Question 1

One-of-a-kind production of a product based on a customer's unique specifications is called a project.

Accepted Answer

A) True 
 B)False

Question 2

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives:   The break-even volume for Process B is

Accepted Answer

A) 50,000 units. 
B) 62,500 units. 
C) 30,000 units. 
D) 20,000 units. 
A) 50,000 units. 
B) 62,500 units. 
C) 30,000 units. 
D) 20,000 units.

Question 3

A firm's process strategy rarely defines its capital intensity.

Accepted Answer

A) True 
 B)False

Question 4

Technology decisions are often a significant factor in process planning.

Accepted Answer

A) True 
 B)False

Question 5

Customers are rarely involved in a project that takes an extended period of time to complete.

Accepted Answer

A) True 
 B)False

Question 6

Most of the operations in batch production involve fabrication rather than assembly.

Accepted Answer

A) True 
 B)False

Question 7

Outsourcing occurs when a company cannot or will not make all the parts that go into a product.

Accepted Answer

A) True 
 B)False

Question 8

Most of the operations in batch production involve

Accepted Answer

A) fabrication. 
B) assembly. 
C) continuous processing. 
D) outsourcing. 
A) fabrication. 
B) assembly. 
C) continuous processing. 
D) outsourcing.

Question 9

A print shop is an example of which of the following process choices?

Accepted Answer

A) project 
B) batch production 
C) continuous production 
D) mass production 
A) project 
B) batch production 
C) continuous production 
D) mass production

Question 10

Which of the following is not an advantage of batch production?

Accepted Answer

A) frequent changes in product mix 
B) flexibility 
C) customization of output 
D) quality reputation 
A) frequent changes in product mix 
B) flexibility 
C) customization of output 
D) quality reputation

Question 11

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35.00 then the break-even volume for this item is

Accepted Answer

A) 6,000 units. 
B) 6,429 units. 
C) 72,500 units. 
D) 90,000 units. 
A) 6,000 units. 
B) 6,429 units. 
C) 72,500 units. 
D) 90,000 units.

Question 12

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

Accepted Answer

A) vertical integration. 
B) process flexibility. 
C) process planning. 
D) capital intensity. 
A) vertical integration. 
B) process flexibility. 
C) process planning. 
D) capital intensity.

Question 13

A process flowchart is a useful tool for analyzing a process because it often highlights non-productive activities.

Accepted Answer

A) True 
 B)False

Question 14

One characteristic of batch production is variable demand.

Accepted Answer

A) True 
 B)False

Question 15

Batch production is also known as a job shop because it creates more jobs than any of the other process choices.

Accepted Answer

A) True 
 B)False

Question 16

Subcontracting is rarely a source of human resources for a project.

Accepted Answer

A) True 
 B)False

Question 17

Mass production is often associated with assembly lines.

Accepted Answer

A) True 
 B)False

Question 18

Process planning determines how a manufactured good is produced or a service is provided.

Accepted Answer

A) True 
 B)False

Question 19

Steel,paper,paints,and chemicals are examples of products that use

Accepted Answer

A) batch production. 
B) repetitive production. 
C) continuous production. 
D) mass production. 
A) batch production. 
B) repetitive production. 
C) continuous production. 
D) mass production.

Question 20

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives:   If total demand (volume)is 150,000 units,then the company should

Accepted Answer

A) select Process A with a profit of $1,300,000 to maximize profit. 
B) select Process B with a profit of $750,000 to maximize profit. 
C) select Process A with a profit of $1,000,000 to maximize profit. 
D) select Process B with a profit of $1,050,000 to maximize profit. 
A) select Process A with a profit of $1,300,000 to maximize profit. 
B) select Process B with a profit of $750,000 to maximize profit. 
C) select Process A with a profit of $1,000,000 to maximize profit. 
D) select Process B with a profit of $1,050,000 to maximize profit.

Exam 7: Processes and Technology

One-of-a-kind production of a product based on a customer's unique specifications is called a project.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives: The break-even volume for Process B is

A firm's process strategy rarely defines its capital intensity.

Technology decisions are often a significant factor in process planning.

Customers are rarely involved in a project that takes an extended period of time to complete.

Most of the operations in batch production involve fabrication rather than assembly.

Outsourcing occurs when a company cannot or will not make all the parts that go into a product.

Most of the operations in batch production involve

A print shop is an example of which of the following process choices?

Which of the following is not an advantage of batch production?

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35.00 then the break-even volume for this item is

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

A process flowchart is a useful tool for analyzing a process because it often highlights non-productive activities.

One characteristic of batch production is variable demand.

Batch production is also known as a job shop because it creates more jobs than any of the other process choices.

Subcontracting is rarely a source of human resources for a project.

Mass production is often associated with assembly lines.

Process planning determines how a manufactured good is produced or a service is provided.

Steel,paper,paints,and chemicals are examples of products that use

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives: If total demand (volume)is 150,000 units,then the company should

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Product Design

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