Financial Accounting Test Bank Latest 2026–2027 Updated. Verified Questions and Answers Covering Fundamental Accounting Principles. Complete Chapter-by-Chapter Practice for Exam Preparation and Academic Excellence.

Chapter 01 - The Operations Function


Chapter 1
The Operations Function

Multiple Choice Questions



1. Why is operations management a more encompassing term than production L L L L



management?
A. Operations management is concerned with multiple products and services
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B. Operations management refers to service as well as manufacturing organizations
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C. Operations management is broader including the financing and marketing functions
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D. Operations management makes use of the tools of quantitative analysis and computer
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systems



2. Which of the following functions is responsible for the actual movement of goods
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and/or services across organizations?
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A. Logistics
B. Operations
C. Purchasing
D. None of these
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3. Approximately, what percentage of the American workforce works in service
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industries?
A. 20%
B. 40%
C. 80%
D. 90%



4. The four decision areas in operations management are:
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A. Planning, technology, inventory, and control
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B. Process, quality, capacity, and inventory
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C. Process, quality, technology, and capacity
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D. None of these
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,Chapter 01 - The Operations Function




5. A productive systems approach:
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A. Views operations as a separate organizational function
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B. Must provide feedback information for control of process inputs and technology
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C. Is of limited use in service organizations
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D. Disregards human and social concerns L L L L




6. Capacity decisions: L



A. Include staffing and scheduling L L L



B. Include inventory control L L



C. Include defining product specifications
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D. None of these L L




7. Inventory decisions involve: L L



A. Determining what to order, how much to order, and when to order L L L L L L L L L L L



B. Tracking the flow of materials L L L L



C. Managing the finished goods inventories L L L L



D. All of these
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8. The contemporary operations themes signify that:
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A. More emphasis should be placed on manufacturing than on service industries
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B. Every operation should be externally directed to meet the customers' requirements
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C. Operations decisions should precede decisions in other functions in an organization
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D. To be competitive, strategies for operations should exclude broader supply chain issues
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9. The essence of operations management can be described by:
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A. Process, capacity, and people L L L



B. Decisions, function, and process L L L



C. Planning, control, and organization L L L



D. Integrated planning and control L L L

,Chapter 01 - The Operations Function




10. Which of the following is not a contemporary theme in operations?
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A. Globalization of Operations L L



B. Lean Operations
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C. Quality Teams L



D. Environmental Concerns and Sustainability L L L




11. The three primary functions that exist in most business organizations are:
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A. Operations, accounting, and finance L L L



B. Operations, production, and finance L L L



C. Production, marketing, and human resources
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D. Operations, finance, and marketing L L L




12. The three major functions of business organizations:
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A. Are mutually exclusive
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B. Function independently of each other
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C. Interface with each other L L L



D. Do not interface with each other
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13. Which one of the following would not generally be classified as an input in a
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university system?L



A. Staff
B. Facilities
C. Knowledge
D. Research



14. The four major decision responsibilities of operations management are:
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A. Process, quality, capacity, and human resources
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B. Process, quality, human resources, and inventory
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C. Quality, inventory, human resources, and capacity
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D. Process, capacity, quality, and inventory
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, Chapter 01 - The Operations Function



15. Which of the following is not in the process category of the operations decision
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framework?
A. Layout of the facility L L L



B. Job design
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C. The type of equipment and technology
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D. Product or service inspection L L L




16. Supply chain management includes the integration of:
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A. Suppliers
B. Manufacturers
C. Customers
D. All of the above
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17. The supply chain extends from:
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A. Supplier to manufacturing L L



B. Supplier to supplier L L



C. Dealer to customer L L



D. Supplier to customer L L




18. Supply chain management includes all of the following except:
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A. Purchasing
B. Inventory control L



C. Advertising
D. Customer service L




19. A comprehensive decision-making framework for operations includes:
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A. Consideration of other organizational functions L L L L



B. Consideration of operations in isolation of other functions L L L L L L L



C. Suppliers but not customers L L L



D. Customers but not suppliers L L L