Q&A Hero

Q: ADB, Inc., an integrated renewable products company, applies its industrial synthetic biology platform to provide alternatives to select petroleum-sourced products used in specialty chemical and transportation fuel markets worldwide. The company recently observed a dip in their overall productivity. Provide a few suggestions to improve the productivity at ADB.

Q: What is productivity and how is it important to organizations?

Q: Which of the following is a cost control and cost reduction technique that helps managers control operations by focusing primarily on material costs? A) materials planning B) decision-tree analysis C) break-even analysis D) value analysis E) process control

Q: Which of the following would be a rational justification for selecting algebraic break-even method instead of graphic break-even method? A) Algebraic method is a quick yet accurate method of determining break-even point. B) Graphic break-even method is less accurate when there are multiple relationships. C) Unlike algebraic method, all critical elements cannot be shown in the graphic method. D) Algebraic method is better suited to analyze cumulative relationships of break-even point. E) Information such as potential profit and loss can be better studies using the algebraic method.

Q: Which of the following can be considered annual fixed costs for a publishing company? A) author royalties B) salaried labor C) sales commission D) cost of binding E) printing costs

Q: The total fixed cost of production in a manufacturing company is $50,000. The company sells its products at $15 and the variable costs associated with each unit sold is $10. Calculate the level of production at which the firm breaks even. A) 15000 units B) 10000 units C) 5000 units D) 1000 units E) 20000 units

Q: Identify the algebraic equation to determine the break-even point. A) BE = VC/(P-FC) B) BE = P/ (FC-VC) C) BE = C/R D) BE = (P-VC)/(FC-VC) E) BE = FC/(P-VC)

Q: David Lamb leads a team of engineers at Alpha technologies, a leading software company. David started his career as a program developer and is widely recognized as a subject matter expert. He is not very involved in the day-to-day management of the team and instead promotes a great deal of autonomy among team members. However, he does help out if the team comes across unanticipated problems associated with atypical tasks. This is an example of ________. A) management by exception B) the process control method C) continuous operational control D) customary process control E) management by objectives

Q: The amount of revenue that exceeds the total costs of production is called a firm's ________. A) total revenue B) profits C) marginal revenue D) marginal costs E) variable revenue

Q: Which of the following terms refers to the expenses that fluctuate with changes in the number of products produced? A) variable costs B) depreciation C) asset purchase costs D) costs of mechanism E) inflationary costs

Q: ________ is a control technique that allows only significant deviations between planned and actual performance to be brought to a manager's attention. A) Management by exception B) Disaster management C) Contingency planning D) Process control E) Management by objectives

Q: Which of the following is the best example of a control tool that could be used at all stages of operations? A) quality inspections B) value statements C) labor force planning D) capacity planning E) layout strategies

Q: Which of the following statements is true of the control tools used in organizations? A) It helps to pinpoint organizational strengths and weaknesses. B) It is generally used during the product design stage. C) Control tools are not used for day-to-day operations. D) Employee control is not possible with the use of these tools. E) These tools are used by workers more than managers.

Q: Which of the following is the best example of a shop-floor control activity? A) designing jobs B) storing inventory C) scheduling work D) purchasing materials E) controlling inventory

Q: Which of the following is an explicit objective of the inventory control activities? A) increasing the short-term solvency of the company B) ensuring continuous availability of purchased materials C) enhancing the labor force planning activity of the organization D) increasing the organization's financial leverage E) making organizational assets more productive

Q: 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? A) current ratio B) return on investment C) activity ratio D) equity ratio E) debt ratio

Q: Which of the following ratios would be most useful to obtain quantitative information on the company's inventory management processes? A) activity ratio B) profitability ratio C) liquidity ratio D) leverage ratio E) solvency ratio

Q: ________ is an operations control activity that determines the flow of materials from vendors through an operations system to customers. A) Materials handling B) Zero-based control C) Work scheduling D) Production planning E) Materials control

Q: Return on investment is an example of a(n) ________ ratio. A) operations B) profitability C) liquidity D) leverage E) activity

