OSC Exam 1 2026 Exam
Questions and Correct Answers |
New Update
WIP (work-in-progress) is: - 🧠 ANSWER ✔✔The name for the inputs that
are not yet outputs
What is the output for a law firm? - 🧠 ANSWER ✔✔A case that is resolved
in some way (maybe it was dropped, or settlement achieve, or a court
decision rendered)
What is the input for a hospital? - 🧠 ANSWER ✔✔A sick or injured patient
,What resource(s) does an airline use to create their output? - 🧠 ANSWER
✔✔All of them, passengers, pilots, airports
Let's say a restaurant sells a meal for $20;spends 20% ($4) for the food
ingredients;spends 40% ($8) for the labor directly involved in cooking and
serving one meal;gets 60 customers per each of 30 days per month;
andincurs monthly fixed costs of $12,000.
What is the restaurant's monthly profit? - 🧠 ANSWER ✔✔2,400, variable
cost is ($4 + $8) (60/day) (30 days/mo) = $21,600. total sales is ($20/dish)
(60 dishes/day) (30 days/mo) = $36,000/mo.Profit = $36,000 - $21,600 -
$12,000 = $2,400
Starting with the base case below, let's say a restaurant takes out non-
value-adding process steps and thereby cuts direct labor time by 5%.
(Coincidentally, workers are happier, however we don't factor that effect
into our analysis here.) By how much does it increase its absolute profit?
Same base case as question 5 - 🧠 ANSWER ✔✔Total sales = ($20/dish)
(60 dishes/day) (30 days/mo) = $36,000/mo.Variable cost = [$4 + (0.95 x
$8)] (60/day) (30 days/mo) = $20,880.Profit = $36,000 - $20,880 - $12,000
= $3,120.
% increase in profit = ($3,120 - $2,400) / $2,400 = 30%
, Starting with the base case below, let's say a restaurant implements a lean
op's initiative such that it is able to increase capacity (the maximum
throughput rate) by 5% without an increase in fixed costs (that is, variable
cost per meal does not change but the number of meals sold increases by
5% but with no increase in fixed costs). Assuming the demand exists to
take advantage of the 5% capacity boost, by how much does the restaurant
increase its absolute profit? same base case - 🧠 ANSWER ✔✔answer=
30%. The new revenue is $20 x (1.05 x 1800) = $37,800 while the new
variable cost is $12 x (1.05 x 1800) = $22,680 and fixed costs remain at
$12,000 yielding total costs of $34,680 and profit of $$3120 which is an
increase of $720 which is 30% of $2400.
Starting with the base case below, let's say a restaurant improves its
inventory management practices and thereby reduces the variable cost of
ingredients by 5%. By how much does it increase its absolute profit? - 🧠
ANSWER ✔✔answer 15%, Total sales = ($20/dish) (60 dishes/day) (30
days/mo) = $36,000/mo.
Variable cost = [(0.95 x $4) + $8] (60/day) (30 days/mo) = $21,240.
Profit = $36,000 - $21,240 - $12,000 = $2,760.
% increase in profit = ($2,760 - $2,400) / $2,400 = 15%
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
Questions and Correct Answers |
New Update
WIP (work-in-progress) is: - 🧠 ANSWER ✔✔The name for the inputs that
are not yet outputs
What is the output for a law firm? - 🧠 ANSWER ✔✔A case that is resolved
in some way (maybe it was dropped, or settlement achieve, or a court
decision rendered)
What is the input for a hospital? - 🧠 ANSWER ✔✔A sick or injured patient
,What resource(s) does an airline use to create their output? - 🧠 ANSWER
✔✔All of them, passengers, pilots, airports
Let's say a restaurant sells a meal for $20;spends 20% ($4) for the food
ingredients;spends 40% ($8) for the labor directly involved in cooking and
serving one meal;gets 60 customers per each of 30 days per month;
andincurs monthly fixed costs of $12,000.
What is the restaurant's monthly profit? - 🧠 ANSWER ✔✔2,400, variable
cost is ($4 + $8) (60/day) (30 days/mo) = $21,600. total sales is ($20/dish)
(60 dishes/day) (30 days/mo) = $36,000/mo.Profit = $36,000 - $21,600 -
$12,000 = $2,400
Starting with the base case below, let's say a restaurant takes out non-
value-adding process steps and thereby cuts direct labor time by 5%.
(Coincidentally, workers are happier, however we don't factor that effect
into our analysis here.) By how much does it increase its absolute profit?
Same base case as question 5 - 🧠 ANSWER ✔✔Total sales = ($20/dish)
(60 dishes/day) (30 days/mo) = $36,000/mo.Variable cost = [$4 + (0.95 x
$8)] (60/day) (30 days/mo) = $20,880.Profit = $36,000 - $20,880 - $12,000
= $3,120.
% increase in profit = ($3,120 - $2,400) / $2,400 = 30%
, Starting with the base case below, let's say a restaurant implements a lean
op's initiative such that it is able to increase capacity (the maximum
throughput rate) by 5% without an increase in fixed costs (that is, variable
cost per meal does not change but the number of meals sold increases by
5% but with no increase in fixed costs). Assuming the demand exists to
take advantage of the 5% capacity boost, by how much does the restaurant
increase its absolute profit? same base case - 🧠 ANSWER ✔✔answer=
30%. The new revenue is $20 x (1.05 x 1800) = $37,800 while the new
variable cost is $12 x (1.05 x 1800) = $22,680 and fixed costs remain at
$12,000 yielding total costs of $34,680 and profit of $$3120 which is an
increase of $720 which is 30% of $2400.
Starting with the base case below, let's say a restaurant improves its
inventory management practices and thereby reduces the variable cost of
ingredients by 5%. By how much does it increase its absolute profit? - 🧠
ANSWER ✔✔answer 15%, Total sales = ($20/dish) (60 dishes/day) (30
days/mo) = $36,000/mo.
Variable cost = [(0.95 x $4) + $8] (60/day) (30 days/mo) = $21,240.
Profit = $36,000 - $21,240 - $12,000 = $2,760.
% increase in profit = ($2,760 - $2,400) / $2,400 = 15%
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
