Process Management
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CPA Auditing and Attestation (AUD) › Process Management
Which of the following methods would be most effective for a company that wants to reduce its rate of defective products?
Variable costing
Six Sigma
Sensitivity analysis
Break-even analysis
Explanation
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.
Unlike business process reengineering, business process management:
Has a longer implementation time
Increases the financial risk associated with change
Seeks incremental change
Seeks radical change
Explanation
Business process management seeks incremental change by tweaking the existing process and design.
Which of the following is not a disadvantage of outsourcing?
Security issues
Risk mitigation
Quality of service
Language barriers
Explanation
Non core functions to one business become critical for companies providing outsourcing services thereby reducing risk exposure in the event an issue arises.
Performance of quality assurance occurs in which of the following processes?
Close
Authorization
Planning
Implementation
Explanation
Quality assurance takes place in the implementation process after the standard of quality has been defined.
Organizations with one-piece flow manufacturing environments that are experiencing bottlenecks in production are most likely to develop strategies associated with:
Theory of constraints
Lean manufacturing
Demand flow manufacturing
Just in time management
Explanation
The theory of constraints says that organizations are impeded from achieving objectives by the existence of one or more constraints.
Of the following, which is not a key component of IT used in modern business?
Decision support systems
Accounting information systems
Management information systems
All of these are key components
Explanation
Among other systems, the following are critical for modern IT infrastructure.