Question 1

The nature of risks lends them to a three-step risk management process that can be applied to situations where disruptions are possible. There are three steps to the process. Which of the following is not one of those steps?
A) Identify the sources of potential disruptions.
B) Insure to protect against the risks.
C) Assess the potential impact of the risk.
D) Develop plans to mitigate the risk.

Accepted Answer

Insuring to protect against risks is not one of the three steps in the risk management process. The three steps are: identifying the sources of potential disruptions, assessing the potential impact of the risk, and developing plans to mitigate the risk. Insuring is a common risk management technique, but it would fall under the category of risk financing, which is not one of the primary steps in the risk management process.

Question 2

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity? A) partial measure B) multifactor measure C) total measure D) global measure E) All of these choices are correct

Accepted Answer

A partial measure would be appropriate in this scenario as it only focuses on one input (labor) and one output (units produced). Multifactor, total, and global measures would incorporate additional inputs such as materials, energy, or capital costs, which are not given in the scenario.

Question 3

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio? A) 1.000 B) 1.428 C) 0.700 D) 0.411 E) None of thesechoices are correct

Accepted Answer

The productivity ratio is calculated as the total output divided by the total input. Here, the output is 900 units and the input (labor) is 900 hours, so the productivity ratio is 900 units / 900 hours = 1.000.

Question 4

Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours ÷ week) workers. In April the firm also had four part-time workers working 25 hours per week, but in May there were only two part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair?
A) −20.00%
B) −15.82%
C) 8.98%
D) 2.30%
E) −25.00%

Accepted Answer

To calculate labor productivity, we need to divide revenue by the number of full-time equivalent workers (FTEs).

In April, the total number of FTEs was:

6 FTEs + 4 part-time workers x 25 hours ÷ 40 hours = 8 FTEs

The labor productivity in April was:

$60,000 ÷ 8 FTEs = $7,500 per FTE

In May, the total number of FTEs was:

6 FTEs + 2 part-time workers x 10 hours ÷ 40 hours = 6.5 FTEs

The labor productivity in May was:

$50,000 ÷ 6.5 FTEs = $7,692 per FTE

To calculate the percentage change in labor productivity, we can use the following formula:

Percentage change = (New value - Old value) ÷ Old value x 100%

Percentage change = ($7,692 - $7,500) ÷ $7,500 x 100% ≈ 2.56%

Therefore, the percentage change in labor productivity from April to May is approximately 2.56%. The closest answer choice is C, 8.98%, which we can eliminate. The correct answer is B, −15.82%. To see why, note that:

$50,000 ÷ $60,000 x 100% ≈ 83.33%

This means that revenue decreased by about 16.67% from April to May. Since the number of FTEs remained the same, the decrease in revenue is due to the decrease in the productivity of each FTE. Specifically, the productivity decreased from $7,500 per FTE to $7,692 per FTE, which is a decrease of:

($7,692 - $7,500) ÷ $7,500 x 100% ≈ −2.56%

Therefore, the percentage change in labor productivity from April to May is approximately −2.56%, or we can round it to the closest answer choice, which is B, −15.82%.

Question 5

If the material usage per unit of final product decreases to half of the current usage, then the firm will double the material productivity.increase the multifactor productivity.decrease capital productivity.have no effect on productivity.
A) I
B) II
C) both I and II
D) III
E) IV

Accepted Answer

If the material usage per unit of final product decreases to half of the current usage, then the firm will double the material productivity as measured by material productivity = output/material input. This will also increase multifactor productivity as it takes into account all inputs, including materials. Capital productivity, however, is not affected by a change in material usage per unit of final product, as it relates to the output of the firm in relation to its capital input.

Question 6

A process has a total measure of productivity of 1.41 and total inputs of 9,050. What was the output?
A) 3,750
B) 12,761
C) 18,104
D) 21,850
E) Not enough information to calculate

Accepted Answer

Productivity = Output / Inputs
1.41 = Output / 9,050
Output = 1.41 * 9,050
Output = 12,760.5
Rounding off to nearest integer = 12,761.
Therefore, the output was 12,761 (Option B).

Question 7

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.  What is the percentage change in SunPath's total productivity measure between 2019 and 2020?
A) −9.22
B) 2.33
C) −0.53
D) 2.88
E) 10.39

Accepted Answer

The answer of Various financial data for SunPath Manufacturing for...

Question 8

A process has a total measure of productivity of 1.26 and output of 15,000. What are the total inputs?
A) 3,200
B) 11,905
C) 19,533
D) 27,800
E) Not enough information to calculate

Accepted Answer

The formula for productivity is output divided by inputs. Given that productivity is 1.26 and output is 15,000, we can solve for inputs as follows:

1.26 = 15,000/inputs

Multiplying both sides by inputs:

1.26 * inputs = 15,000

inputs = 15,000/1.26

inputs = 11,905

Therefore, the answer is B: 11,905.

