### All CPA Business Environment and Concepts (BEC) Resources

## Example Questions

### Example Question #151 : Cpa Business Environment And Concepts (Bec)

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

**Possible Answers:**

Both 1 and 2

1

2

Neither

**Correct answer:**

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 #6 : Operations Management: Planning Techniques

In a regression analysis, the coefficient of determination measures:

**Possible Answers:**

Goodness of fit

Economic plausibility

Independence of residuals

Independence of variables

**Correct answer:**

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 #7 : Operations Management: Planning Techniques

Multiple regression differs from simple regression in that it:

**Possible Answers:**

Has more independent variables

Allows the computation of the coefficient of determination

Provides an estimated constant term

Has more dependent variables

**Correct answer:**

Has more independent variables

This analysis is an expansion of simple regression because it allows consideration of more than one independent variable.

### Example Question #152 : Cpa Business Environment And Concepts (Bec)

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?

**Possible Answers:**

Salesperson's commissions

Hourly assembly worker's wages

Manufacturing floor manager's salary

Office manager's salary

**Correct answer:**

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.

### Example Question #1 : Learning Curve

What is a company's margin of safety if it has sales of $200,000, a contribution margin of $120,000, fixed costs of $90,000, and income taxes of $12,000?

**Possible Answers:**

$182,000

$50,000

$168,000

$150,000

**Correct answer:**

$50,000

$90,000/($120,000/$200,000) = $150,000. $200,000 - $150,000 = $50,000.

### Example Question #161 : Cpa Business Environment And Concepts (Bec)

Sales forecasts are formed considering all of the following factors except:

**Possible Answers:**

Sunk costs

Competitor plans

Past historical sales data

Estimates of future sales

**Correct answer:**

Sunk costs

Sunk costs should not be considered as there is no recuperating them and they do not play a role in forecasts at all.