BEC Practice Exam Questions &
Answers 2024/2025
The opportunity cost of making a component part where there is no alternative use for the factory is? -
ANSWERSZero. If there is excess capacity, then it is not possible to have an opportunity cost because
nothing is being foregone.
In the long run, a firm may experience increasing returns due to? - ANSWERSEconomies of Scale.
In the long run, a firm may experience increasing returns due to economies of scale which come into full
play only if a large enough number of units is being produced to make it worth while to set up a fairly
elaborate organization.
Globalization is often measured using the following statistic.. - ANSWERSWorld trade growth as a
percentage of GDP.
Globalization represents the increased dispersion and integration of the world's economies.
How does inflation distort reported income? - ANSWERSDepreciation is not reflective of current fixed-
asset replacement costs.
ROI = - ANSWERSIncome / Investment
OR
(Revenue - COGS - General&Admin Expenses) / Investment
Expressed in a %.
RI = - ANSWERSIncome - (Investment * Hurdle Rate)
, Expressed in a $ amount.
The Sarbanes Oxley Act of 2002 seeks to improve investor confidence by providing greater transparency
for all of the following issues, except: - ANSWERSMeans and methods for balancing risk and growth.
Gross domestic product includes which of the following measures? - ANSWERSThe total monetary value
of all final goods and services produced within a nation in one year.
Price elasticity of demand = - ANSWERS% change in quantity demanded / % change in price
% change in quantity demanded = (new units - old units) / old units
Which one of the following financial instruments generally provides the largest source of short-term
credit for small firms? - ANSWERSTrade Credit.
In a quality control program, which of the following is (are) categorized as internal failure costs? -
ANSWERSRe-work.
Other examples: scrap, re-inspection, re-testing.
The Sarbanes Oxley Act of 2002 requires that management report on internal control include all of the
following, EXCEPT: - ANSWERSA statement that there is no disagreement between management and the
auditor as to the effectiveness of internal controls.
Financial statement disclosures include management's assumption of responsibility for IC, managements
assessment of IC effectiveness and a statement that the auditor has reported on managements
evaluation.
A market with many independent firms, low barriers to entry, and product differentiation is best
classified as: - ANSWERSMonopolistic Competition
Answers 2024/2025
The opportunity cost of making a component part where there is no alternative use for the factory is? -
ANSWERSZero. If there is excess capacity, then it is not possible to have an opportunity cost because
nothing is being foregone.
In the long run, a firm may experience increasing returns due to? - ANSWERSEconomies of Scale.
In the long run, a firm may experience increasing returns due to economies of scale which come into full
play only if a large enough number of units is being produced to make it worth while to set up a fairly
elaborate organization.
Globalization is often measured using the following statistic.. - ANSWERSWorld trade growth as a
percentage of GDP.
Globalization represents the increased dispersion and integration of the world's economies.
How does inflation distort reported income? - ANSWERSDepreciation is not reflective of current fixed-
asset replacement costs.
ROI = - ANSWERSIncome / Investment
OR
(Revenue - COGS - General&Admin Expenses) / Investment
Expressed in a %.
RI = - ANSWERSIncome - (Investment * Hurdle Rate)
, Expressed in a $ amount.
The Sarbanes Oxley Act of 2002 seeks to improve investor confidence by providing greater transparency
for all of the following issues, except: - ANSWERSMeans and methods for balancing risk and growth.
Gross domestic product includes which of the following measures? - ANSWERSThe total monetary value
of all final goods and services produced within a nation in one year.
Price elasticity of demand = - ANSWERS% change in quantity demanded / % change in price
% change in quantity demanded = (new units - old units) / old units
Which one of the following financial instruments generally provides the largest source of short-term
credit for small firms? - ANSWERSTrade Credit.
In a quality control program, which of the following is (are) categorized as internal failure costs? -
ANSWERSRe-work.
Other examples: scrap, re-inspection, re-testing.
The Sarbanes Oxley Act of 2002 requires that management report on internal control include all of the
following, EXCEPT: - ANSWERSA statement that there is no disagreement between management and the
auditor as to the effectiveness of internal controls.
Financial statement disclosures include management's assumption of responsibility for IC, managements
assessment of IC effectiveness and a statement that the auditor has reported on managements
evaluation.
A market with many independent firms, low barriers to entry, and product differentiation is best
classified as: - ANSWERSMonopolistic Competition
