Q&A Hero

Q: Self-directed teams tend to be successful in work environments where there is little employee empowerment.

Q: Charlie's Chocolates Inc.'s stockholders made investments of $50,000 and dividends of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income. A.$30,000. B.$83,000. C.$64,000. D.$19,000. E.$49,000.

Q: Psychological factors have little relevance in the design of assembly line jobs since they involve physical products and production technology.

Q: Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash. A.$61,000 increase. B.$37,000 increase. C.$7,000 decrease. D.$7,000 increase. E.$34,000 decrease.

Q: Fredrick W. Taylor is credited with introducing psychology into the workplace.

Q: Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets. A.7.1% B.7.5% C.6.7% D.20.0% E.18.8%

Q: Job rotation is an example of job enlargement.

Q: Flitter reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets: A.8.8% B.7.0% C.5.8% D.35.0% E.23.3%

Q: An enlarged job has more responsibility than the same job enriched.

Q: Labor specialization includes the development of specialized tools to reduce labor costs.

Q: Flextime is a system that allows employees, within limits, to determine their own work schedules.

Q: Maintaining a stable workforce generally results in the firm paying higher wages than a firm that follows demand.

Q: Rent expense appears on which of the following statements? A.Balance sheet. B.Income statement. C.Statement of retained earnings. D.Statement of periodic expenses. E.Statement of cash flows only.

Q: The two extremes of employment stability policy are "follow demand exactly" and "keep demand constant."

Q: Cragmont has beginning equity of $277,000, net income of $63,000, dividends of $25,000 and no additional investments by stockholders during the period. Its ending equity is: A.$365,000. B.$239,000. C.$189,000. D. $315,000. E.$277,000.

Q: Labor planning determines employment stability.

Q: Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is: A.$223,000. B.$240,000. C.$268,000. D. $274,000. E.$208,000.

Q: Technology, location, and layout decisions are all possible constraints on the human resource strategy.

Q: Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: A.$38,500 increase. B.$38,500 decrease. C.$132,500 decrease. D.$132,000 increase. E.$11,500 decrease.

Q: Mutual trust means that both management and employee strive to meet common objectives.

Q: A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n): A.Revenue activity. B.Operating activity. C.Expense activity. D.Investing activity. E.Financing activity.

Q: Equitable pay alone cannot achieve a reasonable quality of work life in an organization.

Q: A company acquires equipment for $75,000 cash. This represents a(n):A.Operating activity.B.Investing activity.C.Financing activity.D.Revenue activity.E.Expense activity.

Q: The goal of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized.

Q: Self-directed teams may mean having no supervision on the factory floor.

Q: Operations Management, 10e (Heizer/Render) True/False

Q: Use the following information for Meeker Corp to determine the amount of equity to report. Cash"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 70,000 Buildings........................ 125,000 Land"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. 205,000 Liabilities"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 $130,000 A.$390,000. B.$140,000. C.$20,000. D.$530,000. E.$270,000.

Q: Suppose that an analyst takes 50 samples of size 100. The process mean is 100 is standard deviation 3. If the max error can be no more than 1 minute how confident can the analyst be in the results?

Q: Use the following information as of December 31 to determine equity. Cash"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 57,000 Buildings........................ 175,000 Equipment"u00a6"u00a6"u00a6"u00a6"u00a6.. 206,000 Liabilities"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 $141,000 A.$57,000. B.$141,000. C.$297,000. D.$438,000. E.$579,000.

Q: What is the required sample size to be 95% confident that the observed average time is within 2% of the actual value if the process has a standard deviation of 1 minute and mean of 50 minutes?

Q: A manufacturing plant assembly line job has a standard time of 5 minutes. A worker with a performance rating of 87% is assigned the task and given an allowance factor of 13%. What is the worker's average observed time?

Q: A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive program will pay $1 per unit produced above standard rates. A worker is timed at 280 seconds per unit, with a performance rating of 105%. The plant has an allowance factor of 13%. If he produces 100 units in an 8 hour shift, how much would he receive under the incentive plan?

Q: Cash investments by stockholders are listed on which of the following statements?A.Balance sheet.B.Income statement.C.Statement of retained earnings. .D.Statement of cash flows.

Q: A grocery store is trying to determine how many checkouts per hour its cashiers should perform. The checkout consists of three components; checking, bagging, and payment. A cashier was rated as 80%, 120%, and 95% on the three different components respectively. If a stopwatch timed her as averaging 20 seconds for each component and the store wants a 10% allowance calculate the total standard time.

Q: The financial statement that shows the beginning balance of retained earnings; the changes in retained earnings that resulted from , net income (or net loss); dividends; and the ending balance, is the: A.Statement of financial position. B.Statement of cash flows. C.Balance sheet. D.Income statement. E.Statement of retained earnings.

