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 #6 : Technology Process Management
A research-based firm in the medical field could use each of the following Internet-based tools for collaboration except:
Electronic data interchange
Videoconferencing
Groupware systems
An email application
Electronic data interchange
EDI is a computer to computer exchange of business transaction documents. It is not used for collaboration between humans.
Example Question #1 : It Governance
Engaging in traditional electronic data interchange (EDI) provides which of the following benefits?
Added flexibility to entice new partners
Guaranteed payments from customers
Enhanced audit trails
Reduced likelihood of stockout costs
Reduced likelihood of stockout costs
EDI is the exchange of business transaction documents from one computer to another. This is much more efficient than paper exchanges and reduces the likelihood of stockout costs.
Example Question #2 : It Governance
All of the following statements regarding project risk are correct except:
There is always a tradeoff between risk and reward
Risk is inherent in every aspect of the project management process
Planning for risk management includes risk assessment
Risk control includes anticipating everything that could go wrong throughout the project plans
Risk control includes anticipating everything that could go wrong throughout the project plans
Anticipating everything that could go wrong throughout the project plans is a part of risk assessment, not risk control.
Example Question #3 : It Governance
A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the following tools is the manufacturer using?
Economic value added
Benchmarking
Total quality management
Statistical process control
Benchmarking
Benchmarking is a process where a company compares itself to peers to measure performance and to understand where improvements can be made in its processes.
Example Question #4 : It Governance
Which of the following statements is correct regarding IT governance?
IT governance requires that the Control Objectives for Information and related Technology (COBIT) framework be adopted and implemented
IT governance is an appropriate issues for organizations at the level of the board of directors only.
IT goals should be independent of strategic goals
A primary goal of IT governance is to balance risk versus return over IT and its processes.
A primary goal of IT governance is to balance risk versus return over IT and its processes.
Risk management is one of the primary goals of IT governance, as the inevitable risks inherent in IT must always be balanced against the potential returns associated with an IT infrastructure.
Example Question #5 : It Governance
An IT governance framework should answer all of the following questions except:
What does IT return to the business
Will the IT system be asthetically pleasing
How the IT department functions
What key metrics does management need
Will the IT system be asthetically pleasing
IT governance is more focused on the operations and implementation of IT, rather than cosmetic approaches to systems.
Example Question #1 : Process Management
Which of the following methods would be most effective for a company that wants to reduce its rate of defective products?
Sensitivity analysis
Break-even analysis
Variable costing
Six Sigma
Six Sigma
Six Sigma is a quality improvement program that uses metrics to evaluate the achievement of goals. Improving current processes for reducing defective products is a big component.
Example Question #2 : Process Management
Unlike business process reengineering, business process management:
Seeks radical change
Seeks incremental change
Increases the financial risk associated with change
Has a longer implementation time
Seeks incremental change
Business process management seeks incremental change by tweaking the existing process and design.
Example Question #3 : Process Management
Which of the following is not a disadvantage of outsourcing?
Quality of service
Risk mitigation
Security issues
Language barriers
Risk mitigation
Non core functions to one business become critical for companies providing outsourcing services thereby reducing risk exposure in the event an issue arises.
Example Question #4 : Process Management
Performance of quality assurance occurs in which of the following processes?
Implementation
Close
Authorization
Planning
Implementation
Quality assurance takes place in the implementation process after the standard of quality has been defined.
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