Q: A company uses current ratio to analyze its financial position. Which of the following information can be obtained from current ratio? A) efficiency of inventory management B) productivity of the company's assets C) information on the short-term solvency D) information on the total debt of the company E) information on financial leverage

Q: Which of the following ratios is best suited to analyze how the company finances its projects? A) inventory turnover B) debt ratio C) current ratio D) acid test ratio E) return on investment

Q: Inventory turnover is an example of a(n) ________ ratio. A) operations B) profitability C) liquidity D) activity E) leverage

Q: Which of the following techniques is best suited to analyze the financial position of an organization? A) process modeling B) work modeling C) value analysis D) functional analysis E) ratio analysis

Q: 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) ________ budget. A) variable B) zero-based C) parallel D) incremental E) dependable

Q: Which of the following is a tool commonly used as both a financial plan and a control technique? A) income statement B) balance sheet C) HR design D) product layout E) budget

Q: Which of the following is the first stage in a cost control program? A) measuring actual labor costs incurred B) making changes to reduce actual labor and material costs C) comparing planned labor and material costs to incurred costs D) measuring actual material and process costs incurred E) establishing standard or planned cost amounts

Q: Tom's company repairs machines only after they have malfunctioned. This is an example of ________. A) quality circle initiative B) maintenance control policy C) pure-breakdown policy D) total productive maintenance E) quality assurance initiative

Q: RFX International, Inc. is a manufacturer of apparels and markets its products in the United States and Canada. The company serves its market from a central manufacturing unit located in California. The company has been facing problems in efficiently managing its operations and controlling the inventory costs. Mark Arthur, the COO, recommends the installation of just-in-time inventory system to streamline the operations of the company. However, the management is skeptical about installing a totally new system. Which of the following information, if true, would support Mark's suggestion? A) The company offers online personalization and allows customers to customize the products for each order. B) The apparel industry in the United States is characterized by seasonal demand and companies have to make use of it. C) The company procures raw materials from four medium sized companies in California. D) The company procures materials from Altralex, a large scale supplier in the United States. E) A recent analysis by the operations department revealed that two percent of the raw materials the company receives from its suppliers are defective.

Q: ________ 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. A) Flexible manufacturing B) Just-in-Time control C) Mass customization D) Six Sigma production E) Total preventive maintenance

Q: ________ 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. A) Work measurement methods B) Manpower plans C) Motion-study techniques D) Work methods analysis E) Job design strategies

Q: ________ layout is a layout pattern that groups together similar types of equipment. A) Process B) Fixed position C) Group technology D) Product E) Material

Q: 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? A) product layout B) process layout C) functional layout D) fixed-position layout E) equipment layout

Q: What are the challenges faced by executives in managing the IS workforce?

Q: How does user satisfaction with an IS determine the effectiveness of the IS? How can companies effectively manage user satisfaction?

Q: Describe the six steps necessary to operate an IS properly.

Q: Define the terms technology, information technology, and information systems.

Q: What are the steps in evaluating information?

Q: Describe the information that is appropriate for making strategic planning decisions and for making operational control decisions.

Q: Identify the methods by which managers can make controlling a successful activity.

Q: Explain the ways an individual can be successful in increasing his or her personal power.

Q: Explain the importance of power to the control process. Describe the difference between positional power and personal power.

Q: Outline the steps involved in the controlling process.

Q: The International Information Security Foundation produced a document known as the ________, which included a set of best practices for IS managers. A) ISSCP B) Gannt C) GASSP D) MSDS E) Pert

Q: In response to the increasing threat of security issues to information systems, private and public organizations around the world came together in 1992 to form the ________. A) International Association for Computer Systems Security B) Information Systems Security Association C) International Information Security Foundation D) Network Security Framework Forum E) System Administration, Networking, and Security Institute

Q: Which of the following is true about managing the IS workforce? A) During the economic and technological boom of the late 1990s, executives found it very easy to hire and retain IS employees. B) Due to consumer backlash, companies are reducing the outsourcing of jobs to other countries. C) Companies outsource work to other countries primarily for quality advantages. D) Replacing IS personnel is inexpensive in today's technology-driven environment. E) Outsourcing IS work overseas creates problems such as integrating domestic and nondomestic workforces and defining global work expectations.

