MGMT 3320 EXAM 1 QUESTIONS WITH
CORRECT ANSWERS
Which of the following makes using present value approaches in capacity decisions
difficult?
A) The discount rate must be adjusted to account for inflation.
B) Some cash flows are positive and other cash flows are negative.
C) The payback period might not be long enough to justify a capacity decision.
D) Capacity decisions are made amidst much uncertainty, so cash flows cannot be
estimated with great accuracy.
E) None of the above. - ANSWER-D) Capacity decisions are made amidst much
uncertainty, so cash flows cannot be estimated with great accuracy.
Which of these factors wouldn't be subtracted from design capacity when calculating
effective capacity?
A) personal time
B) maintenance
C) scrap
D) operating hours per day
E) all of the above would be subtracted in the calculation - ANSWER-E) all of the
above would be subtracted in the calculation
Capacity planning decisions have both long-term and short-term considerations.
Which of the following statements are true?
(I) Long-term considerations relate to the overall level of capacity.
(II) Short-term considerations relate to the probable variations in capacity
requirements.
(III) Short-term considerations determine the "effective capacity."
A) Only one of the three statements is true.
B) I and II
C) II and III
D) I and III - ANSWER-B) I and II
Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it
will cost $60,000. He estimates that he could charge $25.00 for an office visit to have
a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00.
How many HIV blood analyses would he have to perform in order to make a profit of
$15,000?
A) 3,000
B) 4,800
C) 5,000
D) 12,000
E) 3,750 - ANSWER-E) 3,750
, The term 'degrees of newness' is associated with:
A) average age of employees
B) average length of time on the job
C) total years of business experience
D) degree of design change
E) average age of the capital equipment - ANSWER-D) degree of design change
Which of the following statements about CAD is not true?
A) It increases the productivity of designers.
B) It uses computer graphics.
C) It requires a good data base.
D) Some systems permit engineering or cost analysis of proposed designs.
E) It is used successfully by all manufacturing companies. - ANSWER-E) It is used
successfully by all manufacturing companies.
The research and development activity which starts after positive research results
are available and attempts to turn these results into useful commercial applications
is:
A) basic research
B) applied research
C) development
D) redesign
E) commercial research - ANSWER-C) development
A formal way to document customer requirements is:
A) consumer surveys
B) quality function deployment (QFD)
C) focus groups
D) Delphi technique
E) sales/marketing matrix - ANSWER-B) quality function deployment (QFD)
Which of the following is an issue that designers must take into account in product
and service design?
A) legal, environmental, and ethical issues
B) reliability
C) standardization
D) range of operating conditions
E) all of the above - ANSWER-E) all of the above
Mobile phones have evolved from devices intended to place and receive phone calls
into handheld multimedia communications devices, but in the eyes of some
customers these new features make the phones less desirable. This is an example
of _________.
A) robust design
B) creeping featurism
C) sustainable design
D) quality function deployment
E) component commonality - ANSWER-B) creeping featurism
CORRECT ANSWERS
Which of the following makes using present value approaches in capacity decisions
difficult?
A) The discount rate must be adjusted to account for inflation.
B) Some cash flows are positive and other cash flows are negative.
C) The payback period might not be long enough to justify a capacity decision.
D) Capacity decisions are made amidst much uncertainty, so cash flows cannot be
estimated with great accuracy.
E) None of the above. - ANSWER-D) Capacity decisions are made amidst much
uncertainty, so cash flows cannot be estimated with great accuracy.
Which of these factors wouldn't be subtracted from design capacity when calculating
effective capacity?
A) personal time
B) maintenance
C) scrap
D) operating hours per day
E) all of the above would be subtracted in the calculation - ANSWER-E) all of the
above would be subtracted in the calculation
Capacity planning decisions have both long-term and short-term considerations.
Which of the following statements are true?
(I) Long-term considerations relate to the overall level of capacity.
(II) Short-term considerations relate to the probable variations in capacity
requirements.
(III) Short-term considerations determine the "effective capacity."
A) Only one of the three statements is true.
B) I and II
C) II and III
D) I and III - ANSWER-B) I and II
Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it
will cost $60,000. He estimates that he could charge $25.00 for an office visit to have
a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00.
How many HIV blood analyses would he have to perform in order to make a profit of
$15,000?
A) 3,000
B) 4,800
C) 5,000
D) 12,000
E) 3,750 - ANSWER-E) 3,750
, The term 'degrees of newness' is associated with:
A) average age of employees
B) average length of time on the job
C) total years of business experience
D) degree of design change
E) average age of the capital equipment - ANSWER-D) degree of design change
Which of the following statements about CAD is not true?
A) It increases the productivity of designers.
B) It uses computer graphics.
C) It requires a good data base.
D) Some systems permit engineering or cost analysis of proposed designs.
E) It is used successfully by all manufacturing companies. - ANSWER-E) It is used
successfully by all manufacturing companies.
The research and development activity which starts after positive research results
are available and attempts to turn these results into useful commercial applications
is:
A) basic research
B) applied research
C) development
D) redesign
E) commercial research - ANSWER-C) development
A formal way to document customer requirements is:
A) consumer surveys
B) quality function deployment (QFD)
C) focus groups
D) Delphi technique
E) sales/marketing matrix - ANSWER-B) quality function deployment (QFD)
Which of the following is an issue that designers must take into account in product
and service design?
A) legal, environmental, and ethical issues
B) reliability
C) standardization
D) range of operating conditions
E) all of the above - ANSWER-E) all of the above
Mobile phones have evolved from devices intended to place and receive phone calls
into handheld multimedia communications devices, but in the eyes of some
customers these new features make the phones less desirable. This is an example
of _________.
A) robust design
B) creeping featurism
C) sustainable design
D) quality function deployment
E) component commonality - ANSWER-B) creeping featurism
