Midterm Exam Answers: 2016

Saturday, 28 May 2016

ACCT 346 Midterm Exam Solution 100% Correct Answers

ACCT 346 Midterm Exam Solution 100% Correct Answers

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(TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for

(TCO 1) Which of the following costs does not change when the level of business activity changes?

(TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?

(TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is the budgeted fixed cost per unit?

(TCO 1) Which of the following costs is not part of manufacturing overhead?

(TCO 1) Product costs

(A) are also called manufacturing costs
(B) are considered an asset until the finished goods are sold.
(c) become an expense when the goods are sold.
(d) All of the above answers are correct.

(TCO 1) Red Runner’s Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000 and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured?

(TCO 2) BCS Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing

(TCO 2) During 2011, Madison Company applied overhead using a job-order costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $1,800,000. Actual direct labor hours for 2011 were 140,000 and actual overhead was $1,670,000.
What is the amount of under or over applied overhead for the year?

(TCO 3) Which of the following describes the differences between job-order and process costing?

(TCO 3) The Blending Department began the period with 45,000 units. During the period the department received another 30,000 units from the prior department and completed 60,000 units during the period. The remaining units were 75% complete. How much are equivalent units in The Blending Department’s work in process inventory at the end of the period?

TCO 3) Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with respect to material and 50% complete with respect to conversion costs. Other information is as follows:

Work in process, May 1:
Direct material	$36,000
Conversion costs	$45,000
Costs incurred during May:
Direct material	$186,000
Conversion costs	$255,000

How much is the cost per equivalent unit for direct materials?

(TCO 4) Total costs were $75,800 when 30,000 units were produced and $95,800 when 40,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units

ACCT 550 Midterm Exam 100% Correct Answers

ACCT 550 Midterm Exam 100% Correct Answer

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(TCO A) The quality of information that gives assurance that is reasonably free of error and bias and is complete is

TCO A) Issuance of common stock for cash affects which basic element of financial statements?

(TCO B) Retained earnings at 1/1/1X was $150,000 and at 12/31/1X it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $30,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

(TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except

(TCO A) The cash method of accounting

(TCO A) Which of the following is an ingredient of relevance?

TCO A) Information is neutral if it

(TCO A) Which of the following is not a basic element of financial statements?

(TCO A) Issuance of common stock for cash affects which basic element of financial statements?

(TCO A) What is the quality of information that enables users to better forecast future operations?

(TCO D) Balance sheet information is useful for all of the following except to

(TCO A) The Financial Accounting Standards Board employs a “due process” system, which

(TCO A) The quality of information that gives assurance that is reasonably free of error and bias and is complete is

(TCO D) The net assets of a business are equal to

(TCO A) Why are some of the major differences between iGAAP and U.S. GAAP? Explain in detail.

(TCO C) (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts.

Accounting and legal fees	$150,000
Advertising	$125,000
Freight-out	$65,000
Interest	$80,000
Loss on sale of long-term investments	$35,000
Officers’ salaries	$200,000
Rent for office space	$160,000
Sales salaries and commissions	$110,000

One half of the rented premises are occupied by the sales department.
How much of the expenses listed above should be included in Perry’s general and administrative expenses for 201X?

(TCO C) An income statement shows “income before income taxes and extraordinary items” in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the “income before extraordinary items”?

(TCO C) Ivy Co. had the following account balances.

Sales	$ 120,000
Cost of goods sold	70,000
Salary expense	15,000
Depreciation expense	20,000
Dividend revenue	5,000
Utilities expense	6,000
Rental revenue	30,000
Interest expense	10,000
Advertising expense	15,000

What would Ivy report as total expenses in a single-step income statement?

(TCO B) Prepaid rent at 1/1/1X was $25,000. During 201X, rent payments of $123,000 were made and charged to “rent expense.” The 201X income statement shows as a general expense the item “rent expense” in the amount of $122,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

(TCO B) Retained earnings at 1/1/1X was $150,000 and at 12/31/1X it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $30,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

(TCO B) Retained earnings at 1/1/1X was $90,000 and at 12/31/1X it was $210,000. During 201X, cash dividends of $50,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

(TCO B) Unearned rent at 1/1/1X was $6,000 and at 12/31/1X was $15,000. The records indicate cash receipts from rental sources during 201X amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

(TCO D) Which of the following is not an acceptable major asset classification?

(TCO D) An example of an item that is not an element of working capital is

(TCO A) Which of the following is true with regard to the element “comprehensive income”?

(TCO D) The current assets section of the balance sheet should include

(TCO D) Hall Corp.’s trial balance reflected the following account balances at December 31, 201X.
Accounts receivable (net)

Accounts receivable (net)	$24,000
Trading securities	6,000
Accumulated depreciation on equipment and furniture	15,000
Cash	11,000
Inventory	30,000
Equipment	25,000
Patent	4,000
Prepaid expenses	2,000
Land held for future business site	18,000

In Hall’s December 31, 201x balance sheet, what is the current assets total?

ACCT 212 Midterm Exam Solution 100% Correct Answers

ACCT 212 Midterm Exam Solution 100% Correct Answers

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(TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what liabilities are (10 points) and (2) provide an example of a liability account. (10 points)

(TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies how well the company performed during the year (10 points) and (2) explain what information this financial statement provides. (10 points)

(TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Entity Assumption is (10 points) and (2) provide an example of its application. (10 points)

(TCO 2) Transaction analysis results in the development of a journal entry. A building is purchased for $35,000. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points)

(TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month $100 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points)

(TCO 5) Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the five components of internal control (10 points) and (2) provide examples of how your two selected components of internal control will meet the goal of safeguarding assets and promoting ethical business practices. (15 points)

(TCO 5) The bank account as a control device that helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for Acorn Plumbing, Inc. (Use the format shown on page 255 of your textbook) (25 points)

HRM 593 Employment Law Midterm Exam Answers

HRM 593 Employment Law Midterm Exam Answers

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(TCO B) Porter, Co. has recently instituted a policy of promoting only from within its employee pool. For years, the company hired for advanced positions internally and externally. At the time when Porter, Co. instituted this new policy of promoting exclusively internally, its workforce of 200 individuals was 80% male and 20% female. The available labor pool of 3,000 qualified individuals from which Porter, Co. might recruit for advanced positions, were it looking outside as well as within, was 50% male and 50% female. Should Porter, Co. have any cause for concern over the legality of the new promotions policy? Explain in detail and support your conclusion with analysis of potential legal liability, suggested revisions, and explanation of possible consequences.