Q: The quality of the IS refers to ________. A) the accuracy of the information B) its cost C) the relevance of the information D) the proficiency of the users E) its ease of use

Q: Three activities that improve IS effectiveness are managing user satisfaction, managing the IS workforce, and managing ________. A) IS costs B) timelines C) IS security D) scalability E) IS profitability

Q: Irvine White's work primarily involves supervising the production in one of the factories of TM Corp, a large manufacturing and retail company. Which of the following information is most likely to be relevant for Irvine? A) trend forecasts for the industry B) exception reports of operating results of his company C) detailed reports of problems in his factory D) environmental data for the company's business E) decisions on strategic plans for his organization

Q: Which of the following information would be most appropriate for the first-line management of a large corporation? A) summary reports of operations B) environmental data and trends C) decisions on strategic plans D) detailed reports of problems E) forecasts

Q: Which of the following information would be most appropriate for the middle management of a large corporation? A) environmental data and trends B) summaries and exception reports of operating results C) summary reports of transactions D) detailed reports of problems E) forecasts

Q: Dorothy Wood's work primarily involves setting corporate objectives and making decisions that impact the control of the entire company. Which of the following information is most likely to be relevant for Dorothy? A) forecasts and exception reports of problems B) summaries and exception reports of operating results C) detailed reports of problems D) summary reports of transactions E) operating plans and policies

Q: Which of the following information would be most appropriate for the top management of a large corporation? A) summary reports of transactions B) operating plans and policies C) detailed reports of problems D) operational control procedures E) environmental data and trends

Q: Which of the following is the last step in operating an IS properly? A) transmitting data B) determining appropriate data C) using the information D) determining information needs E) gathering appropriate data

Q: Martin has determined exactly what information he needs to assess worker productivity. He has identified the data that will yield this information and has collected this data. What should Martin do now? A) transmit the information B) determine the quality of the data C) use the information to assess productivity D) summarize and analyze the data E) evaluate the cost of the data

Q: Which of the following is the first step in operating an IS properly? A) transmitting data B) determining appropriate data C) using the information D) determining information needs E) gathering appropriate data

Q: George Duncan, Marketing Manager at Conrad & Scott (C&S) Inc., is planning to make a few changes in the marketing mix of a particular brand of cereal. He is considering conducting a survey of customers to see how they would react to some of the changes. However, before he initiates this survey, he evaluates the information he expects to get from such a survey and concludes that the costs exceed the expected value of the information. Which of the following additional information, if true, would be most likely to persuade George to reevaluate the information and push ahead with the survey? A) C&S's main competitor had registered a spike in sales last year after it used a survey to tweak the price and features of their bestselling cereal. B) These changes are not likely to impact the price or features of the product in a significant manner. C) New metrics are now available for this survey that deliver more accurate information by surveying a more targeted population. D) These changes were instituted in the marketing mix of a different cereal brand of the same company and were accepted readily by customers, resulting in an increase in sales. E) This customer survey is one of the cheapest and most accurate models available in the market.

Q: Which of the following is the first step in evaluating organizational information? A) pinpointing the data to be analyzed B) evaluating the cost of data C) comparing value of information with its cost D) acquiring information E) increasing value or decrease cost of information

Q: "Paralysis by analysis" is generally caused by ________. A) information overload B) insufficient information C) lack of timely information D) inappropriate information E) data contamination

Q: As part of a process of job redesigning, the HR manager of Mars LLC conducted an informal survey of employees to assess their job satisfaction levels. However, fearing negative action, few employees gave clear, unambiguous responses to the HR manager's questions. This survey is likely to be of little use to the HR manager because it is ________. A) not relevant B) too costly C) not timely D) not in sufficient quantity E) too wide in scope

Q: Immediately after Randor Leather awarded a long-term contract for supply of raw materials, its Operations Manager gets information from a vendor about a much cheaper source of raw material. This information is likely to be of little use to the business because it is not ________. A) appropriate B) of good quality C) timely D) in sufficient quantity E) wide in scope

Q: Information ________ is the extent to which the receipt of information allows decisions to be made and action to be taken so the organization can gain some benefit from possessing the information. A) appropriateness B) quality C) timeliness D) quantity E) scope

