Question 1

A process is a group of unrelated tasks with specific inputs and outputs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a characteristic of mass production?

Accepted Answer

A)   made-to-stock
B)   stable demand
C)   high product variety
D)   high product volumeE) A) and C)
F) B) and C)

Question 3

Planning, analyzing, and improving processes is the function of operations management.

Accepted Answer

A) True 
 B)False

Question 4

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives  For what level of volume (output)  would the firm prefer Process A to Process B?

Accepted Answer

A)   for all volume levels greater than 75,000
B)   for all volume levels greater than 97,500
C)   for all volume levels greater than 117,500
D)   for all volume levels greater than 125,000E) A) and C)
F) A) and B)

Question 5

Most of the operations in batch production involve assembly rather than fabrication.

Accepted Answer

A) True 
 B)False

Question 6

Disadvantages of batch production include all of the following except

Accepted Answer

A)   high per-unit costs.
B)   frequent changes in product mix.
C)   flexibility.
D)   scheduling problems.E) B) and D)
F) B) and C)

Question 7

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives.  The breakeven volume for Process A is

Accepted Answer

A)   50,000 units.
B)   62,500 units.
C)   30,000 units.
D)   20,000 units.E) A) and D)
F) A) and B)

Question 8

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives  If total demand (volume)  is 150,000 units, then the company should

Accepted Answer

A)   select Process A with a profit of $1,300,000 to maximize profit
B)   select Process B with a profit of $750,000 to maximize profit
C)   select Process A with a profit of $1,000,000 to maximize profit
D)   select Process B with a profit of $1,050,000 to maximize profitE) A) and B)
F) All of the above

Question 9

Most of the operations in batch production involve

Accepted Answer

A)   fabrication.
B)   assembly.
C)   continuous processing.
D)   outsourcing.E) A) and B)
F) A) and C)

Question 10

A company is considering producing a product for a new market. The fixed cost required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25 per product. If the product is sold for $35.00 each, the firm's breakeven volume would be

Accepted Answer

A)   50,000 units
B)   5,000 units
C)   2,500 units
D)   500 unitsE) B) and D)
F) A) and D)

Question 11

A print shop is an example of which of the following process choices?

Accepted Answer

A)   project
B)   batch production
C)   continuous production
D)   mass productionE) A) and B)
F) C) and D)

Question 12

Mass production is often associated with assembly lines.

Accepted Answer

A) True 
 B)False

Question 13

Supplier speed is rarely an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 14

The ease of adjusting resources in response to changes in demand defines a firm's

Accepted Answer

A)   vertical integration.
B)   process flexibility.
C)   customer involvement.
D)   capital intensity.E) None of the above
F) All of the above

Question 15

One-of-a-kind production of a product based on a customer's unique specifications is a called a project.

Accepted Answer

A) True 
 B)False

Question 16

Customers are rarely involved in a project that takes an extended period of time to complete.

Accepted Answer

A) True 
 B)False

Question 17

The organization's overall approach for producing goods and providing services is its process strategy.

Accepted Answer

A) True 
 B)False

Question 18

As process selection moves up the diagonal from project to continuous production

Accepted Answer

A)   demand volume increases.
B)   product variety increases.
C)   capital intensity decreases.
D)   flexibility increases.E) None of the above
F) A) and B)

Question 19

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives  If total demand (volume)  is 120,000 units, then the company should

Accepted Answer

A)   select Process A with a profit of $940,000 to maximize profit
B)   select Process B with a profit of $450,000 to maximize profit
C)   select Process A with a profit of $700,000 to maximize profit
D)   select Process B with a profit of $690,000 to maximize profitE) A) and B)
F) A) and C)

Question 20

Mass production is characterized by high volumes of a customized product for a mass market.

Accepted Answer

A) True 
 B)False

Exam 6: Processes and Technology

Planning, analyzing, and improving processes is the function of operations management.

Correct AnswerverifiedShow Answer

A print shop is an example of which of the following process choices?

Correct AnswerverifiedShow Answer

The organization's overall approach for producing goods and providing services is its process strategy.

Correct AnswerverifiedShow Answer

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives For what level of volume (output) would the firm prefer Process A to Process B?

Correct AnswerverifiedShow Answer

Mass production is often associated with assembly lines.

Correct AnswerverifiedShow Answer

Customers are rarely involved in a project that takes an extended period of time to complete.

Correct AnswerverifiedShow Answer

Mass production is characterized by high volumes of a customized product for a mass market.

Correct AnswerverifiedShow Answer

One-of-a-kind production of a product based on a customer's unique specifications is a called a project.

Correct AnswerverifiedShow Answer

A process is a group of unrelated tasks with specific inputs and outputs.

Correct AnswerverifiedShow Answer

Disadvantages of batch production include all of the following except

Correct AnswerverifiedShow Answer

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives If total demand (volume) is 120,000 units, then the company should

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of mass production?

Correct AnswerverifiedShow Answer

Most of the operations in batch production involve

Correct AnswerverifiedShow Answer

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives If total demand (volume) is 150,000 units, then the company should

Correct AnswerverifiedShow Answer

A company is considering producing a product for a new market. The fixed cost required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25 per product. If the product is sold for $35.00 each, the firm's breakeven volume would be

Correct AnswerverifiedShow Answer

As process selection moves up the diagonal from project to continuous production

Correct AnswerverifiedShow Answer

Supplier speed is rarely an important consideration in outsourcing decisions.

Correct AnswerverifiedShow Answer

The ease of adjusting resources in response to changes in demand defines a firm's

Correct AnswerverifiedShow Answer

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. The breakeven volume for Process A is

Correct AnswerverifiedShow Answer

Most of the operations in batch production involve assembly rather than fabrication.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified