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Q:
Greco Company has prepared the following forecasts of monthly sales: July
August
September
October Sales (in Units) "u00a6"u00a6"u00a6..
4,500
5,300
4,000
3,700 Greco has decided that the number of units in its inventory at the end of each month should equal 25% of the next month's sales. The budgeted cost per unit is $30.
(1) How many units should be in July's beginning inventory?
(2) What amount should be budgeted for the cost of merchandise purchases in July?
Q:
The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.
Q:
Dado, Inc. is preparing its budget for the second quarter. The following sales data have been forecasted: April
May
June
July
August Unit sales"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6..
640
720
780
620
660 Additional information follows: Inventory on March 31: 192 Units Desired ending inventory each month: 30% of next month's sales Prepare a merchandise purchases budget for the total units to be purchased in the months of April, May, and June, as well as the total unit purchases for entire the quarter.
Q:
The critical path can be determined by use of either the "forward pass" or the "backward pass."
Q:
Every network has at least one critical path.
Q:
Slack is the amount of time an activity can be delayed without delaying the entire project.
Q:
A department store has budgeted cost of goods sold for March of $60,000 for its women's shorts. Management wants to have $12,000 of shorts in inventory at the end of the month to prepare for the summer season. Beginning inventory in March was $8,000. What dollar amount of shorts should be purchased to meet the above plans?
Q:
The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.
Q:
The shortest of all paths through the network is the critical path.
Q:
PERT, but not CPM, has the ability to consider the precedence relationships in a project.
Q:
Gantt charts give a timeline for each of a projects activities, but they do not adequately illustrate the interrelationships between the activities and the resources.
Q:
Ethical issues which can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality for cost or time savings.
Q:
Project managers have their own code of ethics, established by the Project Management Institute.
Q:
Work Breakdown Structure is a useful tool in project management because it addresses the timing of individual work elements.
Q:
One responsibility of a project manager is to make sure that the project meets its quality goals.
Q:
By their very nature, projects have a limited lifetime, and that sets project management apart from the management of more traditional activities.
Q:
A project organization works best for an organization when the project resides in only one of its functional areas.
Q:
One phase of a large project is scheduling.
Q:
The ES of an activity that has only one predecessor is simply the EF of that predecessor.
Q:
For what type of organization might the location decision area be the least important of its ten decision areas? For what type of organization might the location decision be the most important of the ten decision areas? Discuss; augment your response with examples.
Q:
Define core competencies.
Q:
How has Franz Colruyt achieved low-cost leadership? List three specific examples and describe each briefly.
Q:
I; 2. C; 3. G; 4. A; 5. D; 6. B; 7. H; 8. E; 9. F; 10. J
Short Answer Questions
Q:
What is the difference between goods and services in terms of their location selection?
Q:
How do goods and services differ with regard to handling the quality decision?
Q:
With regard to the scheduling decision, how are goods-producing organizations different from service companies? Discuss.
Q:
I; 2. F; 3. G; 4. E; 5. D; 6. A; 7. C; 8. B; 9. H
Q:
Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain.
Q:
Since the early 1990s, residents in a number of developing countries have overcome culture, religious, ethnic, and political productivity barriers. These disappearing barriers coupled with simultaneous advances in technology, reliable shipping, and cheap communication have all led to the growth of what three things?
Q:
Grason Corporation is preparing a budgeted balance sheet for 2015. The retained earnings balance at December 31, 2014 was $533,500. The 2015 budgeted income statement shows expected net income of $112,000. The company expects to declare dividends during 2015 amounting to $40,000. The expected balance in retained earnings on the 2015 budgeted balance sheet is:
A.$533,500.
B.$605,500.
C.$645,500
D.$493,500.
E.$685,500.
Q:
What is the difference between a firm's mission and its strategy?
Q:
Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sales for the year are $730,000 and cost of goods sold is 40% of sales. The expected selling expenses are $81,000 and the expected general and administrative expenses are $90,000, which includes $23,000 of depreciation. The companies income tax rate is 30%. The budgeted net income for 2015 is:
A.$438,000.
B.$186,900.
C.$267,000
D.$84,700.
E.$80,100.
Q:
State two examples of cultural and ethical issues that face operations managers in a global environment.
