Question 1

The ________ process includes the production of one-of-a-kind items as well as unit production.

Accepted Answer

A job-shop process is characterized by producing customized or one-of-a-kind items. This process is flexible and can take on a variety of orders, making it suitable for generating unique products. The other options, such as assembly line, serial, parallel, and fixed position, are typically used for unit production or repetitive tasks.

Question 2

Return on investment is an example of a(n)________ ratio.

Accepted Answer

Return on investment (ROI) is a measure of profitability. It shows how much profit is generated for each dollar of investment.

Question 3

Which of the following techniques is best suited to analyze the financial position of an organization?

Accepted Answer

Ratio analysis is the best technique to analyze the financial position of an organization. It involves the evaluation of financial ratios such as liquidity ratios, profitability ratios, asset turnover ratios, etc. These ratios provide insight into the financial health and performance of the organization and help in making important financial decisions. Process modelling, motion-study techniques, value analysis, and functional analysis are not specifically designed to analyze the financial position of an organization.

Question 4

Which of the following outlines the financial plan of an organization for a particular period?

Accepted Answer

A budget outlines the financial plan of an organization for a particular period. An income statement shows the revenues and expenses of the organization, a balance sheet shows the assets and liabilities of the organization, HR design refers to the structure and function of the organization's human resources department, and product layout refers to the physical arrangement of materials and equipment in a manufacturing process, none of which specifically outline the financial plan.

Question 5

The process used to manufacture beer is a product-oriented,high-volume,and low-variety process.This can be called a(n)________ process.

Accepted Answer

The process used to manufacture beer involves a continuous flow of materials and a high level of automation. It is an example of a continuous process where the finished product is produced in a continuous and uninterrupted manner. The process involves a high volume of output, with relatively low variety as the product (i.e. beer) is consistently manufactured with the same basic ingredients and methods.

Question 6

Which of the following is the first stage in a cost control program?

Accepted Answer

The first stage in a cost control program is to establish standard or planned cost amounts. This sets the foundation for measuring actual costs incurred and comparing them to the planned amounts, which are the subsequent stages in the program. Making changes to reduce costs, measuring actual costs incurred, and measuring actual material and process costs incurred all come after establishing the planned cost amounts.

Question 7

Which layout strategy would be most appropriate for an organization with a limited number of different products that require high production volumes,highly specialized equipment,and narrow employee skills?

Accepted Answer

A product layout is the most appropriate strategy for an organization with a limited number of different products that require high production volumes, highly specialized equipment, and narrow employee skills. In a product layout, the equipment and machinery are arranged in a sequence that follows the production process, and workers specialize in performing specific tasks to produce high volumes of standardized products efficiently. This layout strategy allows the organization to optimize the use of specialized equipment and minimize material handling, reducing production time and costs.

Question 8

Tom's company repairs machines only after they have malfunctioned.This is an example of ________.

Accepted Answer

Tom's company has a pure-breakdown policy, meaning they only perform repairs after a machine has broken down or malfunctioned, rather than regularly scheduled maintenance.

Question 9

Which of the following ratios would be most useful to obtain quantitative information on the company's inventory management processes?

Accepted Answer

Activity ratios, such as inventory turnover ratio and days inventory held ratio, provide quantitative information on a company's inventory management processes. These ratios indicate how efficiently the company is managing its inventory by measuring the time it takes to sell inventory and how often the inventory is being turned over. This information is important in determining if the company is effectively managing its inventory and if there are any areas for improvement.

Question 10

________ are operational tools used to establish labor standards and are useful for planning,control,productivity improvements,costing and pricing,bidding,compensation,motivation,and financial incentives.

Accepted Answer

Work measurement methods, such as time study and predetermined motion time systems, are specific techniques used to establish labor standards. These labor standards provide a basis for planning production schedules, controlling costs, improving productivity, and determining fair compensation and financial incentives for employees. Therefore, work measurement methods are essential operational tools for various aspects of human resource management. Manpower plans, motion-study techniques, work method analyses, and job design strategies are also important HR tools, but they do not specifically focus on establishing labor standards.