Q: Information ________ refers to the degree to which the information represents reality. A) appropriateness B) quality C) timeliness D) quantity E) scope

Q: The CEO of Pegasus Inc. wants to know the ROI on a recent promotional drive to develop the marketing strategy for next year. The Marketing Manager sends him a detailed report on the all the personnel in his department and the salaries and bonuses paid to them over the past year. This information is likely to be useless to the Operations manager because it is not ________. A) appropriate B) timely C) voluminous D) real E) expensive

Q: ________ decisions relate to determining organizational objectives and designating the corresponding action necessary to reach them. A) Strategic planning B) Operational control C) Tactical control D) Operational planning E) Management control

Q: ________ decisions relate to obtaining and effectively and efficiently using the organizational resources necessary to reach organizational objectives. A) Strategic planning B) Operational control C) Strategic control D) Operational planning E) Management control

Q: ________ decisions relate to ensuring that specific organizational tasks are carried out effectively and efficiently. A) Strategic planning B) Operational control C) Strategic control D) Tactical control E) Management control

Q: Information required for decisions related to strategic planning should ________. A) emphasize the performance history of the organization B) be well defined and narrow C) focus largely on the external organizational environment D) be highly current E) be very detailed

Q: Information required for decisions related to strategic planning should ________. A) emphasize the future B) be well defined and narrow C) focus largely on the internal organizational environment D) be highly current E) be very detailed

Q: Information required for decisions related to operational control should ________. A) emphasize the future B) be highly accurate C) come largely from external sources D) primarily contain historical data E) provide an aggregate without going into the details

Q: Information required for decisions related to operational control should ________. A) emphasize the future B) be well defined and narrow C) come largely from external sources D) primarily contain historical data E) provide an aggregate without going into the details

Q: Information ________ is defined in terms of how relevant the information is to the decision-making situation the manager faces. A) appropriateness B) quality C) timeliness D) control E) quantity

Q: Which of the following is NOT a factor that determines the value of information? A) information timeliness B) information quality C) information cost D) information quantity E) information appropriateness

Q: Which of the following is the best example of raw data? A) the return on investment on an advertising campaign B) a projection of future product demand C) the organizational budget for the next quarter D) a forecast of market trends E) the attendance register in a factory

Q: In management terms, information refers to ________. A) a collection of facts or statistics B) the skill set of the employees carrying out a particular organizational function C) the set of conclusions derived from the analysis of data that relate to the operation of an organization D) a collection of numbers, characters, images or other outputs from devices that gather physical quantities and symbols E) raw, unorganized representations of individual facts and/or figures

Q: The process of developing information begins with gathering some type of facts or statistics, called ________. A) knowledge B) expertise C) data D) information E) wisdom

Q: How can a manager increase his personal power by developing a perception among subordinates that they are dependent on the manager? A) by adopting a wider span of control B) by downplaying their positional power C) by developing employees' sense of identification with the manager D) by demonstrating his control over organizational resources E) by espousing goals, values, and ideals commonly held by them

Q: Which of the following is a way in which a manager can develop a sense of identification with subordinates? A) by moving up the organizational hierarchy B) by enhancing his position power C) by creating a perception that subordinates are dependent on the manager D) by demonstrating his control over organizational resources E) by espousing goals, values, and ideals commonly held by his subordinates

Q: In order to increase his personal power, a manager should ________. A) try to move up the organizational hierarchy B) demonstrate a high level of expertise C) downplay his authority over organizational resources D) minimize subordinates' perception that they are dependent on him or her E) focus on enhancing his position power

Q: Which of the following is true about the steps a manager can take to increase his or her total power? A) Moving up the organizational hierarchy is the best way of enhancing personal power. B) Avoid focusing on your professional achievements. C) Making subordinates feel obligated to you will enhance your personal power. D) Avoid using bonuses and raises to link rewards to performance. E) Managers usually have substantial control over enhancing their position power.

Q: Because Jamie is the manager, her subordinates follow her instructions. This is an example of ________ power. A) personal B) position C) total D) social E) absolute