Management Exam

An insurance company insures athletes who have multimillion-dollar contracts and pays them a sum of money when they are injured or unable to play. Athletes buy the insurance policies as a way to protect themselves. The insurance company's decision to specialize in this type of insurance addresses their decision regarding ____.

. product-service mix

A factory produces 100,000 units of its product with 10 hours of direct labor. Which of the following accurately represents the factory's labor productivity index?

10,000

Which of the following control systems is most likely to be highly effective?

A control system that provides information as often as is necessary

Yui runs a manufacturing facility that produces seat belts for the automotive industry. She finds that she occasionally has too much of some parts, and not enough of others, and is considering implementing a just-in-time inventory management system. What would be an advantage of Yui adopting a JIT inventory management method?

Costs tied up in raw material inventory would be transferred backwards in the supply chain

Which of the following is a characteristic of effective control?

It provides timely information

Which of the following is true of the return ratio?

It shows managers and investors the earnings an organization is generating relative to its assets

How does productivity affect the standard of living for a country when goods are exported?

Money from the exports is brought back to the country

Which of the following is a potential disadvantage of using a budget?

The budget can be applied too rigidly

Why should an organization carefully consider the use of a CIM system before buying one?

They can increase the breakeven point for firms

Why are financial budgets considered to be critically important to an organization?

They indicate where resources will be coming from and how they will be used

Managers at Sparky's Auto Parts decided to broaden their product line beyond spark plugs. They decided what level of sales they wanted for each product for each of the next five years. How has Sparky's linked their control system?

by integrating it with planning

Bhavik has established a timetable for comparing performance to standards. What should he keep in mind when he sets the timetable?

complexity of the work

Many large organizations use ____ to help line managers with activities and coordinate overall systems by gathering and assimilating relevant information.

controllers

The first step in the control process is ____

establishing control standards

During the 1970s in the United States, manufacturing entered a long period of decline. Which of the following is the primary reason for this decline?

foreign competition

Which of the following is indicated by total factor productivity?

how well an organization uses all of its resources

A(n) ____ budget is simply a budget expressed in terms such as units of output, hours of direct labor, machine hours, or square-foot allocations

nonmonetary

. If an energy company wants to discover the effectiveness of its wind-turbine division in a particular state, it will use a(n) ____.

operating ratio

Rather than relying on hundreds of suppliers, RDC Corp. has recently reduced its number of suppliers and negotiated several special production delivery arrangements. This reflects changes in RDC's ____.

purchasing management

Before submitting a final policy memo, analysts may modify certain recommendations based on feedback from experts and the general public. This is an example of ____ control.

screening

Which of the following directly led to the big move to automate factories after World War II

shortage of skilled workers

Eagle Inc. surveyed users so see if its latest products lived up to expectations and if the users encountered any problems when using the product. At the same time, Eagle tracked how many products were rejected by inspectors when they came off the assembly line as well as how many products were returned because of defects. This scenario illustrates an aspect of ____ controls.

operations

Azures Airlines operates international flights and offers all business-class services. The customers feel that the prices of Azures' flights are similar to other airlines, but seats are more comfortable and service is better. This quality of Azures is an example of ____.

perceived quality

Hermes is a taxi service that asks customers to fill out an online feedback form once their ride is complete. Hermes is making use of ____ operations control.

postaction

Intertek's product quality inspections on finished goods indicates the defect rate. If the rate exceeds a certain level, the production manager is alerted and a process is implemented to identify and eliminate the causes. This is an example of ____ control.

postaction

In a toy manufacturing factory, the employees are stationed along the assembly line. As a toy moves along the assembly line, each employee stationed in their position, adds a particular part to the toy. The toy factory has a ____ layout.

product

A convenience store at the gas station provides utility for customers because it makes it easy for them to purchase a few essentials when they stop for gasoline. The convenience store belongs to the ____ industry

service

Rabeya developed a line of gluten- and dairy-free power bars that is gaining the attention of healthminded consumers. Brand awareness is growing rapidly. Future sales growth will depend on rapid expansion into new locations and through new types of sales channels. The extent to which Rabeya is able to meet these expansion goals should be regulated through which control measures?

strategic

Serviceability is the dimension of quality that refers to ____.

the speed and ease of repair

Even though internal audits are more expensive than external audits, many employers do them. What is the advantage to an internal audit?

to identify significant aspects of accounting systems, other than technical correctness