(TCO H) Kramer, a African-American male, enters into an employment contract with Bonzai Consulting for a three-year term. Shortly after the commencement of the term, it was made clear to Kramer by some of his Caucasian colleagues that he was not welcome. Kramer was frequently locked out of his office, his work was sabotaged, and his mail was intercepted and destroyed. All of these actions rendered him ineffective and led to his eventual dismissal. Kramer sues. Analyze the cause of action, legal basis for his claim, the viability of his claim, measures that should have been taken by the company to minimize or avoid liability, and use applicable law to support your response and conclusion.

(TCO A) Emmanuel & Peterson is an extremely busy law firm specializing in litigation. In order to keep up with the workload, the firm refuses to hire anyone as a secretary who is unable to type at least 65 words per minute. As a result, there are no male secretaries working for the firm. A group of male applicants files litigation that challenges this policy. Explain the legal basis for the suit, the likelihood of prevailing in the cause of action, and the defenses available to the firm.

PA 571 (Nonprofit Org Management) Midterm Exam Answers

PA 571 (Nonprofit Org Management) Midterm Exam Answers

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Question :
(TCO A) Which answer includes the three major categories of nonprofit organizations?
Points Received:
5 of 5
2.
Question :
(TCO A) Which statement is true?
Points Received:
5 of 5
3.
Question :
(TCO E) Generally, a nonprofit organization is not able to offer a salary comparable to what would be offered by a for-profit business for a similar position. What is a reason for this discrepancy?
Points Received:
5 of 5
4.
Question :
(TCO F) You have just been promoted to Volunteer Coordinator at your organization. This is a newly created position so you are responsible for developing all aspects related to volunteer management. What should you include in the New Volunteer Welcome Packet?
Points Received:
5 of 5
5.
Question :
(TCO F) A nonprofit organization may decide to develop and use a volunteer job description for each position to be filled by a volunteer. Which of the following is a reason that a nonprofit may decide to do so?
Points Received:
5 of 5
6.
Question :
(TCO B) You are on the Board Development Committee of a local nonprofit community center. There are two openings on the Board of Directors, and your committee is in charge of filling those slots. What characteristic in the prospective board member would you most like to see from among the choices below?
Points Received:
5 of 5
7.
Question :
(TCO B) Turnover on the board of directors of a nonprofit organization is in many cases normal and may in ways even be desirable. But to help ensure some stability in the relationship between the board and the executive director, which one of the following tools might be of some help?
Points Received:
5 of 5
8.
Question :
(TCO E) Per the Week 2 lecture, a starting place for a nonprofit organization to look for potential candidates for employment is
Points Received:
5 of 5
1.
Question :
(TCO E) Imagine that you are the Executive Director of a nonprofit organization whose mission is to save the rain forests in Brazil. You plan to raise money for your mission by selling memberships in your organization. You have decided that in order to reach your goals, you need to hire a marketing manager. You have interviewed several qualified people, all of whom are currently marketing memberships in for-profit organizations and making about the same income that your position will pay. Assuming you could not offer more money, what would you say or do that could make a top candidate accept your offer?
Points Received:
5 of 5
2.
Question :
(TCO A) Nonprofit organizations are keenly interested in the results of political processes. What restrictions, if any, are placed upon charities when entering the political arena?
Points Received:
5 of 5
3.
Question :
(TCO F) What item might be most likely to be included in a volunteer job description?
Points Received:
5 of 5
4.
Question :
(TCO A) Charitable organizations include
Points Received:
5 of 5
5.
Question :
(TCO F) Volunteers are often an integral part of a nonprofit organization. Which one is not a common reason why nonprofits use volunteers?
Points Received:
5 of 5
6.
Question :
(TCO B) When it comes to recruiting new board members, where is a good starting place?
Points Received:
5 of 5
7.
Question :
(TCO A) Which one of the following statements is true?
Points Received:
5 of 5
8.
Question :
(TCO F) As a paid employee to a local nonprofit organization, you have just been promoted to Volunteer Coordinator. You know that the organization has had a difficult time keeping its volunteers. Which one is the best recommendation you might make to help retain more volunteers?
Points Received:
5 of 5
1.
Question :
(TCO A) The three main legal forms that a nonprofit organization may take are as (1) a corporation, (2) a trust, or (3) an unincorporated association. For purposes of this question, please focus only on a corporation. Please describe briefly the steps that would be needed for an organization to form a new corporation in which to conduct its operations.
Points Received:
10 of 20
Page 9 of the text.
2.
Question :
(TCO B) The Duty of Obedience is one of the three duties imposed on board member of a nonprofit organization under contemporary general standards. Please define this duty and discuss three examples of actions that a board member should do to help meet this duty.
Points Received:
20 of 20
3.
Question :
(TCO G) In Week 2, you should have retrieved and analyzed the mission statements of two nonprofit organizations. Based on your analysis, discuss how a nonprofit’s mission statement may help the board and the executive director of the organization lead the volunteers and employees.
Points Received:
20 of 20

MIS 535 Midterm Exam Solution-All Possible Questions

MIS 535 Midterm Exam Solution-All Possible Questions

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(TCO A) Domino’s upgraded Pulse Evolution system incorporated a Pizza Tracker functionality that shows the progression of individual pizza orders. This is an example of using information systems to achieve which business objective? (Points :10)
Customer and supplier intimacy
Survival
Improved decision making
Operational excellence
(TCO A) Cloud computing (Points :10)
Is the same as e-commerce
Reduces the size of IT organizations
Increases special software, other than a browser, to be installed on each computer

(TCO A) Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization’s (Points : 10)
Data management environment
Networked environment
IT infrastructure
Information system

(TCO A) The hardware and software used to transfer data in an organization is called (Points : 10)
data management technology
networking and data management technology
data and telecommunications technology
networking and telecommunications technology

(TCO B) Internet technology (Points :10)

(TCO B) The value chain model (Points :10)

(TCO B) For which of the following industries has the Internet as a whole been a disruptive technology? (Points :10)

(TCO C) The difference between competitors because of the wide availability of information.(Points :10)

(TCO C) Which common database challenge is illustrated by the text’s discussion of receiving multiple pieces of the same direct mail advertising with an identical address? (Points :10)

(TCO D) Which of the following is not an example of the emerging mobile computing platforms? (Points : 10)

(TCO A) Define operational excellence. How can information systems help achieve it? (Points : 25)

TCO A) What is the difference between information technology and information systems? Describe some of the functions of information systems.

