Quick Check ?s

Which of the following is a current trend in production and operations management?

business process management (BPM)

"Investments in long-lived assets, such as land, buildings, machinery, equipment, and information services, that are expected to provide benefits over a period longer than one year."

capital expenditures

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called:

collateral

Which of the following factors will be important in the selection of a site for a production facility?

all the above

The set of values, ideas, attitudes, and symbols created to shape human behavior is

culture

Informed decision making flows from

data to information to knowledge

A retail manager who wants to know how his store s sales would be affected if he reduces the number of different national brands the store carries would use what type of information system?

decision support system

The idea behind_____ is to take the massive amounts of idle capacity sitting on desktops and in server farms and put it to use performing complex calculations that would otherwise have to be done on very large parallel supercomputers that would cost millions of dollars.

grid computing

Flexible manufacturing systems combine automated workstations with computer- controlled transportation devices that move materials between work stations and into and out of the system

true

One useful tool for routing is _____, where production managers map the flow from suppliers through the factory to customers.

value-stream mapping

Enterprise portals can take one of three forms. They are:

"B2B, B2E, and B2C"

Profit is the

"amount of money remaining from a firm s sales revenue after it deducts production costs, interest costs, and taxes"

The four traditional factors of production are

"natural resources, labor, capital, and entrepreneurship"

Which of the following statements about computer networks is true?

A computer network is a group of two or more computers linked together by communications channels to share data and information.

which of the following is an example of a data security issue?

All the above

Mutually advantageous trades are determined based on

Comparative advantage

"Bonds issued by states, cities, counties, and other state and local government agencies are government securities"

False

"Sales made, but for which payment has not yet been collected, are called accounts payable."

False

"The balance sheet summarizes the firm s revenues, expenses, and total profit or loss over a period."

False

"The five P's are product, promotion, price, people, and possession."

False

"The income statement is a summary of the money flowing into and out of a firm during a certain period, typically one year."

False

"The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activity for internal use is financial accounting."

False

Customer satisfaction is the ration of benefits for the customer to the sacrifice necessary to obtain those benefits

False

Customer value is the customers feeling that a product has met or exceed expectations

False

Just-in-time is a process eliminating steps in the production process that do not add benefits to customers

False

The generally accepted accounting principles are the global accounting standards following by all firms.

False

The income statement summarizes a firm s financial position at a specific point in time.

False

Gross Domestic Product

GDP is the total market value of all final goods and services produced within a nations borders each year

Why is creative destruction a good thing?

It is the source of new products and services.

_____ management focuses on gathering and sharing an organization s collective knowledge to improve productivity and foster innovation.

Knowledge

_____ is streamlining of production process that do not add benefits that customers are willing to pay for

Lean manufacturing

Packing is part of the

Product strategy

"When a thermometer manufacturer combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of:"

Production

What does the number of airplane workers reveal about creative destruction?

That creative destruction can free up labor for new pursuits

What does the American rose industry reveal about creative destruction?

That even trade can cause creative destruction

"In a Capitalist economy, workers have a strong incentive to innovate."

True

"chewing gum, flashlight batteries sewing needles, and adhesive tape are considered convenience products"

True

Information management involves processing information

True

"In a Socialist or Communist economy, businesses are"

government-owned or nationalized

Cost-push Inflation

inflation that occurs when increases in production costs push up the prices of final goods and services

Which of the following is true about creative destruction?

it can lead to business failure

The process of creative destruction

leads to improvement in products and processes

_____ is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for.

lean manufacturing

Financial managers often shift temporary funds from checking accounts to _____ securities to earn higher interest returns.

marketable

"The _____ is the belief that the firm should dedicate all its planning, policies, operations, and efforts to the satisfaction of the customer."

marketing concept

The ability to manufacture many goods at once is called ______ production

mass

Computer-aided manufacturing (CAM) uses computers to:

develop and control production process

The five P's are product, promotion, price, people, and possession

fasle

There are no significant differences between the consumer market and the business-to-business market

fasle

When a thermometer combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometer, it is an example of:

Production

In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards Mastercard and The Home Depot Business Rewards MasterCard allow consumers and business owners to earn rewards for everyday purchases. The Home Depot is engaged in:

Relationship Marketing

The _____ summarizes an organization's financial status at the end of an accounting period"

balance sheet

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

Raw unorganized facts that can be moved and stored

data

Personal selling, advertising, public relations, and sales promotions are decisions made when the _____strategy

promotion

Personal selling is part of the

promotion strategy

What is Six Sigma?

quality control process

A computer program that copies itself into other software and can spread to other computer systems is called:

a computer virus

"Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country s poor human rights record. However, China is also an inexpensive place to manufacture clothing, and despite its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?"

availability of production inputs

customer satisfaction

refers to customers feeling that a product has met or exceeded expectations

"In seeking a balance between the opportunity for profit and the potential for loss, a financial manager is dealing with the concept of _____ trade-off."

risk-return

Instagram is an example of

the creative side of creative destruction

A product provides customer value if

the market price is below the customer value