Chapter 1 – Goods, Services, and Operations Management
Multiple Choice
1. The three issues that are at the core of operations management include all of
the following EXCEPT _____.
a.
cost
b.
quality
c.
tangibility
d.
efficiency
ANS: C
2. Which of the following key activities is NOT performed by operations managers?
a. Purchasing
b. Cost accounting
c. Forecasting
d. Service encounter design
ANS: B
3. An operations manager is expected to perform several key activities EXCEPT:
a.
coordinating the acquisition of materials, supplies, and services.
b.
determining when resources should be assigned to work.
c.
managing cash flow and strategic investments.
d.
making use of technology to improve productivity.
ANS: C
4. Which of the following statements is NOT true of goods and services?
Service encounters can be between a customer and a service provider.
Services cannot be stored as inventory for future sale.
A shoe is a durable good that provides a service.
Normally, patents do not protect services.
ANS: C
5. Computer software is an example of a _____.
a.
tangible product
b.
nondurable good
c.
service
d.
value creation process
ANS: B
6. Identify the statement about goods and services that is NOT true?
a.
,Services that do not involve significant interaction with customers can be managed
much the same as goods in a factory.
b.
A service is any primary or complementary activity that does not directly produce a
physical product.
c.
Some very significant differences exist between goods and services that create
different demands on the operations function.
d.
Designing and managing operations in a goods-producing firm is quite similar to
that in a service-providing organization.
ANS: D
7. Which of the following statements about goods and services is TRUE?
a.
The demand for services is independent of time.
b.
A durable good is a product that typically lasts for less than three years.
c.
A good example of a nondurable good is furniture.
d.
A service encounter can consist of one or more moments of truth.
ANS: D
8. Identify a FALSE statement about goods and services.
a.
Service encounters can be between a customer and a service provider.
b.
The demand for services is time-dependent, especially over the short term.
c.
There is no way to recapture the lost revenue from a hotel room.
d.
A moment of truth is a feature a customer recognizes, pays for, or uses.
ANS: D
9. Which of the following jobs requires the most service management skills and
knowledge?
a.
Airplane mechanic
b.
Usher at sports stadium
c.
Restaurant cook
d.
Airline Flight attendant
ANS: D
10. Which of the following statements about goods and services is FALSE?
a. Service encounters can be between a customer and a service provider.
b. Demand for physical goods is more difficult to predict than demand for services.
c. Services cannot be stored as physical inventory for future sale.
d. Normally, patents do not protect services.
ANS: B
,11. Which of the following statements is NOT true regarding the differences between
goods and services?
a. Demand for services is easier to forecast.
b. Customers participate in many services.
c. Services cannot be stored as physical inventory.
d. Patents do not protect service processes.
ANS: A
12. Which of the following statements about goods and services is FALSE?
a. Service encounters are interactions between customers and service providers.
b. Services can be stored as physical inventory for future sale.
c. Goods are tangible, while services are intangible.d. The demand for service is
more difficult to predict than the demand for goods.
ANS: B
13. Service management skills include all of the following EXCEPT _____.
a.
accounting and finance
b.
knowledge and technical expertise about operations
c.
marketing and cross-selling skills
d.
human interaction skills
ANS: A
14. Which of the following statements is TRUE of service facilities?
a.
They are in close proximity to customers.
b.
They rely on physical inventory.
c.
They take advantage of patents.
d.
They are located close to raw materials, suppliers, and labor.
ANS: A
15. Which of the following statements is TRUE of goods and services?
a.
A variant is always a durable good with new features.
b.
An automobile is a nondurable good.
c.
Demand for goods is more difficult to predict than demand for services.
d.
Normally, patents do not protect services.
ANS: D
16. A customer benefit package (CBP) includes _____.
a.
only core offerings
b.
only peripheral offerings
c.
, either core or peripheral offerings but not both
d.
both core offerings as well as peripheral offerings
ANS: D
17. Which one of the following statements is TRUE regarding a customer benefit
package (CBP)?
a.
A CBP consists of a primary good and a primary service coupled together.
b.
A variant is a CBP feature that strictly adheres to the standard CBP.
c.
The size of the circles in the CBP framework can signify the relative importance of
each good and service.
d.
When defining a CBP, the features determined by management accurately describe
customers’ wants and needs.
ANS: C
18. Which of the following has the highest goods content?
a.
Buying furniture
b.
Computer repair service
c.
Automobile loans
d.
Symphony performance
ANS: A
19. Which one of the following has the lowest goods content?
a.
