@PROFDOCDIGITALLIBRARIES
TEST BANK
Financial Accounting
Chapter 1
The Operations Function
(ANSWERS AT THE END OF EVERY CHAPTER)
Multiple Choice Questions
SO
1. Why is operations management a more encompassing term than production
management?
A. Operations management is concerned with multiple products and services
B. Operations management refers to service as well as manufacturing organizations
C. Operations management is broader including the financing and marketing functions
LU
D. Operations management makes use of the tools of quantitative analysis and computer
systems
2. Which of the following functions is responsible for the actual movement of goods
TI
and/or services across organizations?
A. Logistics
B. Operations
O
C. Purchasing
D. None of these
N
3. Approximately, what percentage of the American workforce works in service
S
industries?
A. 20%
B. 40%
C. 80%
D. 90%
4. The four decision areas in operations management are:
A. Planning, technology, inventory, and control
B. Process, quality, capacity, and inventory
C. Process, quality, technology, and capacity
D. None of these
,@PROFDOCDIGITALLIBRARIES
5. A productive systems approach:
A. Views operations as a separate organizational function
B. Must provide feedback information for control of process inputs and technology
C. Is of limited use in service organizations
D. Disregards human and social concerns
6. Capacity decisions:
A. Include staffing and scheduling
B. Include inventory control
C. Include defining product specifications
SO
D. None of these
7. Inventory decisions involve:
A. Determining what to order, how much to order, and when to order
LU
B. Tracking the flow of materials
C. Managing the finished goods inventories
D. All of these
TI
8. The contemporary operations themes signify that:
A. More emphasis should be placed on manufacturing than on service industries
B. Every operation should be externally directed to meet the customers' requirements
O
C. Operations decisions should precede decisions in other functions in an organization
D. To be competitive, strategies for operations should exclude broader supply chain issues
N
9. The essence of operations management can be described by:
S
A. Process, capacity, and people
B. Decisions, function, and process
C. Planning, control, and organization
D. Integrated planning and control
,@PROFDOCDIGITALLIBRARIES
10. Which of the following is not a contemporary theme in operations?
A. Globalization of Operations
B. Lean Operations
C. Quality Teams
D. Environmental Concerns and Sustainability
11. The three primary functions that exist in most business organizations are:
A. Operations, accounting, and finance
B. Operations, production, and finance
C. Production, marketing, and human resources
SO
D. Operations, finance, and marketing
12. The three major functions of business organizations:
A. Are mutually exclusive
LU
B. Function independently of each other
C. Interface with each other
D. Do not interface with each other
TI
13. Which one of the following would not generally be classified as an input in a
university system?
A. Staff
O
B. Facilities
C. Knowledge
D. Research
N
S
14. The four major decision responsibilities of operations management are:
A. Process, quality, capacity, and human resources
B. Process, quality, human resources, and inventory
C. Quality, inventory, human resources, and capacity
D. Process, capacity, quality, and inventory
, @PROFDOCDIGITALLIBRARIES
15. Which of the following is not in the process category of the operations decision
framework?
A. Layout of the facility
B. Job design
C. The type of equipment and technology
D. Product or service inspection
16. Supply chain management includes the integration of:
A. Suppliers
B. Manufacturers
C. Customers
SO
D. All of the above
17. The supply chain extends from:
A. Supplier to manufacturing
LU
B. Supplier to supplier
C. Dealer to customer
D. Supplier to customer
TI
18. Supply chain management includes all of the following except:
A. Purchasing
B. Inventory control
O
C. Advertising
D. Customer service
N
19. A comprehensive decision-making framework for operations includes:
S
A. Consideration of other organizational functions
B. Consideration of operations in isolation of other functions
C. Suppliers but not customers
D. Customers but not suppliers
TEST BANK
Financial Accounting
Chapter 1
The Operations Function
(ANSWERS AT THE END OF EVERY CHAPTER)
Multiple Choice Questions
SO
1. Why is operations management a more encompassing term than production
management?
A. Operations management is concerned with multiple products and services
B. Operations management refers to service as well as manufacturing organizations
C. Operations management is broader including the financing and marketing functions
LU
D. Operations management makes use of the tools of quantitative analysis and computer
systems
2. Which of the following functions is responsible for the actual movement of goods
TI
and/or services across organizations?
A. Logistics
B. Operations
O
C. Purchasing
D. None of these
N
3. Approximately, what percentage of the American workforce works in service
S
industries?
A. 20%
B. 40%
C. 80%
D. 90%
4. The four decision areas in operations management are:
A. Planning, technology, inventory, and control
B. Process, quality, capacity, and inventory
C. Process, quality, technology, and capacity
D. None of these
,@PROFDOCDIGITALLIBRARIES
5. A productive systems approach:
A. Views operations as a separate organizational function
B. Must provide feedback information for control of process inputs and technology
C. Is of limited use in service organizations
D. Disregards human and social concerns
6. Capacity decisions:
A. Include staffing and scheduling
B. Include inventory control
C. Include defining product specifications
SO
D. None of these
7. Inventory decisions involve:
A. Determining what to order, how much to order, and when to order
LU
B. Tracking the flow of materials
C. Managing the finished goods inventories
D. All of these
TI
8. The contemporary operations themes signify that:
A. More emphasis should be placed on manufacturing than on service industries
B. Every operation should be externally directed to meet the customers' requirements
O
C. Operations decisions should precede decisions in other functions in an organization
D. To be competitive, strategies for operations should exclude broader supply chain issues
N
9. The essence of operations management can be described by:
S
A. Process, capacity, and people
B. Decisions, function, and process
C. Planning, control, and organization
D. Integrated planning and control
,@PROFDOCDIGITALLIBRARIES
10. Which of the following is not a contemporary theme in operations?
A. Globalization of Operations
B. Lean Operations
C. Quality Teams
D. Environmental Concerns and Sustainability
11. The three primary functions that exist in most business organizations are:
A. Operations, accounting, and finance
B. Operations, production, and finance
C. Production, marketing, and human resources
SO
D. Operations, finance, and marketing
12. The three major functions of business organizations:
A. Are mutually exclusive
LU
B. Function independently of each other
C. Interface with each other
D. Do not interface with each other
TI
13. Which one of the following would not generally be classified as an input in a
university system?
A. Staff
O
B. Facilities
C. Knowledge
D. Research
N
S
14. The four major decision responsibilities of operations management are:
A. Process, quality, capacity, and human resources
B. Process, quality, human resources, and inventory
C. Quality, inventory, human resources, and capacity
D. Process, capacity, quality, and inventory
, @PROFDOCDIGITALLIBRARIES
15. Which of the following is not in the process category of the operations decision
framework?
A. Layout of the facility
B. Job design
C. The type of equipment and technology
D. Product or service inspection
16. Supply chain management includes the integration of:
A. Suppliers
B. Manufacturers
C. Customers
SO
D. All of the above
17. The supply chain extends from:
A. Supplier to manufacturing
LU
B. Supplier to supplier
C. Dealer to customer
D. Supplier to customer
TI
18. Supply chain management includes all of the following except:
A. Purchasing
B. Inventory control
O
C. Advertising
D. Customer service
N
19. A comprehensive decision-making framework for operations includes:
S
A. Consideration of other organizational functions
B. Consideration of operations in isolation of other functions
C. Suppliers but not customers
D. Customers but not suppliers
