Q&A Hero

Q: Which of these organizations is likely to have the most complex inventory decisions? A) a marketing research firm B) a stock brokerage firm C) a management consulting firm D) a computer manufacturing company E) a high school

Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units "u00a6"u00a6"u00a6.. 240 280 300 240 Each month's ending Finished Goods inventory should be 40% of the next month's sales March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B. The March 31 Raw Materials inventory has 200 pounds of B. Each month's ending Raw Materials inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be: A. 1,422 lbs. B. 288 lbs. C. 1,854 lbs. D. 276 lbs. E. 1,008 lbs.

Q: Given the position of the iPod in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of iPods be least concerned with at the current time? A) forecasting B) cost cutting C) increasing capacity D) product and process reliability E) enhancing distribution

Q: Which of the following statements is most correct? A) KSFs are often necessary, but not sufficient for competitive advantage. B) KSFs are often sufficient, but not necessary for competitive advantage. C) KSFs are neither necessary nor sufficient for competitive advantage. D) KSFs are both necessary and sufficient for competitive advantage. E) None of the above statements is correct.

Q: A plan that states the number of units to be produced in a future period, based on the projected unit sales and inventory considerations, is the: A.Sales budget. B.Merchandise purchases budget. C.Production budget. D.Cash budget. E.Manufacturing budget.

Q: Which of the following is least likely to result in a strategy change? A) change in the company's financial situation B) a company's adoption of new technology C) change in the product life cycle D) change in the competitive environment E) change in job scheduling techniques

Q: Which of the following budgets is not a budget that a manufacturer would include in its master budget? A.Sales budget. B.Direct materials budget. C.Production budget. D.Merchandise purchases budget. E.Cash budget.

Q: Which of the following OM Strategy/Issues should a firm with a product in the maturity stage of its life cycle be least concerned with at the present time? A) increase capacity B) long production runs C) standardization D) cost cutting E) fewer rapid product changes

Q: Cost minimization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) adolescence D) decline E) retirement

Q: Which of the following must be prepared before the direct labor budget? A.Budgeted income statement. B.Merchandise purchases budget. C.Capital expenditures budget. D.Selling expense budget. E.Production budget.

Q: Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement

Q: Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales. Assume that total sales for January and February are budgeted to be $50,000 and $100,000, respectively. What are the expected cash receipts for February from current and past sales? A.$80,500. B.$71,500. C.$34,500. D.$61,500. E.$59,500.

Q: Which of the following environmental factors has not been a factor in Microsoft's changing strategy? A) Google B) security issues C) faster processors D) the Internet E) none of the above

Q: Which of the following is not part of value-chain analysis? A) product research B) quality management C) supply-chain management D) marketing E) human resources

Q: Wichita Industries' sales are 10% cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales. Assume that total sales for January are budgeted to be $50,000. What are the expected cash receipts for January from the current and past sales? A.$18,500. B.$51,500. C.$51,900. D.$55,500. E.$60,500.

Q: Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas? A) product research B) human resources C) process innovation D) quality management E) all of the above

Q: The Gardner Company expects sales for October of $248,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,000. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet? A.$111,600. B.$124,000. C.$67,000. D.$68,200. E.$136,400.

Q: Value-chain analysis is used to identify activities that represent, or can develop into, the core competencies of a business. Who introduced this concept? A) Ford B) Toyota C) Porter D) Smith E) None of the above

Q: Porter's Five Forces Model contains which of the following? A) immediate rivals B) potential entrants C) customers D) suppliers E) all of the Above

Q: The Ballentine Company expects sales for June, July, and August of $48,000, $54,000, and $44,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales? A.$29,160. B.$46,760. C.$61,160. D.$66,200. E.$78,800.

Q: Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? A) research and development, cost, legal regulations, suppliers, customers B) immediate rivals, potential entrants, customers, suppliers, and substitute products C) potential entrants, customers, suppliers, legal regulations, and cost D) immediate rivals, potential entrants, cost, substitute products, and legal regulations E) none of the above

Q: Walter Enterprises expects its September sales to be 20% higher than its August sales of $150,000. Purchases were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending cash balance on September 30 would be: A.$31,500. B.$67,500. C.$54,000. D.$61,500. E.$136,500.

Q: Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available: A) financial B) physical C) human D) technological E) all of the above

Q: Which of these organizations is likely to have the most important inventory decisions? A) a marketing research firm B) a lobbying agency C) a management consulting firm D) an aluminum manufacturer E) a law firm

Q: Which of the following statements concerning the operations management decision is relevant to services? A) There are many objective quality standards. B) The customer is not involved in most of the process. C) The work force's technical skills are very important. D) Labor standards vary depending on customer requirements. E) Ability to inventory may allow the leveling of the output rates.

Q: Which of the following will more likely locate near their customers? A) an automobile manufacturer B) an aluminum manufacturer C) an insurance company headquarters D) a medical clinic E) All of the above will tend to locate near their customers.

Q: Which of these companies is most apt to have quality standards that are relatively subjective? A) Chrysler B) Dell Computer C) Sanyo Electronics D) HarvardUniversity E) Whirlpool

Q: Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other? A) layout design B) goods and service design C) supply-chain management D) inventory E) scheduling

Q: In preparing a budgeted balance sheet, the amount for Accounts Receivable data can be derived from: A.The purchases budget and schedule of cash payments. B.The sales budget and the schedule of cash receipts. C.The capital expenditures budget and purchases budget. D.The budgeted income statement and budgeted balance sheet. E.The selling expenses budget and the schedule of cash receipts.

Q: Funcycle Manufacturing's budget includes the following credit sales for the current year: September, $145,000; October, $136,000; November, $120,000; December, $157,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 50% in the first month after sale, and 35% in the second month after sale. What are the cash collections of credit sales in the month of December? A.$23,550. B.$107,600. C.$83,550. D.$157,000. E.$131,150.

Q: Which of the following is not an operations strategic decision? A) maintenance B) price C) layout design D) quality E) inventory

Q: Justin Company's budget includes the following credit sales for the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales? A.$19,700. B.$28,500. C.$30,000. D.$31,100. E.$33,900.

Q: Response-based competitive advantage can be A) flexible response B) reliable response C) quick response D) all of the above E) none of the above

Q: Which of the following influences layout design? A) inventory requirements B) capacity needs C) personnel levels D) technology decisions E) All of the above influence layout decisions.

Q: Junior Snacks reports the following information from its sales budget: Expected Sales: October"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. $143,000 November"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. 151,000 December"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 187,000 All sales are on credit and are expected to be collected 40% in the month of sale and 60% in the month following sale. The total amount of cash expected to be received from customers in November is: A.$146,200. B.$ 85,800. C.$151,000. D.$236,800. E.$60,400.

Q: A firm producing a good is more likely to have which set of the following characteristics compared to a firm providing a service? A) many subjective quality standards, tangible product, and locate away from customers B) many subjective quality standards, intangible product, and locate away from customers C) many objective quality standards, tangible product, and locate near customers D) many objective quality standards, tangible product, and locate away from customers E) many objective quality standards, intangible product, and locate away from customers

Q: Which of the following is an example of competing on quick response? A) A firm produces its product with less raw material waste than its competitors. B) A firm offers more reliable products than its competitors. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes is capacity more effectively than its competitors. E) A firm advertises more than its competitors.

Q: Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. $90,000 August"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. 104,000 September"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 120,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is: A.$ 30,000. B.$ 78,000. C.$108,000. D.$120,000. E.$130,500.

Q: Franz Colruyt has achieved low-cost leadership through A) effective use of voice mail B) plastic, not paper, shopping bags C) background music that subtly encourages shoppers to buy more D) converting factories, garages, and theaters into retail outlets E) exclusive use of the Euro

Q: Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow: A. $0. B. $. $10,000 C. $6,700. D. $7,000. E. $27,700.

Q: Franz Colruyt has achieved low-cost leadership through A) Spartan headquarters B) absence of voice mail C) low-cost facilities D) no background music E) all of the above

Q: Which of the following is the best example of competing on low-cost leadership? A) A firm produces its product with less raw material waste than its competitors. B) A firm offers more reliable products than its competitors. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm's research and development department generates many ideas for new products. E) A firm advertises more than its competitors.

