salary
Salesperson's commissions
Manufacturing floor manager's salary
Hourly assembly worker's wages
Manufacturing floor manager's salary
The manufacturing floor manager's salary is considered fixed factory overhead and is a part of the gross margin calculation but not part of the contribution margin calculation.
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