(TCO A) List and describe the four information systems serving each of the major functional areas of a business (Points : 20)

(TCO B) List three organizational factors that can prevent a firm from fully realizing the benefits of a new information system, and provide examples of each. (Points : 20)

(TCO B) How have mobile devices and social media changed the work environment? (Points : 25)

(TCO C) The small publishing company you work for wants to create a new database for storing information about all of its author contracts. What factors will influence how you design the database? (Points : 25)

(TCO C) What types of relationships are possible in a relational database? Describe and give an example of each (Points : 25)

(TCO D) What is Web 3.0, and how do you think Web 3.0 developments could impact businesses?

(TCO D) Describe and explain the idea of network neutrality. Are you in favor of network neutrality? Why or why not? (Points : 25)

(TCO D)Describe the effect of cloud computing on traditional IT infrastructure.

MGMT 303 Midterm Exam Solution – All Possible Questions

MGMT 303 Midterm Exam Solution – All Possible Questions

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(TCO 1) The _____ approach of going green is a good example of the firm’s social responsibility in addition to demonstrating the highest degree of environmental sensitivity. (Points : 5)

2. (TCO 2) The Ford Motor Company sold an auto parts company because profitability was low. The main environmental dimension considered was (Points : 5)

3. (TCO 3) The_____ approach of going green is a good example of the firm’s social responsibility in addition to demonstrating the highest degree of environmental sensitivity. (Points : 5)

. 4. (TCO 4) Which of the following is usually the first type of international business in which a company gets involved? (Points : 5)

5. (TCO 5) If Delta Airlines decides to buy a regional carrier, this would be an example of a(n) _____ plan. (Points : 5)

6. (TCO 6) Identify the statement that is TRUE when comparing large and small businesses. (Points : 5)

(TCO 1) Identify four skills that a manager needs in order to perform the job efficiently and effectively. Provide brief comments on each. (Points : 10)

(TCO 2) Explain the differences among mergers, acquisitions, and alliances. (Points : 10)

(TCO 3) Briefly explain the four different approaches to social responsibility that an organization can adopt. (Points: 10)

. (TCO 4) What are the connections between GATT and the WTO? Explain the role of the WTO.

(TCO 7) Briefly explain the situational influences on organizational design. (Points : 10)

(TCO 4) Describe three environmental challenges of international management. (Points : 15)

(TCO 5) Identify a company and write a brief SWOT analysis for that company. (Points : 15)

(TCO 6) Briefly describe industries in which small businesses seem to be most effective and why this seems to be the case. In what area are small businesses least successful in comparison to large businesses? (Points: 15)

. (TCO 7) In what ways are virtual and learning organizations different from the typical organization? (Points : 15)

(TCO 1) One example of a firm studying it’s _____ is an annual assessment of its labor supply.

(TCO 3) Which of the following is the MOST common approach to the management of ethics?

(TCO 6) Identify the statement that is TRUE when comparing large and small businesses

BUSN 319 Week 4 Midterm Exam Solution

BUSN 319 Week 4 Midterm Exam Solution

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(TCO 1) The Accounting Equation is used to develop the organization’s financial reports. (1) Describe what assets are and (2) provide an example of an asset account

(TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies how well the company performed during the year and (2) explain what information this financial statement provides.

(TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Cost Principle is and (2) provide an example of its application.

(TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $2,500 within 30 days. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount , and (2) explain how the Accounting Equation is impacted.

(TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month, $350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month, $100 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and explain how to use the format account name/debit or credit/dollar amount , and (2) explain how the Accounting Equation is impacted.

(TCO 5) Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the seven internal control procedures and (2) provide examples of how your two selected internal control procedures will meet the goal of safeguarding assets and promoting ethical business practices.

(TCO 5) The bank account as a control device that helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for Acorn Plumbing, Inc. (Use the format shown on page 251 of your textbook.) (25 points)

BMDS 3371 Week 5 Midterm Exam 100% Correct Answers

BMDS 3371 Week 5 Midterm Exam 100% Correct Answers

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Each question is worth 2.5 points. The midterm covers chapters 2, 3, 4 and 6.
The midterm is due by Wednesday, April 8, 2015, 11:59pm CST. No exceptions!
You may print the midterm, highlight the answers, scan and upload it, or,
you may highlight the answers using the Word feature and then submit it.
Make sure to include your last name when saving the file. E.g. Fiala_Midterm

The maximization or minimization of a quantity is the

a.	goal of management science.
b.	decision for decision analysis.
c.	constraint of operations research.
d.	objective of linear programming.

Decision variables

a.	tell how much or how many of something to produce, invest, purchase, hire, etc.
b.	represent the values of the constraints.
c.	measure the objective function.
d.	must exist for each constraint.

Which of the following is a valid objective function for a linear programming problem?

a.	Max 5xy
b.	Min 4x + 3y + (2/3)z
c.	Max 5x² + 6y²
d.	Min (x₁ + x₂)/x₃

Which of the following statements is NOT true?

a.	A feasible solution satisfies all constraints.
b.	An optimal solution satisfies all constraints.
c.	An infeasible solution violates all constraints.
d.	A feasible solution point does not have to lie on the boundary of the feasible region.

A solution that satisfies all the constraints of a linear programming problem except the nonnegativity constraints is called

a.	optimal.
b.	feasible.
c.	infeasible.
d.	semi-feasible.

Slack

a.	is the difference between the left and right sides of a constraint.
b.	is the amount by which the left side of a  constraint is smaller than the right side.
c.	is the amount by which the left side of a  constraint is larger than the right side.
d.	exists for each variable in a linear programming problem.

