BUS402 Week 9 Quiz 2017 - $20.49   Add to cart

Exam (elaborations)

BUS402 Week 9 Quiz 2017

Question 1 2 out of 2 points ________ is one of the elements of the total inventory costs. A) Demand B) Set-up costs C) Standing costs D) Safety stock Question 2 2 out of 2 points "F.O.B. seller" means that: A) title passes to the buyer when the seller delivers the goods to the buyer. B) risk of loss transfers to the buyer when the seller delivers the goods to the carrier. C) the seller pays all shipping and transportation costs. D) the buyer has both title and risk of loss as soon as the goods are paid for, regardless of their physical location. Question 3 2 out of 2 points The primary objective of the purchasing function is to: A) ensure an adequate turnover of merchandise. B) acquire enough stock to ensure uninterrupted sales or production. C) determine the "best" possible price for both supplies and finished products. D) maximize carrying and set-up costs for the firm. Question 4 2 out of 2 points Which of the following represents the cost of the units in the basic EOQ model? A) Q/2 × H B) D × C C) D/Q × S D) (L × U) S Question 5 2 out of 2 points When shopping for a vendor, a small business owner should seek: A) the best transfer of risk possible. B) the lowest price. C) the best price at acceptable quality. D) to change vendors often in order to get the lowest price. Question 6 2 out of 2 points The reorder point model requires that the small business owner know: A) the usage rate, the minimum level of stock, the lead time, and the EOQ. B) who the supplier is, statistical process controls, and TQM. C) the demand pattern for the product, reliability and proximity of the supplier, and who has title. D) holding costs for the product, the usage rate, and the three "Cs" of the product. Question 7 2 out of 2 points Many small businesses build a(n) ________, or cushion, into their inventories in case demand runs ahead of the anticipated usage rate. A) safety stock B) lead time C) EOQ D) stockout point Question 8 2 out of 2 points Holding or carrying costs include the costs of: A) ordering materials and inventory. B) receiving and inspecting items and all administrative costs. C) insurance, taxes, depreciation, etc. D) processing a purchase order. Question 9 2 out of 2 points The heart of TQM is: Customer satisfaction Question 10 2 out of 2 points A key element to Deming's 14 Points is: A) ordering on the basis of price. B) changing suppliers frequently. C) conducting frequent quality inspections. D) developing long-term relationships with vendors Question 11 2 out of 2 points Research on the implementation of TQM programs shows that it takes ________ to completely implement a TQM program. A) three to four years B) eight to ten years C) six months to two years D) one to three years Question 12 2 out of 2 points The small business gains what advantage by selling on consignment? A) Shorter lead time when reordering than with standard contracts B) Better customer service C) Not bearing the risk of loss for the consigned goods D) Receiving absolute title to the goods prior to paying for them Question 13 2 out of 2 points "F.O.B. buyer" means that: A) title passes to the buyer when the seller delivers the goods to the buyer. B) risk of loss transfers to the buyer when the seller delivers the goods to the carrier. C) the seller pays all shipping and transportation costs. D) the buyer has both title and risk of loss as soon as the goods are paid for, regardless of their physical location. Question 14 0 out of 2 points Small business people need to remember that: A) there is an implicit cost of forgoing a cash discount. B) they should avoid cash discounts. C) by forgoing cash discounts they have more money for daily expenses. D) cash discounts have hidden annual interest rates. Question 15 2 out of 2 points The implementation of TQM cannot succeed unless: A) the company is willing to undergo immediate radical transformation of all of its processes. B) the company has extensive market research on its markets, competitors, and customers. C) it is fully supported by upper management and has the involvement of the CEO. D) the lowest level of employees is willing to implement the program from the very beginning. Question 16 2 out of 2 points ________ system enables business owners to track their inventories and to place orders with vendors quickly and with few errors by linking them to their vendors electronically. A) Electronic Data Processing (EDP) B) Electronic Fund Processing (EFP) C) Cloud-based systems D) Enterprise Resource Planning (ERP) Question 17 2 out of 2 points Employers can reduce employee theft through: A) careful screening of employees during hiring. B) only hiring relatives and the friends of current employees. C) the use of metal detectors and random strip searches of employees. D) searching employees' lockers and cars during work hours. Question 18 2 out of 2 points Store owners and employees may apprehend and charge a shoplifter: A) merely on the suspicion that they have stolen something. B) if the individual puts something in their bag or pocket without paying for it but hasn't left the store. C) only if the theft amounts to more than $25. D) only if they see the theft and can prove the merchandise belongs to the store and wasn't paid for. Question 19 2 out of 2 points "Just-In-Time" inventory control techniques are most successful in what type of environment? A) Repetitive manufacturing operations where inventory levels are significant at the outset B) Where product requirements are customized for each customer C) Where a company changes suppliers regularly and those suppliers are independent of the manufacturer D) Where inventory levels have been reduced to safety stock levels Question 20 2 out of 2 points A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is: A) CRM. B) TQM. C) efficient consumer response. D) JIT II. Question 21 2 out of 2 points The two-bin system and the tag system of inventory control are best suited for items classified as ________ in ABC analysis. A) "A" items B) perishable items C) "C" items D) "B" items Question 22 2 out of 2 points The ________ shoplifter is often a regular customer, well-respected individual, etc. A) juvenile B) kleptomaniac C) professional D) impulse Question 23 2 out of 2 points Most employee theft: A) involves values in excess of $1,000. B) is expensive merchandise. C) is small amounts of cash. D) is the equivalent of nickel and dime items. Question 24 2 out of 2 points The purpose of ABC inventory analysis is: A) to help retail stores control their inventories to prevent shoplifting and employee theft. B) to save time by only inventorying those items that produce the majority of a firm's sales. C) to focus inventory control efforts on items that account for the majority of sales. D) a system to facilitate the computerization of a firm's perpetual inventory system. Question 25 2 out of 2 points A number of organizational factors encourage employee theft including: A) being permitted to manage their own work and time schedules. B) working with one-of-a-kind items the employee could never afford to buy. C) having too elaborate of financial and inventory controls in place. D) a low probability of getting caught. Question 26 2 out of 2 points Which of the following is a part of the "Just-In-Time" inventory control philosophy? The lower the level of inventory manufacturer maintains, the more efficient is the production system Question 27 2 out of 2 points Effective management of inventory begins with: A) developing an accurate sales forecast. B) setting realistic inventory turnover objectives. C) determining what level of safety stock to maintain. D) establishing purchasing procedures. Question 28 2 out of 2 points In ABC analysis, the dollar usage value of an item is determined by: A) its price per unit times its shrinkage rate. B) a statistical application of the 80/20 rule. C) POS systems. D) its cost per unit and its sales volume. Question 29 2 out of 2 points A retail version of Just-In-Time inventory control is called: A) EDI. B) TQM. C) efficient consumer response. D) JIT II. Question 30 2 out of 2 points ________ inventory systems are designed to maintain a running count of the items in inventory. A) Partial B) Physical C) Perpetual D) ABC

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