All CPA Business Environment and Concepts (BEC) Resources
Example Questions
Example Question #1 : Total Quality Management
Which of the following is not a characteristic of Total Quality Management?
Continuous Improvement
Customer Focus
Quality Circles
Waste Reduction
Waste Reduction
TQM focuses on customer needs, continuous improvements, and quality circles. Waste reduction is a quality of lean manufacturing, not TQM.
Example Question #2 : Total Quality Management
Which of the following management philosophies does not focus on quality?
Gap Analysis
Absolute conformance
Lean
Total Quality Management
Lean
The main objective in lean manufacturing is waste reduction. Although customer requirements and demand pull serve as the basis for the approach, quality is not the most prominent concept.
Example Question #3 : Total Quality Management
Which of the following uses analysis of production processes to ensure that resource uses stay within target costs?
Value Chain Analysis
Activity based costing
Just-in-time
Kaizen
Kaizen
Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs.
Example Question #4 : Total Quality Management
Which of the following is not a requirement of just in time systems?
Employee empowerment
Strong job specialization
Reduced setup time
Supplies received as needed throughout the day
Strong job specialization
Just in time means that employees with multiple skills are used more efficiently and will not specialize in merely one job or task.
Example Question #5 : Total Quality Management
Which of the following is not a typical characteristic of a just in time production environment?
Push through system
Insignificant setup times and costs
Balanced and level workloads
Lot sizes equal to one
Push through system
Just in time has the goal to minimize the level of inventory carried. It has a pull approach rather than a push approach.
Example Question #6 : Total Quality Management
There are 7 factors critical to total quality management. Which is not one of them?
Executive compensation
Timely recognition
Customer Focus
Objective measures
Executive compensation
Total quality management focuses on a customer-focused experience and compensation of the executives has no bearing on a customer.
All CPA Business Environment and Concepts (BEC) Resources
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