Question 11

Inventory turnover is an example of a(n)________ ratio.

Accepted Answer

Inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. This is an example of an activity ratio, which measures how efficiently a company is using its resources to generate revenue.

Question 12

The operational study revealed that the company's inventory turnover is slow.This has forced them to maintain high levels of liquidity.Which of the following ratios is best suited to analyze the company's short-term solvency?

Accepted Answer

The current ratio is the best choice to analyze the company's short-term solvency as it measures the ability of a company to meet its short-term obligations with its current assets. The fact that the company maintained high levels of liquidity due to slow inventory turnover indicates that its ability to pay its short-term obligations may be weak, and the current ratio will provide insights into the company's short-term solvency. Return on investment, equity ratio, and debt ratio are measures of profitability, financial strength, and leverage, respectively, and are not directly related to short-term solvency. Activity ratios, on the other hand, measure the efficiency of a company in managing its assets and can be relevant to assessing the company's ability to meet its short-term obligations, but the current ratio provides a more straightforward insight into short-term solvency.

Question 13

________ layout is a layout pattern that groups together similar types of equipment.

Accepted Answer

The answer of ________ layout is a layout pattern that...

Question 14

________ is an operations control activity that determines the flow of materials from vendors through an operations system to customers.

Accepted Answer

Materials control is an operations control activity that determines the flow of materials from vendors through an operations system to customers. Just-in-time philosophy, zero-based control, work scheduling, and production planning are different activities that may be integrated into materials control but do not specifically define it.

Question 15

A budget that automatically indicates an increase in the amount of resources allocated for various organizational activities when production levels go up is called a(n)________.

Accepted Answer

A variable budget adjusts based on changes in the level of activity, such as production levels, making it the correct choice for a budget that automatically indicates an increase in resources when production levels go up.

Question 16

________ is a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility only when it is about to be used.

Accepted Answer

Just-in-time control is a technique for reducing inventories by arranging for production components to be delivered to the production facility only when it is about to be used. This helps to minimize inventory costs and improve efficiency in production processes.

Question 17

A manufacturing company that produces plastic products creates a plan that outlines the different ways of managing the transformation process.The plan contains detailed information about aspects such as the handling of materials,operation of the assembly line,and the labor used in production.This plan of action is called a ________ strategy.

Accepted Answer

A process strategy focuses on how the transformation process is managed, including the handling of materials and the operation of the assembly line. This aligns with the details outlined in the company's plan. Product strategy focuses on the characteristics of the product being produced, development strategy focuses on the development of new products or processes, layout strategy focuses on the physical arrangement of resources, and capacity strategy focuses on meeting demand levels.

Question 18

A company uses current ratio to analyze its financial position.Which of the following information can be obtained from current ratio?

Accepted Answer

Current ratio is a liquidity ratio that measures a company's ability to pay off its short-term liabilities with its current assets. Therefore, it provides information on the short-term solvency of the company. Efficiency of inventory management (A) can be obtained from inventory turnover ratio, productivity of assets (B) can be obtained from asset turnover ratio, information on the total debt of the company (D) can be obtained from debt-to-equity ratio or total debt ratio, and information on financial leverage (E) can be obtained from leverage ratios such as debt-to-equity ratio or debt ratio.

Question 19

Which of the following ratios is best suited to analyze how the company finances its projects?

Accepted Answer

The debt ratio is a ratio that measures the amount of debt relative to the total assets of a company. This ratio can help to analyze how a company finances its projects as it indicates the extent to which a company relies on debt financing to fund its operations. A high debt ratio suggests that a company may have higher financial risk as its ability to repay its debts may be impacted by changes in economic conditions or other factors.

Question 20

Which of the following process strategies is characteristic of the auto and appliance industries?

Accepted Answer

The answer of Which of the following process strategies is...

Quiz 21: Production and Control