Question 1

Why is it beneficial for a firm to use a contract manufacturer or contract service provider? Provide at least one example of a firm that uses a contract provider and the benefit experienced because of this.

Accepted Answer

The answer of Why is it beneficial for a firm...

Question 2

Products that can be easily recycled generally create positive impressions among consumers.

Accepted Answer

A) True 
 B)False

Question 3

All of the following are leading to shortened product life cycles except?

Accepted Answer

A)  Decreased competition 
B)  Changing tastes 
C)  Cheaper materials 
D)  Technology changes

Question 4

Customers are often more involved in the design of services than in the design of goods.

Accepted Answer

A) True 
 B)False

Question 5

The simultaneous design of products and their manufacturing and support processes is known as concurrent engineering.

Accepted Answer

A) True 
 B)False

Question 6

The automotive industry often uses __________ to produce components parts.

Accepted Answer

The answer of The automotive industry often uses __________ to...

Question 7

A product design resulting in a price more than customers might reasonably expect to pay is an example of?

Accepted Answer

A)  Poor internal fit 
B)  Poor external fit 
C)  Poor internal and external fit 
D)  Neither poor internal nor poor external fit

Question 8

When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n)?

Accepted Answer

A)  Dependent manufacturer 
B)  Allied manufacturer 
C)  Contract manufacturer 
D)  Conscripted manufacturer

Question 9

Which Excel function is used to calculate net present value?

Accepted Answer

A)  NPER 
B)  NPV 
C)  PMT 
D)  PRICEDISC

Question 10

"Do we have realistic sales and cost estimates?" is what type of product screening issue?

Accepted Answer

A)  Product 
B)  Competition 
C)  Financials 
D)  "Do we have realistic sales and cost estimates?" is not a product screening issue

Question 11

____________ is the practice of copying what others do best.

Accepted Answer

The answer of ____________ is the practice of copying what...

Question 12

A firm is trying to determine which of two products it should launch. Product A has an expected life of three years. It will bring in cash flows of $10,000 in each of the three years. Product B has an expected life of two years. It will bring in cash flows of $15,000 in each of the two years. Assume a discount rate of 8%. Which product should the firm, based on NPV alone, select?

Accepted Answer

A)  Product A 
B)  Product B 
C)  Product A and B are equivalent 
D)  NPV for the products cannot be calculated with the information given.

Question 13

Which question is not associated with the product when conducting product screening?

Accepted Answer

A)  What unmet needs will this product satisfy? 
B)  What is the expected product life? 
C)  How will we distribute the product? 
D)  What are our product's competitive strengths?

Question 14

A spice and seasonings manufacturer sources many of its raw materials from an emerging market. How would this manufacturer ensure that its raw materials were being produced in a sustainable manner?

Accepted Answer

The answer of A spice and seasonings manufacturer sources many...

Question 15

Products that can be easily recycled drive ________ impressions among consumers.

Accepted Answer

The answer of Products that can be easily recycled drive...

Question 16

The integration and improvement of economic, environmental, and social/ethical performance of products and services refers to __________.

Accepted Answer

The answer of The integration and improvement of economic, environmental,...

Question 17

A firm is trying to determine if it should launch a product. The product has an expected life of three years. It will bring in cash flows of $10,000 in each of the three years. The company estimates that it will invest $20,000 in product research and development costs. What is the estimated IRR for this product? Choose the IRR value that is closest to the amount invested.

Accepted Answer

A)  20% 
B)  21% 
C)  22% 
D)  23%

Question 18

Develop a house of quality for a hypothetical cell phone manufacturer. What would be potential customer requirements? Technical characteristics? How would your product likely rate against competitors?

Accepted Answer

The answer of Develop a house of quality for a...

Question 19

A firm is trying to determine which of two products it should launch. Product A has an expected life of three years. It will bring in cash flows of $11,000 in each of the three years. Product B has an expected life of two years. It will bring in cash flows of $15,000 in each of the two years. Assume a discount rate of 8%. Which product should the firm, based on NPV alone, select?

Accepted Answer

A)  Product A 
B)  Product B 
C)  Product A and B are equivalent 
D)  NPV for the products cannot be calculated with the information given.

Question 20

A firm estimates that it will receive cash flows from a new product of $150,000 in Year 1, $220,000 in Year 2, and $150,000 in Year 3. If a discount rate of 7% is assumed, what is the NPV of this product's cash flows?

Accepted Answer

A)  $454,788 
B)  $556,400 
C)  $520,000 
D)  NPV cannot be determined from the information given

Exam 3: Product Design and Development

Why is it beneficial for a firm to use a contract manufacturer or contract service provider? Provide at least one example of a firm that uses a contract provider and the benefit experienced because of this.

Products that can be easily recycled generally create positive impressions among consumers.

All of the following are leading to shortened product life cycles except?

Customers are often more involved in the design of services than in the design of goods.

The simultaneous design of products and their manufacturing and support processes is known as concurrent engineering.

The automotive industry often uses __________ to produce components parts.

A product design resulting in a price more than customers might reasonably expect to pay is an example of?

When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n) ?

Which Excel function is used to calculate net present value?

"Do we have realistic sales and cost estimates?" is what type of product screening issue?

____________ is the practice of copying what others do best.

Which question is not associated with the product when conducting product screening?

A spice and seasonings manufacturer sources many of its raw materials from an emerging market. How would this manufacturer ensure that its raw materials were being produced in a sustainable manner?

Products that can be easily recycled drive ________ impressions among consumers.

The integration and improvement of economic, environmental, and social/ethical performance of products and services refers to __________.

Develop a house of quality for a hypothetical cell phone manufacturer. What would be potential customer requirements? Technical characteristics? How would your product likely rate against competitors?

A firm estimates that it will receive cash flows from a new product of $150,000 in Year 1, $220,000 in Year 2, and $150,000 in Year 3. If a discount rate of 7% is assumed, what is the NPV of this product's cash flows?