Q: Experience Differentiation A) isolates the consumer from the delivery of a service B) is an extension of product differentiation in the service sector C) uses only the consumer's senses of vision and sound D) keeps consumers from becoming active participants in the service E) is the same as product differentiation, but applied in the service sector

Q: Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: A.Borrow $4,500. B.Borrow $2,500. C.Borrow $10,000. D.Repay $7,500. E.Repay $2,500.

Q: Which of the following best describes "experience differentiation"? A) immerses consumers in the delivery of a service B) uses people's five senses to enhance the service C) complements physical elements with visual and sound elements D) consumers may become active participants in the product or service E) All of the above are elements of experience differentiation.

Q: Which of the following budgets is not completed before a cash budget is prepared? A.Capital expenditures budget. B.Sales budget. C.Merchandise purchases budget. D.General and administrative expense budget. E.Budgeted income statement.

Q: The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is A) mass production B) time-based competition C) differentiation D) flexible response E) experience differentiation

Q: Which of the following is an example of competing on the basis of differentiation? A) A firm manufactures its product with less raw material waste than its competitors do. B) A firm's products are introduced into the market faster than its competitors' products are. C) A firm's distribution network routinely delivers its product on time. D) A firm offers more reliable products than its competitors do. E) A firm advertises more than its competitors do.

Q: Which of the following statements best characterizes delivery reliability? A) a company that always delivers on the same day of the week B) a company that always delivers at the promised time C) a company that delivers more frequently than its competitors D) a company that delivers faster than its competitors E) a company that has a computerized delivery scheduling system

Q: Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for the fourth quarter should be: A.$134,000. B.$109,000. C.$ 91,500. D.$ 25,000. E.$ 91,000.

Q: A strategy is a(n) A) set of opportunities in the marketplace B) broad statement of purpose C) simulation used to test various product line options D) plan for cost reduction E) action plan to achieve the mission

Q: Which of the international operations strategies involves a focus on low cost reductions and high local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) none of the above

Q: The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Total budgeted sales of both products for the year would be: A.$ 42,000. B.$200,000. C.$264,000. D.$464,000. E.$500,000.

Q: The ability of an organization to produce goods or services that have some uniqueness in their characteristics is A) mass production B) time-based competition C) competing on productivity D) competing on flexibility E) competing on differentiation

Q: Which of the following has progressed the furthest along its product life cycle? A) drive-thru restaurants B) Boeing 787 C) iPods D) Twitter E) Xbox 360

Q: A firm can effectively use its operations function to yield competitive advantage through all of the following except A) customization of the product B) setting equipment utilization goals below the industry average C) speed of delivery D) constant innovation of new products E) maintaining a variety of product options

Q: Garcia Manufacturing's April sales forecast projects that 5,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted purchases of units in April would be: A.5,000 units. B.6,000 units. C.5,300 units. D.6,300 units. E.Some other amount.

Q: According to the authors, which of the following strategic concepts allow firms to achieve their missions? A) productivity, efficiency, and quality leadership B) differentiation, cost leadership, and quick response C) differentiation, quality leadership, and quick response D) distinctive competency, cost leadership, and experience E) differentiation, distinctive competency, quality leadership, and capacity

Q: Bioclean Co. sells a biodegradable cleaning product and has predicted the following sales for the first four months of the current year: Jan. Feb. March April Sales in Units "u00a6"u00a6"u00a6.. 1,800 2,000 2,100 1,600 Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? A.2,000. B.2,420. C.2,020. D.1,600 E.2,820.

Q: Which of the following is least likely to be a Cost Leadership competitive advantage? A) low overhead B) effective capacity use C) inventory management D) broad product line E) mass production

Q: Which of the international operations strategies involves a focus on high cost reductions and low local responsiveness? A) international strategy B) global strategy C) transnational strategy D) multidomestic strategy E) none of the above

Q: Which of the following is true? A) Corporate mission is shaped by functional strategies. B) Corporate strategy is shaped by functional strategies. C) Functional strategies are shaped by corporate strategy. D) External conditions are shaped by corporate mission. E) Functional area missions are merged to become the organizational mission.

