Question 1

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.

Accepted Answer

A)  one at a time; consumed more than one at a time 
B)  immediately; stored 
C)  intangibly; tangible or intangible 
D)  later; consumed now 
E)  as they are produced; special ordered 
A)  one at a time; consumed more than one at a time 
B)  immediately; stored 
C)  intangibly; tangible or intangible 
D)  later; consumed now 
E)  as they are produced; special ordered

Question 2

Today approximately ____ percent of American workers are employed in service industries.

Accepted Answer

A)  28 
B)  47 
C)  62 
D)  87 
E)  94 
A)  28 
B)  47 
C)  62 
D)  87 
E)  94

Question 3

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
-Refer to Jasper Electronics, Inc. Which of the following objectives would you advise Ross to focus on?

Accepted Answer

A)  Increasing the use of technology 
B)  Increasing production costs to gain competitive position 
C)  Improving the inspection process 
D)  Eliminating expenses by reducing control procedures 
E)  Obtaining new equipment to minimize technological expenses 
A)  Increasing the use of technology 
B)  Increasing production costs to gain competitive position 
C)  Improving the inspection process 
D)  Eliminating expenses by reducing control procedures 
E)  Obtaining new equipment to minimize technological expenses

Question 4

Which of the following is the objective of purchasing?

Accepted Answer

A)  Routinely replenish the stock. 
B)  Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost. 
C)  Select suppliers. 
D)  Determine the facility's level of output. 
E)  Control inventory and product quality. 
A)  Routinely replenish the stock. 
B)  Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost. 
C)  Select suppliers. 
D)  Determine the facility's level of output. 
E)  Control inventory and product quality.

Question 5

In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.

Accepted Answer

A)  focus 
B)  magnitude 
C)  width of processes 
D)  utility 
E)  result 
A)  focus 
B)  magnitude 
C)  width of processes 
D)  utility 
E)  result

Question 6

Which of the following is not a possible cause of only a small increase in America's recent productivity growth rate?

Accepted Answer

A)  The economic crisis in banking and finance 
B)  A downturn in home construction and automobile industries 
C)  Increased investment in new equipment 
D)  Increased government regulation 
E)  The tremendous growth in the service industry 
A)  The economic crisis in banking and finance 
B)  A downturn in home construction and automobile industries 
C)  Increased investment in new equipment 
D)  Increased government regulation 
E)  The tremendous growth in the service industry

Question 7

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
-Refer to Jasper Electronics, Inc. As an operations manager, Ross must do all of the following to be successful except

Accepted Answer

A)  motivate and lead people. 
B)  understand how technology can make a manufacturer more productive and efficient. 
C)  appreciate the control processes that help lower production costs and improve product quality. 
D)  understand the relationship among the customer, the marketing of a product, and the production of a product. 
E)  understand how to successfully finance production to gain the larger market share. 
A)  motivate and lead people. 
B)  understand how technology can make a manufacturer more productive and efficient. 
C)  appreciate the control processes that help lower production costs and improve product quality. 
D)  understand the relationship among the customer, the marketing of a product, and the production of a product. 
E)  understand how to successfully finance production to gain the larger market share.

Question 8

An engine production facility uses a system that involves the entire organization and utilizes a single set of facts used by all of the managers within the facility. The system is an example of

Accepted Answer

A)  a just-in-time inventory system. 
B)  materials requirement planning. 
C)  manufacturing resource planning. 
D)  enterprise resource planning. 
E)  an inventory control system. 
A)  a just-in-time inventory system. 
B)  materials requirement planning. 
C)  manufacturing resource planning. 
D)  enterprise resource planning. 
E)  an inventory control system.

Question 9

When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: what the computer would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of

Accepted Answer

A)  operational planning. 
B)  basic research. 
C)  applied research. 
D)  design planning. 
E)  scheduling. 
A)  operational planning. 
B)  basic research. 
C)  applied research. 
D)  design planning. 
E)  scheduling.

Question 10

What are the two types of costs associated with inventory?

