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:
Deregulation of international financial markets
Reduced transportation costs
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:
China
Indonesia
Russia
Brazil
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:
The industrialized nations of the G6 will always lead the globe
Exchange rates 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
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
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
Infrastructure and transportation improvements
Stronger currencies
Technological advancements
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 #1 : Technology Process Management
Which of the following is not a characteristic of Total Quality Management?
Continuous Improvement
Customer Focus
Quality Circles
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 #2 : Technology Process Management
Which of the following management philosophies does not focus on quality?
Lean
Gap Analysis
Total Quality Management
Absolute conformance
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 #3 : Technology Process Management
Which of the following uses analysis of production processes to ensure that resource uses stay within target costs?
Activity based costing
Kaizen
Value Chain Analysis
Just-in-time
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 #4 : Technology Process Management
Which of the following is not a requirement of just in time systems?
Employee empowerment
Reduced setup time
Strong job specialization
Supplies received as needed throughout the day
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 #5 : Technology Process Management
Which of the following is not a typical characteristic of a just in time production environment?
Insignificant setup times and costs
Lot sizes equal to one
Balanced and level workloads
Push through system
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 #6 : Technology Process Management
There are 7 factors critical to total quality management. Which is not one of them?
Customer Focus
Executive compensation
Timely recognition
Objective measures
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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