To find the optimal solution to a linear programming problem using the graphical method

a.	find the feasible point that is the farthest away from the origin.
b.	find the feasible point that is at the highest location.
c.	find the feasible point that is closest to the origin.
d.	None of the alternatives is correct.

Which of the following special cases does not require reformulation of the problem in order to obtain a solution?

a.	alternate optimality
b.	Infeasibility
c.	Unboundedness
d.	each case requires a reformulation.

The improvement in the value of the objective function per unit increase in a right-hand side is the

a.	sensitivity value.
b.	dual price.
c.	constraint coefficient.
d.	slack value.

As long as the slope of the objective function stays between the slopes of the binding constraints

a.	the value of the objective function won’t change.
b.	there will be alternative optimal solutions.
c.	the values of the dual variables won’t change.
d.	there will be no slack in the solution.

Infeasibility means that the number of solutions to the linear programming models that satisfies all constraints is

a.	at least 1.
b.	0.
c.	an infinite number.
d.	at least 2.

A constraint that does not affect the feasible region is a

a.	non-negativity constraint.
b.	redundant constraint.
c.	standard constraint.
d.	slack constraint.

Whenever all the constraints in a linear program are expressed as equalities, the linear program is said to be written in

a.	standard form.
b.	bounded form.
c.	feasible form.
d.	alternative form.

All of the following statements about a redundant constraint are correct EXCEPT

a.	A redundant constraint does not affect the optimal solution.
b.	A redundant constraint does not affect the feasible region.
c.	Recognizing a redundant constraint is easy with the graphical solution method.
d.	At the optimal solution, a redundant constraint will have zero slack.

All linear programming problems have all of the following properties EXCEPT

a.	a linear objective function that is to be maximized or minimized.
b.	a set of linear constraints.
c.	alternative optimal solutions.
d.	variables that are all restricted to nonnegative values.

To solve a linear programming problem with thousands of variables and constraints

a.	a personal computer can be used.
b.	a mainframe computer is required.
c.	the problem must be partitioned into subparts.
d.	unique software would need to be developed.

A negative dual price for a constraint in a minimization problem means

a.	as the right-hand side increases, the objective function value will increase.
b.	as the right-hand side decreases, the objective function value will increase.
c.	as the right-hand side increases, the objective function value will decrease.
d.	as the right-hand side decreases, the objective function value will decrease.

If a decision variable is not positive in the optimal solution, its reduced cost is

a.	what its objective function value would need to be before it could become positive.
b.	the amount its objective function value would need to improve before it could become positive.
c.	zero.
d.	its dual price.

A constraint with a positive slack value

a.	will have a positive dual price.
b.	will have a negative dual price.
c.	will have a dual price of zero.
d.	has no restrictions for its dual price.

The amount by which an objective function coefficient can change before a different set of values for the decision variables becomes optimal is the

a.	optimal solution.
b.	dual solution.
c.	range of optimality.
d.	range of feasibility.

The range of feasibility measures

a.	the right-hand-side values for which the objective function value will not change.
b.	the right-hand-side values for which the values of the decision variables will not change.
c.	the right-hand-side values for which the dual prices will not change.
d.	each of these choices are true.

The 100% Rule compares

a.	proposed changes to allowed changes.
b.	new values to original values.
c.	objective function changes to right-hand side changes.
d.	dual prices to reduced costs.

An objective function reflects the relevant cost of labor hours used in production rather than treating them as a sunk cost. The correct interpretation of the dual price associated with the labor hours constraint is

a.	the maximum premium (say for overtime) over the normal price that the company would be willing to pay.
b.	the upper limit on the total hourly wage the company would pay.
c.	the reduction in hours that could be sustained before the solution would change.
d.	the number of hours by which the right-hand side can change before there is a change in the solution point.

A section of output from The Management Scientist is shown here.

Variable	Lower Limit	Current Value	Upper Limit
1	60	100	120

What will happen to the solution if the objective function coefficient for variable 1 decreases by 20?

a.	Nothing. The values of the decision variables, the dual prices, and the objective function will all remain the same.
b.	The value of the objective function will change, but the values of the decision variables and the dual prices will remain the same.
c.	The same decision variables will be positive, but their values, the objective function value, and the dual prices will change.
d.	The problem will need to be resolved to find the new optimal solution and dual price.

A section of output from The Management Scientist is shown here.

Constraint	Lower Limit	Current Value	Upper Limit
2	240	300	420

What will happen if the right-hand-side for constraint 2 increases by 200?

a.	Nothing. The values of the decision variables, the dual prices, and the objective function will all remain the same.
b.	The value of the objective function will change, but the values of the decision variables and the dual prices will remain the same.
c.	The same decision variables will be positive, but their values, the objective function value, and the dual prices will change.
d.	The problem will need to be resolved to find the new optimal solution and dual price.

The dual value on the nonnegativitiy constraint for a variable is that variable’s

a.	sunk cost.
b.	surplus value.
c.	reduced cost.
d.	relevant cost.

The dual price measures, per unit increase in the right hand side of the constraint,

a.	the increase in the value of the optimal solution.
b.	the decrease in the value of the optimal solution.
c.	the improvement in the value of the optimal solution.
d.	the change in the value of the optimal solution.

Sensitivity analysis information in computer output is based on the assumption of

a.	no coefficient changes.
b.	one coefficient changes.
c.	two coefficients change.
d.	all coefficients change.

When the cost of a resource is sunk, then the dual price can be interpreted as the

a.	minimum amount the firm should be willing to pay for one additional unit of the resource.
b.	maximum amount the firm should be willing to pay for one additional unit of the resource.
c.	minimum amount the firm should be willing to pay for multiple additional units of the resource.
d.	maximum amount the firm should be willing to pay for multiple additional units of the resource.

Which of the following is not a question answered by sensitivity analysis?

a.	If the right-hand side value of a constraint changes, will the objective function value change?
b.	Over what range can a constraint’s right-hand side value without the constraint’s dual price possibly changing?
c.	By how much will the objective function value change if the right-hand side value of a constraint changes beyond the range of feasibility?
d.	By how much will the objective function value change if a decision variable’s coefficient in the objective function changes within the range of optimality?