Q: Masterson Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The January 1 inventory for this material is 16,800 liters. What is the budgeted cost of materials purchases for April? A. $106,560. B. $101,380. C. $103,600. D. $72,520. E. $132,460.

Q: The fundamental purpose of an organization's mission statement is to A) create a good human relations climate in the organization B) define the organization's purpose in society C) define the operational structure of the organization D) generate good public relations for the organization E) define the functional areas required by the organization

Q: Schrank Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. How many units must be purchased in September? A.14,000. B.20,000. C.22,000. D.24,000. E.28,000.

Q: Alliance Company's budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each month's ending raw materials inventory should equal 40% of the following month's budgeted materials. The January 1 inventory for this material is 38,400 pounds. What is the budgeted materials need in pounds for January? A. 102,400 pounds. B. 96,000 pounds. C. 57,600 pounds. D. 140,800 pounds. E. 83,200 pounds.

Q: What term describes how an organization expects to achieve its missions and goals? A) conditional expectation B) tactic C) SWOT D) strategy E) competitive advantage

Q: A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called: A.Just-in-time inventory. B.Budgeted stock. C.Continuous inventory. D.Capital stock. E.Safety stock.

Q: Which of the following statements about organizational missions is false? A) They reflect a company's purpose. B) They indicate what a company intends to contribute to society. C) They are formulated after strategies are known. D) They define a company's reason for existence. E) They provide guidance for functional area missions.

Q: Which of the following activities takes place most immediately once the mission has been developed? A) The firm develops alternative or back-up missions in case the original mission fails. B) The functional areas develop their functional area strategies. C) The functional areas develop their supporting missions. D) The ten OM decision areas are prioritized. E) Operational tactics are developed.

Q: A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2 kg of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 18,000 kg and the cost per kg is $8. What is the budgeted materials purchases cost for the first quarter? A.$720,000. B.$672,000. C.$576,000. D.$729,600. E.$864,000.

Q: Which of the following is true about business strategies? A) An organization should stick with its strategy for the life of the business. B) All firms within an industry will adopt the same strategy. C) Well defined missions make strategy development much easier. D) Strategies are formulated independently of SWOT analysis. E) Organizational strategies depend on operations strategies.

Q: With reference to cultural and ethical issues, the World Trade Organization has A) succeeded in providing equal protection of intellectual property among nations B) made progress in providing equal protection of intellectual property among nations C) phased out all trade and tariff barriers between the United States and Mexico D) eliminated slave labor and child labor E) played little role in addressing cultural and ethical issues among nations

Q: A sporting equipment store expects to purchase $8,000 of ski boots in October. The store had $2,000 of ski boots in merchandise inventory at the beginning of October, and expects to have $3,000 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October? A.$ 5,000. B.$ 7,000. C.$ 8,000. D.$ 9,000. E.$10,000.

Q: NAFTA seeks to A) substitute cheap labor in Mexico for expensive labor in the United States B) curb illegal immigration from Mexico to the United States C) phase out all trade and tariff barriers between North America and South America D) phase out all trade and tariff barriers between the United States, Canada, and Mexico E) All of the above are NAFTA goals.

Q: Which of the following does not represent a reason for globalizing operations? A) reduce costs B) improve the supply chain C) reduce responsiveness D) attract and retain global talent E) None of the above are valid reasons for globalizing operations.

Q: Which of the following represent reasons for globalizing operations? A) to gain improvements in the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above

Q: Which of the following is true of maquiladoras? A) They discourage foreign businesses from outsourcing. B) They assess tariffs only on the value-added work done. C) They originated in China. D) none of the above E) all of the above

Q: The term maquiladora is most synonymous with A) free trade zones in Mexico B) Chinese forced labor camps C) home-based or cottage industry D) areas that do not meet U.S. standards for workplace safety and pollution E) none of the above

Q: Multinational organizations can shop from country to country and cut costs through A) lower wage scales B) lower indirect costs C) less stringent regulations D) lower taxes and tariffs E) all of the above