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| 1 | |
__________ is used in target costing to reduce product cost by analyzing the trade-offs between different types of product functionality and total product costs. |
| | A) | Life-cycle costs |
| | B) | A flow design |
| | C) | Throughput margin |
| | D) | Takt time |
| | E) | Value engineering |
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| 2 | |
An example of an industry with relatively high downstream costs is: |
| | A) | Computer software. |
| | B) | Medical equipment manufacturing. |
| | C) | Specialized industrial equipment manufacturing. |
| | D) | Fashion apparel manufacturing. |
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| 3 | |
Which one of the following is an upstream cost? |
| | A) | Research and development. |
| | B) | Warrant repair. |
| | C) | Purchasing materials. |
| | D) | Promotion. |
| | E) | Recalls. |
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| 4 | |
Which one of the following is a downstream cost? |
| | A) | research and development. |
| | B) | warranty repair. |
| | C) | purchasing. |
| | D) | prototyping. |
| | E) | testing. |
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| 5 | |
Please fill in the missing component of the equation:
Target cost = Competitive cost – _________ |
| | A) | Desired revenue. |
| | B) | Breakeven point. |
| | C) | Desired profit. |
| | D) | Downstream costs. |
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| 6 | |
The amount of time between receipt of a customer order and the delivery of the product to the customer is called: |
| | A) | Standard time. |
| | B) | Manufacturing cycle time |
| | C) | Setup time |
| | D) | Takt time |
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| 7 | |
The theory of constraints (TOC) emphasizes the improvement of throughput by removing or reducing bottlenecks that slow the rate of: |
| | A) | output. |
| | B) | input. |
| | C) | efficiency. |
| | D) | assembly. |
| | E) | sales. |
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| 8 | |
What is the fourth step in Theory of Constraint Analysis? |
| | A) | Identify the constraint. |
| | B) | Determine the most profitable product mix, given the constraint. |
| | C) | Maximize the flow through the constraint. |
| | D) | Add capacity to the constraint. |
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| 9 | |
__________ is equal to processing time divided by total cycle time. |
| | A) | Cycle time |
| | B) | Manufacturing cycle efficiency (MCE) |
| | C) | Throughput margin |
| | D) | Gross margin |
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| 10 | |
_______________ is a method in which each element of an existing product is examined for its cost and value adding features. |
| | A) | Group technology |
| | B) | Cost tables |
| | C) | Functional analysis |
| | D) | Cost Engineering |
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| 11 | |
Which of the following is not one of the main methods of product design? |
| | A) | Value chain analysis. |
| | B) | Functional Analysis. |
| | C) | Cost Tables. |
| | D) | Value Engineering. |
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| 12 | |
Which stage of the product life cycle is characterized by little competition and slowly increasing sales? |
| | A) | Introduction. |
| | B) | Growth. |
| | C) | Maturity. |
| | D) | Decline. |
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| 13 | |
Generally, a firm competing on differentiation will set a relatively high price at which stage of the products sales life cycle? |
| | A) | Product Introduction |
| | B) | Growth |
| | C) | Maturity |
| | D) | Decline |
| | E) | More in an early stage than in a later stage. |
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| 14 | |
Suppose a firm has the following unit costs (using ABC costing): <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966417/13_14.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (18.0K)</a>]]>
What is the selling price assuming that the company is using life-cycle costs plus a 25 percent markup based on life-cycle costs? |
| | A) | $700.00 |
| | B) | $875.00 |
| | C) | $750.00 |
| | D) | $933.33 |
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| 15 | |
Suppose a firm has the following unit costs (using ABC costing):<![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966417/13_14.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (18.0K)</a>]]>
What is the selling price assuming that the company is using full manufacturing costs and wants a desired gross margin of 40 percent of sales? |
| | A) | $600.00 |
| | B) | $840.00 |
| | C) | $1,000.00 |
| | D) | $933.33 |
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