Media selection problems usually determine

a.	how many times to use each media source.
b.	the coverage provided by each media source.
c.	the cost of each advertising exposure.
d.	the relative value of each medium.

To study consumer characteristics, attitudes, and preferences, a company would engage in

a.	client satisfaction processing.
b.	marketing research.
c.	capital budgeting.
d.	production planning.

The dual price for a constraint that compares funds used with funds available is .058. This means that

a.	the cost of additional funds is 5.8%.
b.	if more funds can be obtained at a rate of 5.5%, some should be.
c.	no more funds are needed.
d.	the objective was to minimize.

Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is

a.	Max 2M + 3B
b.	Min 4000 (M + B)
c.	Max 8000M + 12000B
d.	Min 2M + 3B

Modern revenue management systems maximize revenue potential for an organization by helping to manage

a.	pricing strategies.
b.	reservation policies.
c.	short-term supply decisions.
d.	All of the alternatives are correct.

The problem which deals with the distribution of goods from several sources to several destinations is the

a.	maximal flow problem
b.	transportation problem
c.	assignment problem
d.	shortest-route problem

The parts of a network that represent the origins are

a.	the capacities
b.	the flows
c.	the nodes
d.	the arcs

The objective of the transportation problem is to

a.	identify one origin that can satisfy total demand at the destinations and at the same time minimize total shipping cost.
b.	minimize the number of origins used to satisfy total demand at the destinations.
c.	minimize the number of shipments necessary to satisfy total demand at the destinations.
d.	minimize the cost of shipping products from several origins to several destinations.

The number of units shipped from origin i to destination j is represented by

a.	x_ij.
b.	x_ji.
c.	c_ij.
d.	c_ji.

Which of the following is not true regarding the linear programming formulation of a transportation problem?

a.	Costs appear only in the objective function.
b.	The number of variables is (number of origins) x (number of destinations).
c.	The number of constraints is (number of origins) x (number of destinations).
d.	The constraints’ left-hand side coefficients are either 0 or 1.

NETW 561 Wireless Technology Midterm Exam Answers

NETW 561 Wireless Technology Midterm Exam Answers

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(TCO A) Describe the evolution (1G through 4G) of wireless technology and discuss how this evolution has changed the landscape of the telecommunication market. (Points : 25)

(TCO B) The lecture lists five goals of the FCC. Apply those goals to wireless. Describe how each one might apply to today’s wireless market. (Points : 25)

(TCO C) Compare and contrast GSM and CDMA from a technology perspective for both network operation as well as the cell phone standpoint. (Points : 25)

4. (TCO D) Describe the applications and situations you would use SMS, GPRS, 1xRTT, and WAP. (Points : 25)

ECON 312 Week 4 Midterm Exam Answers

ECON 312 Week 4 Midterm Exam Answers

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(TCO 1) As a consequence of the condition of scarcity
(TCO 1) The opportunity cost of constructing a new public highway is the
(TCO 1) A nation can increase its production possibilities by
(TCO 1) Which expression is another way of saying “marginal benefit”?
(TCO 1) The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the
(TCO 1) The Soviet Union economy of the 1980s would best be classified as
(TCO 1) The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through
(TCO 1) Consumers express self-interest when they
(TCO 1) Which is not one of the five fundamental questions that an economy must deal with?
(TCO 1) The major “success indicator” for business managers in command economies like the Soviet Union and China in the past was
(TCO 2) An increase in demand means that
(TCO 2) At the point where the demand and supply curves intersect
(TCO 2) Black markets are associated with
(TCO 2) An increase in demand for oil along with a simultaneous increase in supply of oil will
(TCO 2) If Product Y is an inferior good, a decrease in consumer incomes will
(TCO 2) If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will increase quantity demanded by
(TCO 2) Total revenue falls as the price of a good is raised, if the demand for the good is
(TCO 2) You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:
(TCO 2) A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is
(TCO 2) When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition
(TCO 3) Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in two hours. You value your time at $11 an hour. The tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is
(TCO 3) Economic profits are equal to
(TCO 3) The main difference between the short run and the long run is that
(TCO 3) The law of diminishing returns only applies in cases where
(TCO 3) Marginal cost can be defined as the
(TCO 3) If the price of a fixed factor of production increases by 50 percent, what effect would this have on the marginal-cost schedule facing a firm?

(TCO 3) Mutual interdependence would tend to limit control over price in which market model?
(TCO 3) Under which market model are the conditions of entry into the market easiest?
(TCO 3) The production of agricultural products such as wheat or corn would best be described by which market model?
(TCO 3) The demand curve faced by a purely competitive firm
(TCO 3) A profit-maximizing firm in the short run will expand output
(TCO 3) A firm should increase the quantity of output as long as its
(TCO 3) The short-run supply curve for a competitive firm is the
(TCO 3) The classic example of a private, unregulated monopoly is
(TCO 3) Barriers to entry
(TCO 3) The demand curve confronting a nondiscriminating, pure monopolist is
(TCO 3) Which is the best example of price discrimination?
(TCO 3) In which industry is monopolistic competition most likely to be found?
(TCO 3) Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will
(TCO 3) A unique feature of an oligopolistic industry is
(TCO 3) A low concentration ratio means that
(TCO 3) In which set of market models are there the most significant barriers to entry?
(TCO 1) The four factors of production are
(TCO 1) Refer to the diagram below which is based on the Circular Flow Model in Chapter 2. Arrows (1) and (2) represent
(TCO 2) Refer to the diagram. An increase in quantity demanded is depicted by a
(TCO 2) Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game
(TCO 2) Which type of goods is most adversely affected by recessions?
(TCO 3) The following cost data are for a firm in the short run:
(TCO 1) Refer to the diagram. Points A, B, C, D, and E show
(TCO 3) Assume that the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their gambling monopoly. Economists refer to these expenditures as
(TCO 3) a.) A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist do to maximize profits? b.) Why might a business owner keep their business open but let it deteriorate, rather than shut it down? Will this profitability last?
(TCO 2) Evaluate how the following situations will affect the demand curve for iPods.