Q: An initial analysis of a laboratory activity resulted in the first table below. After this analysis, the managers determined that their element descriptions were not as accurate as they should have beenthey had left out an element, underestimated a distance, and understated the need for accuracy. They revised the table of element data, which appears in the second table. Original Activity: Pouring tube specimen Element description Element code TMU Get tube from rack AA2 35 Get stopper, place on counter AA2 35 Get centrifuge, place at sample tube AD2 45 Pour (3 sec.) PT 83 Place tubes in rack (simo) PC2 40 TOTAL TMU Revised Activity: Pouring tube specimen Element description Element code TMU Get tube from rack AC3 70 Get stopper, place on counter AA2 35 Get centrifuge, place at sample tube AD2 45 Pour (3 sec.) PT 83 Get stopper, place on tube AC1 40 Place tubes in rack (simo) PC2 40 TOTAL TMU Calculate the total standard minutes for the original activity "pouring tube specimen." Calculate the total standard minutes for the revised activity "pouring tube specimen." What is the increase, in seconds, from the first version to the second?

Q: The financial statement that identifies a company's cash receipts and cash payments over a period of time is the: A.Statement of financial position. B.Statement of cash flows. C.Balance sheet. D.Income statement. E.Statement of changes in stockholders' equity.

Q: An operation in a television factory has an average observed time of 6 minutes. The performance rating of the worker timed was estimated at 90%. Practice in this department is to allow 8% for the constant allowances. Currently, there is no variable allowance. a. Find the normal time for the operation. b. Compute the standard time for the operation. c. Recompute the standard time if a variable allowance of 8% is factored in.

Q: The data in the following table represent time-study observations on a new operation with three work elements. On the basis of these observations, find the standard time for the process. Assume a 15% allowance factor. Observations (times in seconds) Element Performance Rating 1 2 3 4 1 120% 90.3 91.5 92.4 90.2 2 100% 30.5 32.3 29.6 31.1 3 105% 130.5 128.9 132 130.5

Q: A task involves positioning two metal parts with a rubber gasket sandwiched between them, inserting two bolts into predrilled holes, threading a nut onto each bolt, and tightening each bolt with a pneumatic wrench. In a preliminary study, the manager observed one of his workers perform this task five times. The observations were made in an air-conditioned, well-lighted training facility, at ground level, with all tools and equipment clean and readily available. Observation: 1 2 3 4 5 Task time (seconds): 50 54 60 145 56 a. What is the average observed time for this task? b. What is the normal time for this task if the employee worked at a 10% slower pace than is typical for adequately trained workers? c. What is standard time for this task if allowances are 8% constant and 6% variable?

Q: A Methods and Measurements Analyst needs to develop a time standard for a certain task. The task involves use of ruler, square, and portable electric saw to mark and cut the "notch" in a rafter (a standard carpentry task of home construction). In a preliminary study, he observed one of his workers perform this task five times. The observations were made in an air-conditioned, well-lighted training facility, at ground level, with all tools and equipment clean and readily available. Observation: 1 2 3 4 5 Task time (seconds): 82 74 80 83 76 a. What is the actual average time for this task? b. What is the normal time for this task if the employee worked at a 20% faster pace than is typical for adequately trained workers? c. What is standard time for this task if allowances are 8% constant and 6% variable? d. If the analyst then thought more carefully about his experiment, and decided that the variable allowances needed to be increased to match the real (outside, unair-conditioned) work environment, and that the proper variable allowance was not 6% but 12%, what is the revised standard time?

Q: The data in the following table represent time-study observations on a new operation with three work elements. On the basis of these observations, find the standard time for the process. Assume an 8% allowance factor. Observations (times in seconds) Element Performance Rating 1 2 3 4 1 105% 110.2 110.8 112.3 108.7 2 90% 114.7 115.7 114.8 114.2 3 115% 109.2 109.3 109.2 108.9

Q: The statement of retained earnings: A.Reports how retained earnings changes at a point in time. B.Reports how retained earnings changes over a period of time. C.Reports on cash flows for operating, financing, and investing activities over a period of time. D.Reports on cash flows for operating, financing, and investing activities at a point in time. E.Reports on amounts for assets, liabilities, and equity at a point in time.

Q: A brake system installer in an auto factory has an actual average time of 10 minutes on her task. The performance rating of the worker timed was estimated at 110%. Practice in this department is to allow 9% for the constant allowances. There is currently no variable allowance. a. Find the normal time for the operation. b. Compute the standard time for the operation. c. Recompute the standard time if a variable allowance of 7% is factored in.

