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 #2 : Globalization
Increased globalization is made possible by each of the listed factors except:
Reduced transportation costs
Deregulation of international financial markets
Regulation of currency values through the International Monetary Fund
Technological advancements including improved communications
Regulation of currency values through the International Monetary Fund
The IMF does not regulate currency values. Its activities are designed to stabilize exchange rates but it is not empowered to regulate currency values.
Example Question #202 : Cpa Business Environment And Concepts (Bec)
All of the following nations are considered emerging nations except:
Brazil
Russia
China
Indonesia
Indonesia
The only other emerging nation not listed here is India.
Example Question #3 : Globalization
The concept of a global economic balance of power anticipates:
Exchange rates are self regulating
The industrialized nations of the G6 will always lead the globe
Trade balances are self regulating
A distribution of power and influence that ensures that no one nation or group of nations will dominate or interfere with the activities of others
A distribution of power and influence that ensures that no one nation or group of nations will dominate or interfere with the activities of others
The concept of balance of power anticipates that no one nation will dominate or interfere with the activities of others.
Example Question #4 : Globalization
Which of the following is not a factor that drives globalization?
Deregulation of international financial markets
Stronger currencies
Technological advancements
Infrastructure and transportation improvements
Stronger currencies
Stronger currencies have no impact on globalization, as currencies fluctuate all the time. These other factors would much more likely to facilitate international trade and global markets.
Example Question #205 : Cpa Business Environment And Concepts (Bec)
Which of the following is not a characteristic of Total Quality Management?
Quality Circles
Customer Focus
Continuous Improvement
Waste Reduction
Waste Reduction
TQM focuses on customer needs, continuous improvements, and quality circles. Waste reduction is a quality of lean manufacturing, not TQM.
Example Question #206 : Cpa Business Environment And Concepts (Bec)
Which of the following management philosophies does not focus on quality?
Total Quality Management
Absolute conformance
Lean
Gap Analysis
Lean
The main objective in lean manufacturing is waste reduction. Although customer requirements and demand pull serve as the basis for the approach, quality is not the most prominent concept.
Example Question #1 : Technology Process Management
Which of the following uses analysis of production processes to ensure that resource uses stay within target costs?
Just-in-time
Activity based costing
Value Chain Analysis
Kaizen
Kaizen
Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs.
Example Question #208 : Cpa Business Environment And Concepts (Bec)
Which of the following is not a requirement of just in time systems?
Employee empowerment
Strong job specialization
Supplies received as needed throughout the day
Reduced setup time
Strong job specialization
Just in time means that employees with multiple skills are used more efficiently and will not specialize in merely one job or task.
Example Question #209 : Cpa Business Environment And Concepts (Bec)
Which of the following is not a typical characteristic of a just in time production environment?
Lot sizes equal to one
Balanced and level workloads
Push through system
Insignificant setup times and costs
Push through system
Just in time has the goal to minimize the level of inventory carried. It has a pull approach rather than a push approach.
Example Question #210 : Cpa Business Environment And Concepts (Bec)
There are 7 factors critical to total quality management. Which is not one of them?
Executive compensation
Objective measures
Customer Focus
Timely recognition
Executive compensation
Total quality management focuses on a customer-focused experience and compensation of the executives has no bearing on a customer.
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