(TCO 1) As a student of economics, when you speak of scarcity, you are referring to the ability of society to
(TCO 1) The idea in economics that “there is no free lunch” means that
(TCO 1) (TCO 1) The law of increasing opportunity costs indicates that
(TCO 1) A tradeoff exists between two economic goals, X and Y. This tradeoff means that
(TCO 1) Which would not be considered as a capital resource of a business by an economist?
(TCO 1) The economy of Germany would best be classified as:
(TCO 1) Markets in which firms sell their output of goods and services are called
(TCO 1) Laissez-faire capitalism is characterized by
(TCO 1) Which is not one of the five fundamental questions that an economy must deal with?
(TCO 1) The major “success indicator” for business managers in command economies like the Soviet Union and China in the past was
(TCO 2) An increase in demand means that
(TCO 2) At the point where the demand and supply curves intersect
(TCO 2) Black markets are associated with
(TCO 2) A headline reads “Lumber Prices Up Sharply.” In a competitive market, this situation would lead to a(n)
(TCO 2) For most products, purchases tend to fall with decreases in buyers’ incomes. Such products are known as
(TCO 2) When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is
(TCO 2) Total revenue falls as the price of a good is raised, if the demand for the good is
(TCO 2) The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that
(TCO 2) To economists the main differences between “the short run” and “the long run” are that
(TCO 2) Airlines charge business travelers more than leisure travelers because there is a more
(TCO 3) Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in two hours. You value your time at $11 an hour. The tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is
(TCO 3) Economic profits are equal to
(TCO 3) The main difference between the short run and the long run is that
(TCO 3) Fixed costs are those costs which are
(TCO 3) At an output of 20,000 units per year, a firm’s variable costs are $80,000 and its average fixed costs are $3. The total costs per year for the firm are:
(TCO 3) If the price of a fixed factor of production increases by 50 percent, what effect would this have on the marginal-cost schedule facing a firm?
(TCO 3) Which market model assumes the least number of firms in an industry?
(TCO 3) Local electric or gas utility companies mostly operate in which market model?
(TCO 3) The fast-food restaurants would be an example of which market model?
(TCO 3) Sam owns a firm that produces tomatoes in a purely competitive market. The firm’s demand curve is
(TCO 3) T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should
(TCO 3) A firm should always continue to operate at a loss in the short run if
(TCO 3) The short-run supply curve for a competitive firm is the
(TCO 3) One feature of pure monopoly is that the monopolist is
(TCO 3) Barriers to entry
(TCO 3) The demand curve confronting a nondiscriminating, pure monopolist is
(TCO 3) Which is the best example of price discrimination?
(TCO 3) Monopolistic competition is characterized by firms
(TCO 3) Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will
(TCO 3) A unique feature of an oligopolistic industry is
(TCO 3) You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that
(TCO 3) A major reason that firms form a cartel is to
(TCO 1) Money is not an economic resource because
(TCO 1) Refer to the diagram which is based on the Circular Flow Model in Chapter 2. Arrows (3) and (4) represent
(TCO 2) Refer to the diagram. A decrease in demand is depicted by a
(TCO 2) Refer to the information and assume the stadium capacity is 5,000. If the Mudhens’ management charges $7 per ticket
(TCO 2) Which type of goods is most adversely affected by recessions?
(TCO 3) The following cost data are for a firm in the short run:…..What is the …..?
(TCO 1) Refer to the diagram. Points A, B, C, D, and E show
(TCO 3) Any activity designed to transfer income or wealth to a particular individual or firm at society’s expense is called
(TCO 3) a.) Do you agree or disagree with the statement that: “A monopolist always charges the highest possible price.”? Explain. b.) Why can’t an individual firm raise its price by reducing output or lower its price to increase sales volume in a purely competitive market?
(TCO 2) What effect should each of the following have on the demand for gasoline in a competitive market? State what happens to demand. Explain your reasoning in each case and relate it to a demand determinant.

BSOP 588 Midterm Exam 100% Correct Answers

BSOP 588 Midterm Exam 100% Correct Answers

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Question (TCO A) Compare and contrast the evolution of quality and the role it played in the management of U.S. and Japanese business firms from the 1950s to the present.
Question (TCO B) Compare and contrast the following definitions of quality. Definition 1: Quality is the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs. Definition 2: Quality is meeting or exceeding customer expectations.
Question (TCO A) Explain the three core principles of total quality.
Question (TCO H) Identify and discuss five differences between service and manufacturing organizations.
Question (TCO B) Cite two ways that the accounting function can contribute to the achievement of quality.
Question (TCO C) Deming states that knowledge is not possible without theory, and experience alone does not establish a theory. Explain this statement as it applies to management decision making.

Question (TCO G) Cite three ways that middle management can impede an organization’s transition towards a total quality environment. Why is it important that middle management be supportive of a total quality initiative?
Question (TCO H) Identify and discuss the five key dimensions of service quality.
Question (TCO D) The criteria for Performance Excellence for the Malcolm Baldrige award consist of a hierarchical set of categories, items, and areas to address. Which of the following four is NOT one of them?
Question (TCO E) “Moments of truth” are instances when:
Question (TCO F) The ability of an organization to change in order to deal with increasingly hyper-turbulent environments is referred to as:
Question (TCO A) The finance function is responsible for:

(TCO A) Discuss how a fast-food restaurant could measure its quality effectiveness using each of the following definitions of quality: product-based, user-based, value-based, and manufacturing-based.
(TCO B) Explain each of the following statements as they apply to modern quality management.
(TCO A) Explain the three core principles of total quality.
(TCO H) Discuss how front-line employees are critical to customer assessment of service quality. Identify the challenges faced by front-line employees.
(TCO B) Cite two ways that the accounting function can contribute to the achievement of quality.
(TCO C) Deming states that knowledge is not possible without theory, and experience alone does not establish a theory. Explain this statement as it applies to management decision making.

(TCO A) Contrast the mindset of management under total quality and more traditional management structures with respect to employees, manufacturing, and leadership.
(TCO B) Explain each of the following statements as they apply to modern quality management. a. Customer service is the rule, not the exception. b. The absence of defects is a given rather than a source of competitive advantage.
(TCO A) Describe the relationship between quality and personal values.
(TCO H) Identify and discuss five differences between service and manufacturing organizations.
(TCO B) Cite two ways that the accounting function can contribute to the achievement of quality.
(TCO C) Compare and contrast the quality philosophies of Deming and Juran.