Q: The basic financial statements include all of the following except: A.Balance Sheet. B.Income Statement. C.Statement of Retained Earnings. D.Statement of Cash Flows. E.Statement of Changes in Assets.

Q: In a preliminary work sample of an operation, out of 50 observations the operator was observed idle in 5 observations. What sample size is required for a work sampling study if the desired confidence level is 98% and the desired accuracy level is 5%?

Q: The statement of cash flows reports all of the following except: A.Cash flows from operating activities. B.Cash flows from investing activities. C.Cash flows from financing activities. D.The net increase or decrease in assets for the period reported. E.The net increase or decrease in cash for the period reported.

Q: A work sampling study requires an acceptable error level of 10 percent and 95 percent confidence. a. What is the adequate sample size if the sample proportion is as large as 50 percent? b. What is the adequate sample size if the sample proportion is estimated to be about 20 percent?

Q: How many observations would be necessary for a time studies analyst to be 99% confident that the average time is within .1 minutes of the true value if the average time is 10.5 minutes and the standard deviation is 3 minutes?

Q: A time study of a certain service task found an average time of 15 minutes, with a standard sample large enough that we are 95% confident that standard time is within 5% of its true value?

Q: Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets. A.8.4% B.17.2% C.14.3% D.15.6% E.1.5%

Q: What are the disadvantages of work sampling?

Q: Speedy has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets. A.7.7%. B.8.5%. C.9.5%. D.11.8%. E.13.0%.

Q: What are the advantages of work sampling over time-study methods?

Q: Cage Company had income of $350 million and average invested assets of $2,000 million. Its return on assets (ROA) is: A.1.8%. B.35%. C.17.5%. D.5.7%. E.3.5%.

Q: What kind of work circumstances call for the use of work sampling instead of stopwatch study?

Q: Rushing had income of $150 million and average invested assets of $1,800 million. Its return on assets is: A.8.3%. B.83.3%. C.12%. D.120%. E.16.7%.

Q: List the steps in the work-sampling procedure.

Q: What are predetermined time standards?

Q: How is the statistical tool of adequate sample sizing used in work measurement?

Q: What is a "normal" pace, and what is its connection to normal time and labor standards?

Q: What three broad categories do allowances fall into? Discuss why "allowances" are included to adjust normal time to standard time. Support your position with a few simple examples.

Q: How do we establish a fair day's work?

Q: Define standard time.

Q: Contessa Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are: A.Total assets decrease and equity increases. B.Both total assets and total liabilities decrease. C.Neither assets, total liabilities, nor equity are changed. D.Both total assets and equity are unchanged and liabilities increase. E.Total assets increase and equity decreases.

Q: Define the average observed time.

Q: Alpha Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? A.Assets increase by $75,000 and expenses increase by $75,000. B.Assets increase by $75,000 and expenses decrease by $75,000. C.Liabilities increase by $75,000 and expenses decrease by $75,000. D.Assets decrease by $75,000 and expenses decrease by $75,000. E.Assets increase by $75,000 and liabilities increase by $75,000.

Q: If historical experience data are so widely available and so easy to obtain, why aren't they more widely used to set labor standards?

Q: If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and: A.Accounts payable decreases $10,000. B.Accounts payable increases $10,000. C.Cash increases $10,000. D.Revenue increases $10,000. E.Revenue decreases $10,000

Q: List the eight steps used to develop a time study-based labor standard.

Q: Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? A.Assets, $30,000 increase; equity, $30,000 increase. B.Assets, $30,000 decrease; liabilities, $30,000 decrease. C.Assets, $30,000 decrease; liabilities, $30,000 increase. D.Liabilities, $30,000 decrease; equity, $30,000 increase. E.Assets, $30,000 decrease; equity $30,000 decrease.

Q: Explain in broad terms, not fine detail, using a sentence or two, what is meant by a "classical stopwatch study."

Q: An exchange of value between two entities that yields a change in the accounting equation is called: A.The accounting equation. B.Recordkeeping or bookkeeping. C.An external transaction. D.An asset. E.Net Income.

Q: What is meant by the visual workplace? Provide two examples.

Q: Describe how the "visual workplace" can increase information flow, improve efficiency, and eliminate non-value-adding activities. Support your argument with a few examples.

Q: On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of stockholders' equity as of August 31 of the current year? A.$49,100 B.$32,100 C.$12,100 D.$10,900 E.$30,900

Q: How might ergonomics be used to help design an employee workstation?

Q: On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders' equity as of May 31 of the current year? A.$8,300 B.$13,050 C.$20,500 D.$31,100 E.$40,400

Q: What are operations charts used for?

Q: What is methods analysis?