CPA Business Environment and Concepts (BEC) : Operations Management: Planning Techniques
Study concepts, example questions & explanations for CPA Business Environment and Concepts (BEC)
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Example Questions
Example Question #1 : Balance Scorecard And Benchmarking
The management of a company would do which of the following to compare and contrast its financial information to published information reflecting optimal amounts?
Forecast
Budget
Benchmark
Utilize best practices
Benchmark
Benchmarking is the process of comparing and contrasting financial information.
Example Question #2 : Balance Scorecard And Benchmarking
What is the process by which products and services of a business entity are measured and evaluated relative to the best possible levels of performance?
Standard measurement
Variance management
Measuring the performance gap
Benchmarking
Benchmarking
Measuring and evaluating relative to levels of performance is a prime example for benchmarking.
Example Question #3 : Balance Scorecard And Benchmarking
Which of the following is a financial measure of success in a balanced scorecard?
Staff morale
Market share
Sales growth
Cycle time
Sales growth
The balanced scorecard can be benchmarked for success by a firm's sales growth metric.
Example Question #4 : Balance Scorecard And Benchmarking
Which of the following would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes?
Accounts payable
Bonds payable
Mortgages payable
Common stock
Accounts payable
Of the items listed, A/P would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes.
Example Question #5 : Balance Scorecard And Benchmarking
Which of the following ratios is appropriate for the evaluation of accounts receivable?
Return on assets
Current ratio
Days sales outstanding
Collection to debt ratio
Days sales outstanding
Among the ratios listed, the ratio that is appropriate for the evaluation of accounts receivable is the number of days sales are outstanding.
Example Question #1 : Balance Scorecard And Benchmarking
Of the following success factors in a balanced scorecard, which focuses on the retention of key employees?
Advancement of innovation and human resource development
Financial
Customer satisfaction
Internal business processes
Advancement of innovation and human resource development
Through the advancement of innovation and the learning and growth of employees, a firm can strive toward retaining key employees which is beneficial for future success.
Example Question #1 : Learning Curve
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
2
1
Both 1 and 2
Neither
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 #2 : Learning Curve
In a regression analysis, the coefficient of determination measures:
Independence of variables
Economic plausibility
Independence of residuals
Goodness of fit
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 #3 : Learning Curve
Multiple regression differs from simple regression in that it:
Allows the computation of the coefficient of determination
Provides an estimated constant term
Has more dependent variables
Has more independent variables
Has more independent variables
This analysis is an expansion of simple regression because it allows consideration of more than one independent variable.
Example Question #2 : Learning Curve
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?
Hourly assembly worker's wages
Office manager's salary
Salesperson's commissions
Manufacturing floor manager's salary
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.
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