Page 2

(TCO G) Discuss the concept of best practices and their effect on quality management success.
(TCO H) Identify and discuss the five key dimensions of service quality. Given an example of a service and describe how a customer may define quality along each of these dimensions.
(TCO D) The criteria for Performance Excellence for the Malcolm Baldrige award consist of a hierarchical set of categories, items, and areas to address. Which of the following four is NOT one of them?
(TCO E) According to Kano’s classification of customer requirements, a cup of coffee that is served hot and fresh at a restaurant specializing in breakfasts fits which class of customer requirements?
(TCO F) Characteristics of effective strategic leadership include all of the following EXCEPT:
(TCO A) General-purpose financial statements are the product of:

OPMA 3306 Operations Management Midterm Exam

OPMA 3306 Operations Management Midterm Exam

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Question 1

Two managers are debating the consequences of adding something – we’ll call it “Component X” – to their firm’s product-service bundle. Pat says that adding Component X is going to really improve the firm’s business. Francis says that adding Component X is necessary just to keep up with competitors. If Pat is right, that means Component X is a(n) ____________. If Francis is right, that means Component X is a(n)

_______________.

Answers: A. Order-winner; order-qualifier

Order-qualifier; order-winner

Order-quantifier; order-qualifier

Advantage-sustainer; advantage-eroder

Advantage-eroder; advantage-sustainer

Question 2

It costs $115 to place an order for inventory item Q54 regardless of the order quantity. Item Q54’s purchase cost is $29.22, and demand for Q54 is 50 units per month. Holding cost (annual) for Q54 is estimated at 15% of the purchase cost. What is the optimum time between orders for Q54?

Answers: A. Not in excess of 2 months

In excess of 2 months but not in excess of 3 months

In excess of 3 months but not in excess of 4 months

In excess of 4 months but not in excess of 5 months

In excess of 5 months

Question 3

Actual and forecasted demand for the last six periods was as follows:

Period Demand Forecast

1 60 63

2 58 54

3 64 70

4 56 58

5 66 67

6 62 54

What was MAPE in this scenario?

Answers: A. Not in excess of 1.0%

In excess of 1.0% but not in excess of 1.1%

In excess of 1.1% but not in excess of 1.2%

In excess of 1.2% but not in excess of 1.3%

In excess of 1.3%

Question 4

A decision-maker has to choose from among four mutually exclusive capacity options. Each option has a payoff associated with future demand states. The options and associated payoffs (in $millions) are as follows:

Options

Demand Standing Small Subcontract Large

States Pat Expansion Hybrid Expansion

Slow -5.0 1.0 -2.0 -6.0

Modest 0.0 3.0 4.0 -3.0

Booming 0.0 4.5 4.0 7.0

Suppose that the probability of a Booming demand state is 0.3. Further suppose that the Slow and Modest demand states are equally likely. What would be the expected value of perfect information in this scenario?

Answers: A. Not in excess of $1 million

In excess of $1 million but not in excess of $1.05 million

In excess of $1.05 million but not in excess of $1.08 million

In excess of $1.08 million but not in excess of $1.09 million

In excess of $1.09 million

Question 5

Which of the following is factor underpinning the flow shop’s advantage over the job shop?

Answers: A. Ease of changeover to accommodate greater product variety

Efficiencies in per-unit variable cost made possible by special-purpose equipment

Small batch quantities that facilitate marketing to more heterogeneous market Segments

Both A and C

None of the above

Question 6

Marketing has forecast that at almost any reasonable price annual demand for a new product will be for 8,000 units. Production of this product will generate $12,000 per year in fixed costs, with a variable cost per unit of $4.50. At what minimum price would producing/selling this item become a profitable endeavor?

Answers:

Not in excess of $4.25

In excess of $4.25 but not in excess of $6.50

In excess of $6.50 but not in excess of $8.75

In excess of $8.75 but not in excess of $11.00

In excess of $11.00

Question 7

Suppose two forecasting methods – call them FM1 and FM2 – are being compared. FM1’s MAD and MAPE are smaller than FM2’s. FM2’s MSE is smaller than FM1’s. If FM2 is determined to be the better choice, this must mean that in this situation:

Answers: A. Avoiding the occasional large error is important

Major changes in the fundamental demand pattern are expected in the future

Demand is expected to become less variable in the future

Fundamental changes in seasonal patterns have occurred

None of the above

Question 8

The following decision tree has been mapped out to help Sammy choose among three courses of action:

If Sammy chooses Option A over the others because Option A is “the least risky,” he’ll be passing up how much in expected value?

Answers: A. Not more than $10

More than $10 but not more than $30

More than $30 but not more than $50

More than $50 but not more than $70

More than $70

Question 9

If, for a given productive resource, you take into account things like the product mix and maintenance requirements, you are estimating ___________ rather than __________ capacity.

Answers: A. Pure; reactive

Theoretical (design); efficient

Forecasted; actual

Smoothed; random

Effective; theoretical (design)

Question 10

An analyst is evaluating two time-series forecasting techniques. Using data from the past, she notes that technique B would have performed better than technique A over the evaluation period. If she goes ahead and chooses technique B for future use, she must therefore be confident that __________.

Answers:

A fundamental assumption of time-series forecasting is invalid in this setting

Unprecedented trends or cycles will emerge in the future

Random variation is increasing in this time series

Important predictor variables are missing from Technique A

None of these

Question 11

Which of the following statements about the difference between services and manufactured goods is most appropriate?

Answers: A.

Services tend to involve tangible transformations to a greater degree than do manufactured goods.

None of the above statements is appropriate.

Manufactured goods tend to be produced for distinct, local markets, while services tend

to be produced and marketed for broad geographic regions.

In manufacturing, production and consumption can be greatly separated across time or

distance; in services, production and consumption often occur in close proximity.

Producing manufactured goods tends to be more labor-intensive than does producing

services.

Question 12

For a given inventory item, the appropriate risk of a stockout has been determined to be 12%. Demand for this item averages 20 units per week, with a standard deviation of 5.36 units. Lead time is a certain 3 weeks. What is the appropriate reorder point?