Q:
On its December 31, 2014, balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2015, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2015 budgeted balance sheet are:
A.$328,000; $74,000.
B.$450,000; $98,400.
C.$450,000; $104,000
D.$408,000; $104,000.
E.$408,000; $98,400.
Q:
How do global operations attract new markets?
Q:
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor for the month of August is:
A.$82,950.
B.$4,050.
C.$85,050.
D.$3,950.
E.$168,000.
Q:
How can global operations improve the supply chain?
Q:
Identify five parts which Boeing's 787 Dreamliner gets from global suppliers; match each part with the country that supplies it.
Q:
Identify five countries from which Boeing's 787 Dreamliner has suppliers.
Q:
Flagstaff Company has budgeted production units for July of 7,900 units. Variable factory overhead is $1.20 per unit. Budgeted fixed factory overhead is $19,000, which includes $3,000 of factory equipment depreciation. Compute the total budgeted overhead to be reported on the factory overhead budget for the month.
A.$25,480.
B.$19,000.
C.$23,900.
D.$28,480.
E.$9,480.
Q:
The __________ strategy describes a condition in which material, people, and ideas cross or transgress national boundaries.
Q:
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $36,400. Cash receipts are expected to be $641,000 and cash payments for purchases are expected to be $608,500. Other cash expenses expected are $27,000 selling and $33,500 general and administrative. The company desires a minimum cash balance at the end of each month of $30,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. Webster's preliminary cash balance before loan activity for April is expected to be:
A.$8,400.
B.$21,600.
C.$30,000.
D.($28,000).
E.$68,900.
Q:
The __________ strategy uses subsidiaries, franchises, or joint ventures with substantial independence.
Q:
Webster Corporation's monthly projected general and administrative expenses include $5,000 administrative salaries, $2,400 of other cash administrative expenses, $1,350 of depreciation expense, and 0.5% monthly interest on an outstanding bank loan of $10,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.
A.$17,400.
B.$7,400.
C.$7,450.
D.$5,050.
E.$8,800.
Q:
The __________ strategy uses exports and licenses to penetrate globally.
Q:
Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 2,680 units in January, 2,600 units in February and 2,740 units in March. Each unit requires 0.6 hours of direct labor. The direct labor rate is $12 per hour. Compute the budgeted direct labor cost for the first quarter budget.
A.$56,160.
B.$57,744.
C.$96,240.
D.$93,600.
E.$48,120.
Q:
The __________ strategy utilizes a standardized product across countries.
Q:
Webster Corporation's budgeted sales for February are $325,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $4,400 and expects advertising expense of $2,000 per month. Compute the total selling expenses to be reported on the selling expense budget for the month of February.
A.$19,500.
B.$6,400.
C.$23,900.
D.$25,900.
E.$21,500.
Q:
A(n) __________ is a firm that has extensive involvement in international business, owning or controlling facilities in more than one country.
Q:
Zhang Industries is preparing a cash budget for June. The company has $25,000 cash at the beginning of June and anticipates $95,000 in cash receipts and $111,290 in cash disbursements during June. The company has no loans outstanding on June 1. Compute the amount the company must borrow, if any, to maintain a $20,000 cash balance.
A.$28,710.
B.$12,290.
C.$16,290.
D.$11,290
E.$6,290.
Q:
Competitive advantage in operations can be achieved by __________, __________, and/or __________.
Q:
Zhang Industries budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate if $14 per hour. The indirect labor rate is $21.00 per hour. Compute the budgeted direct labor cost for July.
A.$6,300.
B.$6,510.
C.$9,450.
D.$9,765.
E.$16,275.
Q:
Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice __________.
Q:
The creation of a unique advantage over competitors is called a __________.
Q:
Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars. Assume 30% of Zhang's sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June.
A.$282,520.
B.$196,000.
C.$201,880.
D.$280,000.
E.$285,880.
Q:
The __________ is how an organization expects to achieve its missions and goals.
Q:
__________ is the stage in product life cycle at which it is a poor time to change quality.
Q:
Strategy is not static, but dynamic because of changes in the __________ and __________.
Q:
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Trago assigns variable overhead at a rate of $1.80 per unit of production. Fixed overhead equals $400,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for month of June.