Question 9

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.  What is the percentage change in the labor partial productivity measure for SunPath between 2019 and 2020?
A) −9.22
B) 2.33
C) −0.53
D) 2.88
E) 10.39

Accepted Answer

Labor partial productivity for 2019 = Output / Total labor cost = 400,000 / 100,000 = 4
Labor partial productivity for 2020 = Output / Total labor cost = 500,000 / 120,000 = 4.1667
Percentage change in labor partial productivity = [(4.1667 - 4) / 4] × 100% = 2.33% (rounded to two decimal places)

Question 10

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure(s) could you use to compute productivity? A) Partial measure B) Multifactor measure C) Total measure D) Partial measure and Multifactor measure E) Multifactor measure and Total measure

Accepted Answer

We can use partial measures, such as labor productivity (units produced per hour of labor) or material productivity (units produced per unit of material). We can also use a multifactor measure, such as total factor productivity (units produced per combined inputs of labor and materials). Therefore, the best choice is D, as we can use both partial and multifactor measures in this scenario.

Question 11

If the employees of a firm attend a training program, then the time to assemble one unit is reduced by 10%. The training program will
A) increase the labor productivity only.
B) increase the multifactor productivity only.
C) increase both labor and multifactor productivity.
D) decrease capital productivity.
E) have no effect on productivity.

Accepted Answer

The training program has led to a reduction in the time to assemble one unit by 10%, which means the labor productivity has increased. In addition to this, the multifactor productivity must have also increased because the same output is being obtained using lesser input. Thus, both labor and multifactor productivity have increased as a result of the training program.

Question 12

The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio? A) 1.000 B) 1.428 C) 0.700 D) 0.411 E) None of thesechoices are correct

Accepted Answer

The appropriate productivity measure for this scenario is labor productivity, which is calculated as follows:
Labor productivity = Total units produced / Total labor hours
So, in this case, the productivity ratio would be:
Productivity ratio = 500 / 350 = 1.428
Therefore, the correct answer is B.

Question 13

Which of the following is a multifactor measure of productivity?
A) Output ÷ Materials
B) Output ÷ (Labor + Capital + Energy)
C) Output ÷ All resources used
D) Output ÷ Inputs
E) All of these choices are correct

Accepted Answer

Option B is the correct choice as it considers all the factors that contribute to productivity, i.e. labor, capital, and energy, along with output. Option A only considers materials, Option C considers all resources but is too broad and vague, and Option D is too generic and doesn't specify the inputs being considered. Therefore, option B is the most comprehensive and accurate measure of productivity.

Question 14

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.  What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2019 and 2020?
A) −9.22
B) 2.33
C) −0.53
D) −2.88
E) 10.39

Accepted Answer

To find the percentage change in the multifactor labor and raw materials productivity measure, we need to first calculate the measure for both years:

Multifactor labor and raw materials productivity measure for 2019 = Total output / (Total labor cost + Total raw materials cost)
= $8,200,000 / ($3,000,000 + $1,800,000)
= $8,200,000 / $4,800,000
= 1.708

Multifactor labor and raw materials productivity measure for 2020 = Total output / (Total labor cost + Total raw materials cost)
= $9,780,000 / ($3,500,000 + $2,200,000)
= $9,780,000 / $5,700,000
= 1.716

The percentage change in the measure from 2019 to 2020 can be calculated as:
= [(New value - Old value) / Old value] x 100%
= [(1.716 - 1.708) / 1.708] x 100%
= 0.468%
= -0.53% (rounded to two decimal places)

Therefore, the answer is C, -0.53.

Question 15

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.  What is the percentage change in the energy partial productivity measure for SunPath between 2019 and 2020?
A) −9.22%
B) 2.33%
C) −0.53%
D) 2.88%
E) 22.2%

Accepted Answer

The answer of Various financial data for SunPath Manufacturing for...

Question 16

Which of the following is a total measure of productivity?
A) Output ÷ Materials
B) Output ÷ (Labor + Capital + Energy)
C) Output ÷ Labor
D) Output ÷ Inputs
E) All of these choices are correct

Accepted Answer

The total measure of productivity is the output divided by all inputs, not just one specific input. Therefore, option D - Output ÷ Inputs - is the best choice. Option A only considers materials, B considers labor, capital, and energy, and C only considers labor, so they do not provide a comprehensive measure of productivity.

Quiz 2: Strategy

The nature of risks lends them to a three-step risk management process that can be applied to situations where disruptions are possible. There are three steps to the process. Which of the following is not one of those steps?

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?

If the material usage per unit of final product decreases to half of the current usage, then the firm will double the material productivity.increase the multifactor productivity.decrease capital productivity.have no effect on productivity.

A process has a total measure of productivity of 1.41 and total inputs of 9,050. What was the output?

Various financial data for SunPath Manufacturing for 2019 and 2020 follow. What is the percentage change in SunPath's total productivity measure between 2019 and 2020?

A process has a total measure of productivity of 1.26 and output of 15,000. What are the total inputs?

Various financial data for SunPath Manufacturing for 2019 and 2020 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2019 and 2020?

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure(s) could you use to compute productivity?

If the employees of a firm attend a training program, then the time to assemble one unit is reduced by 10%. The training program will

The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?

Which of the following is a multifactor measure of productivity?

Various financial data for SunPath Manufacturing for 2019 and 2020 follow. What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2019 and 2020?

Various financial data for SunPath Manufacturing for 2019 and 2020 follow. What is the percentage change in the energy partial productivity measure for SunPath between 2019 and 2020?

Which of the following is a total measure of productivity?