Question 1

Break-even analysis is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

A) True 
 B)False

Question 2

Indirect costs are those costs which are directly tied to the manufacturing of a product,or the delivery of a service,depending on the type of business being assessed.

Accepted Answer

A) True 
 B)False

Question 3

An organization's cost base is made up of the _______ costs associated with delivering the organization's products or services to the marketplace.

Accepted Answer

A)  good 
B)  aggregate 
C)  total 
D)  bad 
E)  positive 
A)  good 
B)  aggregate 
C)  total 
D)  bad 
E)  positive

Question 4

Producers often use market share as a primary basis for setting prices on the goods and services they offer the public.

Accepted Answer

A) True 
 B)False

Question 5

The market pressures which will impact the cost base going forward is an area of focus for managers to develop a good understanding of an organization's cost base.

Accepted Answer

A) True 
 B)False

Question 6

is called the break-even point.

Accepted Answer

A) True 
 B)False

Question 7

Phil asks you to calculate the break-even point for his firm.You respond that you will need sales revenue and total liabilities.

Accepted Answer

A) True 
 B)False

Question 8

Understanding an organization's cost base is essential in determining the required communications strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Accepted Answer

A) True 
 B)False

Question 9

Variable costs are those costs that increase as the level of production increases.

Accepted Answer

A) True 
 B)False

Question 10

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a penetration strategy.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are areas of focus for managers to develop a good understanding of an organization's cost base,EXCEPT:

Accepted Answer

A)  The make-up of their cost base 
B)  The percentage of the cost base which lies within their control in the near term 
C)  The sell pressures which will impact the cost base 
D)  The market pressures which will impact the cost base going forward 
E)  Understanding the volume and dollar requirements necessary to achieve breakeven 
A)  The make-up of their cost base 
B)  The percentage of the cost base which lies within their control in the near term 
C)  The sell pressures which will impact the cost base 
D)  The market pressures which will impact the cost base going forward 
E)  Understanding the volume and dollar requirements necessary to achieve breakeven

Question 12

An organization's cost base is made up of the bad costs associated with delivering the organization's products or services to the marketplace.

Accepted Answer

A) True 
 B)False

Question 13

Ongoing operating levels below BEP will eventually result in the organization becoming ruined.

Accepted Answer

A) True 
 B)False

Question 14

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is balanced quantity.

Accepted Answer

A) True 
 B)False

Question 15

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the skimming price strategy.

Accepted Answer

A) True 
 B)False

Question 16

A skimming pricing strategy establishes a low price in order to ensure little competition.

Accepted Answer

A) True 
 B)False

Question 17

Making operations decisions is a reason for managers to understand the configuration of the cost base of the organization.

Accepted Answer

A) True 
 B)False

Question 18

The formula for the Break-even Point is:

Accepted Answer

A)  (Total Fixed Costs + Profit Objective) divided by (1 - Variable Cost%) 
B)  (Total Variable Costs) divided by (1-Fixed Cost%). 
C)  (Total Variable Costs% + Profit Objective%) divided by (Total Fixed Costs) 
D)  (Total Fixed Costs + Profit Objective) divided by (1 - Variable Cost%). 
E)  (Total Fixed Costs) divided by (1 - Variable Cost%) 
A)  (Total Fixed Costs + Profit Objective) divided by (1 - Variable Cost%) 
B)  (Total Variable Costs) divided by (1-Fixed Cost%). 
C)  (Total Variable Costs% + Profit Objective%) divided by (Total Fixed Costs) 
D)  (Total Fixed Costs + Profit Objective) divided by (1 - Variable Cost%). 
E)  (Total Fixed Costs) divided by (1 - Variable Cost%)

Question 19

To build an understanding of the cost base is accomplished by working through the various zones within an organization's departments and determining the cost composition of each.

Accepted Answer

A) True 
 B)False

Question 20

is fundamental to determining the feasibility of various sales objective levels.

Accepted Answer

A) True 
 B)False

Break-even analysis is the process used to determine the profitability of a product at various levels of sales.

Indirect costs are those costs which are directly tied to the manufacturing of a product,or the delivery of a service,depending on the type of business being assessed.

An organization's cost base is made up of the _______ costs associated with delivering the organization's products or services to the marketplace.

Producers often use market share as a primary basis for setting prices on the goods and services they offer the public.

The market pressures which will impact the cost base going forward is an area of focus for managers to develop a good understanding of an organization's cost base.

is called the break-even point.

Phil asks you to calculate the break-even point for his firm.You respond that you will need sales revenue and total liabilities.

Understanding an organization's cost base is essential in determining the required communications strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Variable costs are those costs that increase as the level of production increases.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a penetration strategy.

All of the following are areas of focus for managers to develop a good understanding of an organization's cost base,EXCEPT:

An organization's cost base is made up of the bad costs associated with delivering the organization's products or services to the marketplace.

Ongoing operating levels below BEP will eventually result in the organization becoming ruined.

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is balanced quantity.

A skimming pricing strategy establishes a low price in order to ensure little competition.

Making operations decisions is a reason for managers to understand the configuration of the cost base of the organization.

The formula for the Break-even Point is:

To build an understanding of the cost base is accomplished by working through the various zones within an organization's departments and determining the cost composition of each.

is fundamental to determining the feasibility of various sales objective levels.

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Ethics and Corporate Social Responsibility

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

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Exam 12: Technology and Operations Management

Break-even analysis is the process used to determine the profitability of a product at various levels of sales.

Indirect costs are those costs which are directly tied to the manufacturing of a product,or the delivery of a service,depending on the type of business being assessed.

An organization's cost base is made up of the _______ costs associated with delivering the organization's products or services to the marketplace.

Producers often use market share as a primary basis for setting prices on the goods and services they offer the public.

The market pressures which will impact the cost base going forward is an area of focus for managers to develop a good understanding of an organization's cost base.

is called the break-even point.

Phil asks you to calculate the break-even point for his firm.You respond that you will need sales revenue and total liabilities.

Understanding an organization's cost base is essential in determining the required communications strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Variable costs are those costs that increase as the level of production increases.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a penetration strategy.

All of the following are areas of focus for managers to develop a good understanding of an organization's cost base,EXCEPT:

An organization's cost base is made up of the bad costs associated with delivering the organization's products or services to the marketplace.

Ongoing operating levels below BEP will eventually result in the organization becoming ruined.

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is balanced quantity.

A skimming pricing strategy establishes a low price in order to ensure little competition.

Making operations decisions is a reason for managers to understand the configuration of the cost base of the organization.

The formula for the Break-even Point is:

To build an understanding of the cost base is accomplished by working through the various zones within an organization's departments and determining the cost composition of each.

is fundamental to determining the feasibility of various sales objective levels.

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Ethics and Corporate Social Responsibility

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters