CPA Business Environment and Concepts (BEC) : Process Management
Study concepts, example questions & explanations for CPA Business Environment and Concepts (BEC)
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Example Questions
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.
Example Question #5 : Process Management
Organizations with one-piece flow manufacturing environments that are experiencing bottlenecks in production are most likely to develop strategies associated with:
Theory of constraints
Demand flow manufacturing
Lean manufacturing
Just in time management
Theory of constraints
The theory of constraints says that organizations are impeded from achieving objectives by the existence of one or more constraints.
Example Question #3 : Process Management
Of the following, which is not a key component of IT used in modern business?
Accounting information systems
Management information systems
All of these are key components
Decision support systems
All of these are key components
Among other systems, the following are critical for modern IT infrastructure.
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