Accepted Answer

A)  Holding costs and selling costs 
B)  Stock-out costs and holding costs 
C)  Shipping and handling costs and holding costs 
D)  Overstock costs and stock-out costs 
E)  Holding costs and tracking costs 
A)  Holding costs and selling costs 
B)  Stock-out costs and holding costs 
C)  Shipping and handling costs and holding costs 
D)  Overstock costs and stock-out costs 
E)  Holding costs and tracking costs

Question 11

Research activities undertaken to put new or existing knowledge to use in producing goods and services are called

Accepted Answer

A)  development and implementation. 
B)  applied research. 
C)  basic research. 
D)  design planning. 
E)  product design. 
A)  development and implementation. 
B)  applied research. 
C)  basic research. 
D)  design planning. 
E)  product design.

Question 12

When demand exceeds capacity, all of the following are reasonable options for the firm except

Accepted Answer

A)  operating overtime hours to meet the demand. 
B)  starting a second or third shift. 
C)  subcontracting part of the work to other producers. 
D)  turning away some long-time customers. 
E)  expanding the capacity of the current facility. 
A)  operating overtime hours to meet the demand. 
B)  starting a second or third shift. 
C)  subcontracting part of the work to other producers. 
D)  turning away some long-time customers. 
E)  expanding the capacity of the current facility.

Question 13

Productivity is the

Accepted Answer

A)  highest level of output for the best worker. 
B)  average level of output per worker. 
C)  lowest level of output for all hourly workers. 
D)  average level of output for workers with at least five years of experience. 
E)  average level of output for a randomly selected group of employees. 
A)  highest level of output for the best worker. 
B)  average level of output per worker. 
C)  lowest level of output for all hourly workers. 
D)  average level of output for workers with at least five years of experience. 
E)  average level of output for a randomly selected group of employees.

Question 14

Operations control includes all of the following except

Accepted Answer

A)  scheduling. 
B)  inventory control. 
C)  basic research. 
D)  purchasing. 
E)  quality control. 
A)  scheduling. 
B)  inventory control. 
C)  basic research. 
D)  purchasing. 
E)  quality control.

Question 15

Statistical quality control (SQC) is concerned with only the quality of a firm's finished products.

Accepted Answer

A) True 
 B)False

Question 16

The cost of running out of inventory is referred to as a holding cost.

Accepted Answer

A) True 
 B)False

Question 17

Gantt charts force a manager to plan the steps required to get a job done and to specify time requirements for each part of the task.

Accepted Answer

A) True 
 B)False

Question 18

After World War II, the United States became the most productive country in the world.

Accepted Answer

A) True 
 B)False

Question 19

The period of time over which an operational plan will be in effect is known as a

Accepted Answer

A)  planning horizon. 
B)  fiscal period. 
C)  quality circle. 
D)  process layout. 
E)  research period. 
A)  planning horizon. 
B)  fiscal period. 
C)  quality circle. 
D)  process layout. 
E)  research period.

Question 20

Robots are especially effective in carrying out creative tasks and assignments.

Accepted Answer

A) True 
 B)False

Exam 8: Producing Quality Goods and Services

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.

Today approximately ____ percent of American workers are employed in service industries.

Which of the following is the objective of purchasing?

In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.

Which of the following is not a possible cause of only a small increase in America's recent productivity growth rate?

An engine production facility uses a system that involves the entire organization and utilizes a single set of facts used by all of the managers within the facility. The system is an example of

When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: what the computer would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of

What are the two types of costs associated with inventory?

Research activities undertaken to put new or existing knowledge to use in producing goods and services are called

When demand exceeds capacity, all of the following are reasonable options for the firm except

Productivity is the

Operations control includes all of the following except

Statistical quality control (SQC) is concerned with only the quality of a firm's finished products.

The cost of running out of inventory is referred to as a holding cost.

Gantt charts force a manager to plan the steps required to get a job done and to specify time requirements for each part of the task.

After World War II, the United States became the most productive country in the world.

The period of time over which an operational plan will be in effect is known as a

Robots are especially effective in carrying out creative tasks and assignments.

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

Filters

One primary difference between services and the production of goods is that services are consumed whereas goods can be .