Answers: A. Not in excess of 68 units

In excess of 68 units but not in excess of 70 units

In excess of 70 units but not in excess of 72 units

In excess of 72 units but not in excess of 74 units

In excess of 74 units

Question 13

A forecasting analyst has available the following data from previous time periods:

Actual

Month Demand

June 612

July 594

August 598

September 606

Exponential smoothing with a = 0.4 is used. Assuming the May forecast was for 607, October’s

forecast would be

Answers: A. 623.0

609.0

607.0

603.0

Can’t be determined with this information

Question 14

A forecasting analyst has available the following data from previous time periods:

Actual

Month Demand

June 612

July 594

August 598

September 606

What would the October forecast be if a two-period moving average were used?

Answers: A. 603.0

602.0

607.0

623.0

609.0

Question 15

PTC is manufacturing and assembling a small number of complex catalytic winders. The first winder requiredm500 direct labor-hours, and it looks as if the second will require only 475. If a total of four winders are ultimately manufactured and assembled, what will be the total direct labor requirements?

Answers:

Not more than 1,800 hours

More than 1,800 hours but not more than 1,810 hours

More than 1,810 hours but not more than 1,840 hours

More than 1,840 hours but not more than 1,890 hours

More than 1,890 hours

Question 16

Suppose that last year it cost $12 to hold a unit in inventory for a year. If this year holding cost will be $14 but everything else remains the same, which of the following must be true?

Answers: A. The optimum order quantity will increase

The optimum order quantity will remain unchanged

The optimum order quantity will double

The optimum order quantity will decrease

None of the above

Question 17

If everything goes right, it takes six minutes to assemble a squidgeroo. The employee responsible for assembling the squidgeroo works an eight-hour shift, but the work center must be shut down for four minutes three times per shift for required maintenance. For the most recent eight-hour shift worked, output was 74 units. What was utilization?

Answers: A. Not in excess of 90%

In excess of 90% but not in excess of 92%

In excess of 92% but not in excess of 94%

In excess of 94% but not in excess of 96%

In excess of 96%

Question 18

It would be difficult to classify most firms as either “pure service” or “pure manufacturer.” This is because most of what’s sold in today’s economy can be categorized as ___________.

Answers: A. Outsourced

Green

Product-service bundles

Order qualifying

Order winning

Question 19

When demand grows or diminishes at a predictable rate over some period of time, that is referred to

Answers: A. Cyclicality

Trend

Seasonality

Exponentiality

None of the above

Question 20

In industry X, customers are becoming less interested in product variety and more interested in a low price. Process choice in this industry should be trending more toward the ___________ end of the process continuum and away from the ___________ end of the process continuum.

Answers: A. Job shop; flow shop

Process shop; product shop

Flow shop; job shop

Project shop; process shop

Batch shop; queue shop

Question 21

A decision-maker has to choose from among four mutually exclusive capacity options. Each option has a payoff associated with future demand states. The options and associated payoffs (in $millions) are as follows:

Options

Demand Standing Small Subcontract Large

States Pat Expansion Hybrid Expansion

Slow -5.0 1.0 -2.0 -6.0

Modest 0.0 3.0 4.0 -3.0

Booming 0.0 4.5 4.0 7.0

Suppose that the probability of a Booming demand state is 0.3. Further suppose that the Slow and Modest demand states are equally likely. What would be the expected value of the option that should be chosen?

Answers:

Not in excess of $1.75 million

In excess of $1.75 million but not in excess of $2.15 million

In excess of $2.15 million but not in excess of $2.65 million

In excess of $2.65 million but not in excess of $3.15 million

In excess of $3.15 million

Question 22

Process choice J has monthly fixed costs of $10,000 and variable costs of $25 per unit. Process

choice K has monthly fixed costs of $13,000 and variable costs of $24 per unit. Which of the

following statements is correct?

Answers: A. Process J is the better choice so long as monthly demand is less than 2,800 units.

Process K is the better choice so long as monthly demand exceeds 3,000 units.

Process J is the better choice so long as annual demand is in excess of 40,000 units.

Process J and K have identical costs at an annual demand of 15,000 units.

None of the above statements is accurate.

Question 23

If a firm chooses to structure its processes at the flow shop end of the process continuum, that firm typically will be pursuing ___________ with ____________ technology.

Answers: A. Disceconomies of scope; general-purpose but labor-intensive

Economies of scale; specialized but capital-intensive

Economies of scale; general-purpose but labor-intensive

Economies of variation; flexible but capital-intensive

Economies of decentralization; rigid but labor-intensive

Question 24

Which of the following is a factor in determining the reorder point for an inventory item?

the item’s EOQ

the design capacity of the item’s work center

the item’s utilization

the item’s learning rate

none of the above are factors

Question 25

Every morning a florist must decide how many dozens of roses to stock. Roses have a shelf life f only one day, but at the end of the day unsold roses have a salvage value of $2 per dozen. Roses have a wholesale cost of $5 per dozen and a retail value of $19 per dozen. Historically, demand for roses has never been less than 20 dozen and never been in excess of 25 dozen, and demand for roses has been evenly distributed across this range (i.e., the probability of demand’s being for 20 dozen is equal to the probability of it’s being for 21 dozen, and so on). What is the optimum stocking quantity?

Answers: A. We would be indifferent between 22 dozen and 23 dozen

Not in excess of 22 dozen

24 dozen

22 dozen

Cannot be determined without more information

Question 26

Suppose annual demand for a given item is 1,200 units. For this item, ordering cost is $60 and the annual cost of holding a unit in inventory is $10. Further suppose that currently this item is ordered in quantities of 120.

How much money would be saved by switching to an optimal order quantity?

Selected Answer: A. Not in excess of $100

Answers: A. Not in excess of $100

In excess of $100 but not in excess of $200

In excess of $200 but not in excess of $600

In excess of $600 but not in excess of $1,000

In excess of $1,000

Question 27

For a given inventory item, demand averages 30 units per week, with a standard deviation of 4.2 units. Lead time for this item is a constant 3 weeks, and based on this lead time the reorder point has been set at 100 units. What is the stockout risk associated with this particular reorder point?

Answers: A. Not in excess of 5%

In excess of 5% but not in excess of 6.5%

In excess of 6.5% but not in excess of 8%

In excess of 8% but not in excess of 9.5%

In excess of 9.5%