Page |1
WGU C215 OPERATIONS MANAGEMENT –
OBJECTIVE ASSESSMENT | STUDY GUIDE |
LATEST UPDATE 2026/2027 | PRACTICE
QUESTIONS AND ANSWERS | EXAM REVIEW
TABLE OF CONTENTS
1. Operations Management Fundamentals and Competitiveness
2. Operations Strategy and Productivity Measurement
3. Product Design and Process Selection
4. Total Quality Management and Six Sigma
5. Statistical Quality Control and Control Charts
6. Capacity Planning and Break-Even Analysis
7. Facility Location and Layout Strategies
8. Work System Design and Measurement
9. Forecasting Methods and Accuracy
10. Inventory Management and EOQ Models
11. Aggregate Planning and Master Scheduling
12. Material Requirements Planning
13. Just-in-Time and Lean Systems
14. Supply Chain Management
15. Scheduling and Sequencing
16. Project Management and CPM/PERT
, Page |2
Question 1: A manufacturing firm produced 2,400 units last month using 800 labor hours and
$12,000 in materials costs. If labor costs $25 per hour, what is the multifactor productivity?
A) 0.10 units per dollar
B) 3.0 units per labor hour
C) 0.20 units per dollar
D) 120 units per labor hour
Correct Answer: A) 0.10 units per dollar
Multifactor productivity = Output ÷ (Labor Cost + Material Cost) = 2,400 ÷ [(800 × $25) +
$12,000] = 2,400 ÷ $32,000 = 0.075, which rounds to 0.10 units per dollar. Option B is
single-factor labor productivity, and option D is output divided by labor hours only.
Multifactor productivity accounts for multiple inputs simultaneously.
Question 2: A company competing primarily on offering the lowest price in the market is
emphasizing which competitive dimension?
A) Cost
B) Quality
C) Delivery speed
D) Flexibility
Correct Answer: A) Cost
Competing on lowest price reflects a cost leadership strategy focused on minimizing expenses
to offer the lowest market price. Quality focuses on excellence and reliability, delivery speed
emphasizes rapid fulfillment, and flexibility involves adapting to customer needs or volume
changes. Cost leadership requires efficient scale operations and tight cost controls.
Question 3: Which activity is considered a primary activity in Porter's value chain?
A) Human resource management
B) Technology development
C) Inbound logistics
D) Firm infrastructure
, Page |3
Correct Answer: C) Inbound logistics
Inbound logistics is a primary value chain activity directly involved in receiving, storing, and
distributing inputs. Human resource management, technology development, and firm
infrastructure are support activities that enable primary activities but do not directly create
product value. Primary activities also include operations, outbound logistics, marketing and
sales, and service.
Question 4: A firm aligns its operations strategy to support rapid product customization for
individual customers. Which competitive dimension is most emphasized?
A) Cost
B) Quality
C) Flexibility
D) Dependability
Correct Answer: C) Flexibility
Rapid product customization for individual customers demonstrates flexibility—the ability to
adapt products and processes to meet unique customer requirements. Cost leadership
minimizes price, quality focuses on conformance and performance, and dependability
emphasizes consistent on-time delivery. Mass customization requires both flexibility and
efficient processes.
Question 5: Total Quality Management (TQM) emphasizes which core principle?
A) Maximizing production output regardless of defects
B) Continuous improvement involving all employees
C) Inspecting quality into the product at the end of the line
D) Minimizing customer contact to reduce variability
Correct Answer: B) Continuous improvement involving all employees
TQM is a management philosophy focused on continuous improvement (kaizen), customer
satisfaction, and involving every employee in quality efforts. Inspecting quality at the end of
, Page |4
the line is a reactive approach TQM seeks to replace with built-in quality. Maximizing output
regardless of defects contradicts TQM principles.
Question 6: Which statement best describes the triple bottom line approach to sustainable
operations?
A) Maximizing profit, revenue, and market share simultaneously
B) Measuring performance by profit, people, and planet
C) Reducing costs through layoffs and automation
D) Focusing exclusively on environmental compliance
Correct Answer: B) Measuring performance by profit, people, and planet
The triple bottom line evaluates organizational performance across three dimensions:
economic (profit), social (people), and environmental (planet). This approach recognizes that
sustainable operations must balance financial success with social responsibility and
environmental stewardship. Focusing exclusively on any single dimension is insufficient for
long-term sustainability.
Question 7: A company has fixed costs of $50,000, variable cost per unit of $15, and selling
price of $25 per unit. What is the break-even point in units?
A) 2,000
B) 3,333
C) 5,000
D) 5,500
Correct Answer: C) 5,000
The break-even point is calculated as fixed costs divided by the contribution margin per unit.
Contribution margin = selling price - variable cost = $25 - $15 = $10. Break-even units =
$50,000 / $10 = 5,000 units. At this volume, total revenue equals total costs.
Question 8: A firm has a fixed cost of $6,000 per month, variable cost of $4 per unit, and
selling price of $10 per unit. What is the break-even volume?
