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MULTIPLE CHOICE (15 items) Which of the following is the best explanation of Business Process

Reengineering (BPR)? A. Redesigning the organizational structure of a business B. Redesigning workflow


C. Redesigning products D. Transformation of business processes for more effective achievement of
business goals Which of the following set out to demonstrate to customers that a business is committed
to quality and able to supply its customers’ quality needs? A. Cost of quality B. Quality assurance
systems C. Quality auditing D. Total quality management Outsourcing computer operations is normally
termed as: A. Contracting Out B. Core Activities C. Facilities management D. Outsourcing STATEMENT 1:
Delayering usually has a dramatic impact on lowering staffing costs. STATEMENT 2: Greater
empowerment inherited by the level of management or staff beneath the level which has been removed
should not lead to greater job satisfaction and to greater work motivation. STATEMENT 3: Many
businesses have little idea how many levels of management and staff they have. However, it is easy for
them to determine how many levels of management and staff the organization should have. A. True,
True, True B. False, True, True C. True, False, False D. True, True, False The driving objectives of Just-In-
Time are to eliminate wasteful or non-value-added activities, and by doing so achieve these following
improvements, EXCEPT: A. Improved productivity B. Increased quality C. Reduced cost D. Improved work
in-progress stock levels The __________ seeks to establish and maintain high standards of TQM and/or
quality systems. A. Quality assurance systems B. Cost of quality C. Quality audit D. Total quality
management This refers to an increase in the cost of the service outsourced once the contract is
established. A. Cost Escalation B. Cost–Benefit Issues C. Contracting Out D. Marginal Cost Which of the
following statements is incorrect regarding the implications of Just-In-Time for internal auditors? A.
Auditors must have a suitable understanding of the associated techniques in order that their reviews are
both effective and credible. B. The inclusion of internal auditors in the development of manufacturing
systems will go towards helping address this potential shortcoming, but only if the organization is at the
stage of introducing new or revised methods, thus offering the audit function the opportunity of early
involvement. C. Auditors should be aware of the cultural implications for the organization of introducing
and using production management methods such as JIT. D. The use of JIT manufacturing systems leads
to a reduction in paperwork and this can reduce problems for auditors when tracking processes

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