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 #211 : Cpa Business Environment And Concepts (Bec)
A research-based firm in the medical field could use each of the following Internet-based tools for collaboration except:
Videoconferencing
Electronic data interchange
An email application
Groupware systems
Electronic data interchange
EDI is a computer to computer exchange of business transaction documents. It is not used for collaboration between humans.
Example Question #2 : Technology Process Management
Engaging in traditional electronic data interchange (EDI) provides which of the following benefits?
Guaranteed payments from customers
Reduced likelihood of stockout costs
Added flexibility to entice new partners
Enhanced audit trails
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 #3 : Technology Process Management
All of the following statements regarding project risk are correct except:
Risk control includes anticipating everything that could go wrong throughout the project plans
Risk is inherent in every aspect of the project management process
Planning for risk management includes risk assessment
There is always a tradeoff between risk and reward
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 #4 : Technology Process Management
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?
Benchmarking
Statistical process control
Economic value added
Total quality management
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 #211 : Cpa Business Environment And Concepts (Bec)
Which of the following statements is correct regarding IT governance?
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.
IT governance requires that the Control Objectives for Information and related Technology (COBIT) framework be adopted and implemented
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 #2 : It Governance
An IT governance framework should answer all of the following questions except:
How the IT department functions
What key metrics does management need
What does IT return to the business
Will the IT system be asthetically pleasing
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 #217 : Cpa Business Environment And Concepts (Bec)
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 #218 : Cpa Business Environment And Concepts (Bec)
Unlike business process reengineering, business process management:
Increases the financial risk associated with change
Has a longer implementation time
Seeks radical change
Seeks incremental change
Seeks incremental change
Business process management seeks incremental change by tweaking the existing process and design.
Example Question #219 : Cpa Business Environment And Concepts (Bec)
Which of the following is not a disadvantage of outsourcing?
Quality of service
Risk mitigation
Language barriers
Security issues
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 #220 : Cpa Business Environment And Concepts (Bec)
Performance of quality assurance occurs in which of the following processes?
Authorization
Implementation
Planning
Close
Implementation
Quality assurance takes place in the implementation process after the standard of quality has been defined.
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