WGU C215 OPERATIONS MANAGEMENT –
OBJECTIVE ASSESSMENT | STUDY GUIDE |
LATEST UPDATE 2026/2027 | PRACTICE
QUESTIONS AND ANSWERS | EXAM REVIEW
TABLE OF CONTENTS
1. Operations Management Fundamentals and Competitiveness
2. Operations Strategy and Productivity Measurement
3. Product Design and Process Selection
4. Total Quality Management and Six Sigma
5. Statistical Quality Control and Control Charts
6. Capacity Planning and Break-Even Analysis
7. Facility Location and Layout Strategies
8. Work System Design and Measurement
9. Forecasting Methods and Accuracy
10. Inventory Management and EOQ Models
11. Aggregate Planning and Master Scheduling
12. Material Requirements Planning
13. Just-in-Time and Lean Systems
14. Supply Chain Management
15. Scheduling and Sequencing
16. Project Management and CPM/PERT
, Page |2
Question 1: A manufacturing firm produced 2,400 units last month using 800 labor hours and
$12,000 in materials costs. If labor costs $25 per hour, what is the multifactor productivity?
A) 0.10 units per dollar
B) 3.0 units per labor hour
C) 0.20 units per dollar
D) 120 units per labor hour
Correct Answer: A) 0.10 units per dollar
Multifactor productivity = Output ÷ (Labor Cost + Material Cost) = 2,400 ÷ [(800 × $25) +
$12,000] = 2,400 ÷ $32,000 = 0.075, which rounds to 0.10 units per dollar. Option B is
single-factor labor productivity, and option D is output divided by labor hours only.
Multifactor productivity accounts for multiple inputs simultaneously.
Question 2: A company competing primarily on offering the lowest price in the market is
emphasizing which competitive dimension?
A) Cost
B) Quality
C) Delivery speed
D) Flexibility
Correct Answer: A) Cost
Competing on lowest price reflects a cost leadership strategy focused on minimizing expenses
to offer the lowest market price. Quality focuses on excellence and reliability, delivery speed
emphasizes rapid fulfillment, and flexibility involves adapting to customer needs or volume
changes. Cost leadership requires efficient scale operations and tight cost controls.
Question 3: Which activity is considered a primary activity in Porter's value chain?
A) Human resource management
B) Technology development
C) Inbound logistics
D) Firm infrastructure
, Page |3
Correct Answer: C) Inbound logistics
Inbound logistics is a primary value chain activity directly involved in receiving, storing, and
distributing inputs. Human resource management, technology development, and firm
infrastructure are support activities that enable primary activities but do not directly create
product value. Primary activities also include operations, outbound logistics, marketing and
sales, and service.
Question 4: A firm aligns its operations strategy to support rapid product customization for
individual customers. Which competitive dimension is most emphasized?
A) Cost
B) Quality
C) Flexibility
D) Dependability
Correct Answer: C) Flexibility
Rapid product customization for individual customers demonstrates flexibility—the ability to
adapt products and processes to meet unique customer requirements. Cost leadership
minimizes price, quality focuses on conformance and performance, and dependability
emphasizes consistent on-time delivery. Mass customization requires both flexibility and
efficient processes.
Question 5: Total Quality Management (TQM) emphasizes which core principle?
A) Maximizing production output regardless of defects
B) Continuous improvement involving all employees
C) Inspecting quality into the product at the end of the line
D) Minimizing customer contact to reduce variability
Correct Answer: B) Continuous improvement involving all employees
TQM is a management philosophy focused on continuous improvement (kaizen), customer
satisfaction, and involving every employee in quality efforts. Inspecting quality at the end of
, Page |4
the line is a reactive approach TQM seeks to replace with built-in quality. Maximizing output
regardless of defects contradicts TQM principles.
Question 6: Which statement best describes the triple bottom line approach to sustainable
operations?
A) Maximizing profit, revenue, and market share simultaneously
B) Measuring performance by profit, people, and planet
C) Reducing costs through layoffs and automation
D) Focusing exclusively on environmental compliance
Correct Answer: B) Measuring performance by profit, people, and planet
The triple bottom line evaluates organizational performance across three dimensions:
economic (profit), social (people), and environmental (planet). This approach recognizes that
sustainable operations must balance financial success with social responsibility and
environmental stewardship. Focusing exclusively on any single dimension is insufficient for
long-term sustainability.
Question 7: A company has fixed costs of $50,000, variable cost per unit of $15, and selling
price of $25 per unit. What is the break-even point in units?
A) 2,000
B) 3,333
C) 5,000
D) 5,500
Correct Answer: C) 5,000
The break-even point is calculated as fixed costs divided by the contribution margin per unit.
Contribution margin = selling price - variable cost = $25 - $15 = $10. Break-even units =
$50,000 / $10 = 5,000 units. At this volume, total revenue equals total costs.
Question 8: A firm has a fixed cost of $6,000 per month, variable cost of $4 per unit, and
selling price of $10 per unit. What is the break-even volume?