A.$920,200.
B.$904,900.
C.$930,100.
D.$922,000.
E.$878,800
Q:
In goods-producing organizations, __________,__________, and __________ may be inventoried.
Q:
An organization that has worked to achieve global uniformity in cultural and ethical issues such as bribery, child labor, and environmental regulations is __________.
Q:
__________ and __________ are two issues where significant cultural differences are large and progress toward global uniformity has been slow.
Q:
__________ is a free trade agreement among Canada, Mexico, and the United States.
Q:
Ratchet Manufacturing anticipates total sales for August, September, and October of $200,000, $210,000, and $220,500 respectively. Cash sales are normally 25% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale. Compute the amount of accounts receivable to be reported on the company's budgeted balance sheet for August.
A.$150,000.
B.$50,000.
C.$157,500.
D.$52,500.
E.$200,000.
Q:
__________ are areas located along the U.S.-Mexico border in which factories receive preferential
tariff treatment.
Q:
Boeing found its Dreamliner 787 partners in __________ countries.
Q:
Ratchet Manufacturing's August sales budget calls for sales of 8,000 units. Each month's sales are expected to exceed the prior month's results by 5%. The product selling price is $25 per unit. The expected total sales dollars for September's sales budget are:
A.$200,000.
B.$190,000.
C.$210,000.
D.$220,000.
E.$8,400.
Q:
Which of the following are examples of transnational firms?
A) Nestl
B) Asea Brown Boveri
C) Reuters
D) Citicorp
E) All of the above are transnationals.
Q:
Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are collected in the second month. Compute the amount of accounts receivable reported on the company's budgeted balance sheet for June 30.
A.$561,500.
B.$712,500.
C.$463,125.
D.$496,875.
E.$617,500.
Q:
Caterpillar and Texas Instruments are two firms that have benefited from the use of
A) the multidomestic strategy option.
B) the multinational corporation strategy.
C) the transnational strategy option.
D) the maquiladora system in Europe.
E) the global strategy option.
Q:
The acronym MNC stands for
A) Mexican National Committee (for international trade)
B) Maquiladora Negates Competition
C) Maytag-Nestl Corporation
D) Multinational Corporation
E) none of the above
Q:
Which of the international operations strategies uses the existing domestic model globally?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) none of the above
Q:
Which of the international operations strategies uses import/export or licensing of existing products?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) none of the above
Q:
Which of the international operations strategies involves low cost reductions and low local responsiveness?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) none of the above
Q:
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January
February
March Material purchases "u00a6"u00a6"u00a6..
$12,040
14,150
10,970 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 30 Accounts Payable balance is:
A. $6,500.
B. $7,075.
C. $12,040.
D. $6,020
E. $9,270.
Q:
Memphis Company's May sales budget calls for sales of $900,000. The store expects to begin May with $50,000 of inventory and to end the month with $55,000 of inventory. Gross margin is typically 45% of sales. Compute the budgeted cost of merchandise purchases for May.
A.$550,000.
B.$500,000.
C.$495,000.
D.$460,000.
E.$490,000.
Q:
Which of the international operations strategies involves high cost reductions and high local responsiveness?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) none of the above
Q:
When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it
A) requires minimal capital investment
B) utilizes as much automation as possible
C) utilizes an equal balance of labor and automation
D) supports the overall competitive strategy of the company
E) none of the above
Q:
The three steps of the operations manager's job, in order, are:
A) develop the strategy, establish the organizational structure, find the right staff
B) develop the strategy, find the right staff, establish the organizational structure
C) find the right staff, establish the organizational structure, develop the strategy
D) find the right staff, develop the strategy, establish the organizational structure
E) establish the organizational structure, find the right staff, develop the strategy
Q:
Charm Enterprises' production budget shows the following units to be produced for the coming three months: April
May
June Units to be produced "u00a6"u00a6"u00a6..
2,560
2,880
2,760 A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month's ending Raw Materials inventory should be 35% of the following month's production needs. The materials to be purchased during May should be:
A. 11,352 oz.
B. 11,520 oz.
C. 7,448 oz.
D. 15,384 oz.
E. 7,616 oz.