Question 1

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

Accepted Answer

A) True 
 B)False

Question 2

Mass production is characterized by the use of specialized equipment and workers with limited skills.

Accepted Answer

A) True 
 B)False

Question 3

Producing a high volume of a single product is a characteristic of batch production.

Accepted Answer

A) True 
 B)False

Question 4

Mass production is often associated with assembly lines.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not an advantage of batch production?

Accepted Answer

A)  frequent changes in product mix
B)  flexibility
C)  customization of output
D)  quality reputationE) A) and D)
F) A) and B)

Question 6

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Accepted Answer

A) True 
 B)False

Question 7

Supplier reliability is often an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 8

Process design specifies what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

Accepted Answer

A) True 
 B)False

Question 9

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) A) and C)
F) A) and B)

Question 10

Most of the operations in batch production involve

Accepted Answer

A)  fabrication.
B)  assembly.
C)  continuous processing.
D)  outsourcing.E) A) and C)
F) None of the above A

Question 11

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with

Accepted Answer

A)  mass production.
B)  continuous production.
C)  projects.
D)  batch production.E) A) and B)
F) A) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Mass production systems tend to employ

Accepted Answer

A)  specialized equipment and limited labor skills.
B)  specialized equipment and specialized labor skills.
C)  general purpose equipment and limited labor skills.
D)  general purpose equipment and specialized labor skills.E) B) and C)
F) A) and B)

Question 14

Process planning determines how a manufactured good is produced or a service is provided.

Accepted Answer

A) True 
 B)False

Question 15

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

Accepted Answer

A)  6,000 units.
B)  6,429 units.
C)  72,500 units.
D)  90,000 units.E) A) and B)
F) All of the above D

Question 16

A firm's process strategy defines the extent of customer involvement in providing a service.

Accepted Answer

A) True 
 B)False  True

Question 17

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

Accepted Answer

A)  vertical integration.
B)  process flexibility.
C)  process planning.
D)  capital intensity.E) B) and C)
F) A) and B)

Question 18

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 break-even volume for Process B is

Accepted Answer

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

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Processes and Technology

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

Correct AnswerverifiedShow Answer

Mass production is characterized by the use of specialized equipment and workers with limited skills.

Correct AnswerverifiedShow Answer

Producing a high volume of a single product is a characteristic of batch production.

Correct AnswerverifiedShow Answer

Mass production is often associated with assembly lines.

Correct AnswerverifiedShow Answer

Which of the following is not an advantage of batch production?

Correct AnswerverifiedShow Answer

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Correct AnswerverifiedShow Answer

Supplier reliability is often an important consideration in outsourcing decisions.

Correct AnswerverifiedShow Answer

Process design specifies what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

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

Most of the operations in batch production involve

Correct AnswerverifiedA

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mass production systems tend to employ

Correct AnswerverifiedShow Answer

Process planning determines how a manufactured good is produced or a service is provided.

Correct AnswerverifiedShow Answer

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

Correct AnswerverifiedD

A firm's process strategy defines the extent of customer involvement in providing a service.

Correct AnswerverifiedTrue

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

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 break-even volume for Process B is

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

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

Correct AnswerverifiedShow Answer

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A

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D

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True

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