Automobile muffler replacement
b.
Computer diagnosis and repair
c.
Movie presentation
d.
Fast-food restaurant
ANS: C
20. Which of the following is lowest in goods content and highest in service
content?
a.
Dining at a fast-food restaurant
b.
Attending a theater production
c.
Getting an oil change for your car
d.
Filling a medical prescription
ANS: B
21. In relating operations management and the customer benefit package (CBP), which
Multiple Choice
1. The three issues that are at the core of operations management include all of
the following EXCEPT _____.
a.
cost
b.
quality
c.
tangibility
d.
efficiency
ANS: C
2. Which of the following key activities is NOT performed by operations managers?
a. Purchasing
b. Cost accounting
c. Forecasting
d. Service encounter design
ANS: B
3. An operations manager is expected to perform several key activities EXCEPT:
a.
coordinating the acquisition of materials, supplies, and services.
b.
determining when resources should be assigned to work.
c.
managing cash flow and strategic investments.
d.
making use of technology to improve productivity.
ANS: C
4. Which of the following statements is NOT true of goods and services?
Service encounters can be between a customer and a service provider.
Services cannot be stored as inventory for future sale.
A shoe is a durable good that provides a service.
Normally, patents do not protect services.
ANS: C
5. Computer software is an example of a _____.
a.
tangible product
b.
nondurable good
c.
service
d.
value creation process
ANS: B
6. Identify the statement about goods and services that is NOT true?
a.
,Services that do not involve significant interaction with customers can be managed
much the same as goods in a factory.
b.
A service is any primary or complementary activity that does not directly produce a
physical product.
c.
Some very significant differences exist between goods and services that create
different demands on the operations function.
d.
Designing and managing operations in a goods-producing firm is quite similar to
that in a service-providing organization.
ANS: D
7. Which of the following statements about goods and services is TRUE?
a.
The demand for services is independent of time.
b.
A durable good is a product that typically lasts for less than three years.
c.
A good example of a nondurable good is furniture.
d.
A service encounter can consist of one or more moments of truth.
ANS: D
8. Identify a FALSE statement about goods and services.
a.
Service encounters can be between a customer and a service provider.
b.
The demand for services is time-dependent, especially over the short term.
c.
There is no way to recapture the lost revenue from a hotel room.
d.
A moment of truth is a feature a customer recognizes, pays for, or uses.
ANS: D
9. Which of the following jobs requires the most service management skills and
knowledge?
a.
Airplane mechanic
b.
Usher at sports stadium
c.
Restaurant cook
d.
Airline Flight attendant
ANS: D
10. Which of the following statements about goods and services is FALSE?
a. Service encounters can be between a customer and a service provider.
b. Demand for physical goods is more difficult to predict than demand for services.
c. Services cannot be stored as physical inventory for future sale.
d. Normally, patents do not protect services.
ANS: B
,11. Which of the following statements is NOT true regarding the differences between
goods and services?
a. Demand for services is easier to forecast.
b. Customers participate in many services.
c. Services cannot be stored as physical inventory.
d. Patents do not protect service processes.
ANS: A
12. Which of the following statements about goods and services is FALSE?
a. Service encounters are interactions between customers and service providers.
b. Services can be stored as physical inventory for future sale.
c. Goods are tangible, while services are intangible.d. The demand for service is
more difficult to predict than the demand for goods.
ANS: B
13. Service management skills include all of the following EXCEPT _____.
a.
accounting and finance
b.
knowledge and technical expertise about operations
c.
marketing and cross-selling skills
d.
human interaction skills
ANS: A
14. Which of the following statements is TRUE of service facilities?
a.
They are in close proximity to customers.
b.
They rely on physical inventory.
c.
They take advantage of patents.
d.
They are located close to raw materials, suppliers, and labor.
ANS: A
15. Which of the following statements is TRUE of goods and services?
a.
A variant is always a durable good with new features.
b.
An automobile is a nondurable good.
c.
Demand for goods is more difficult to predict than demand for services.
d.
Normally, patents do not protect services.
ANS: D
16. A customer benefit package (CBP) includes _____.
a.
only core offerings
b.
only peripheral offerings
c.
, either core or peripheral offerings but not both
d.
both core offerings as well as peripheral offerings
ANS: D
17. Which one of the following statements is TRUE regarding a customer benefit
package (CBP)?
a.
A CBP consists of a primary good and a primary service coupled together.
b.
A variant is a CBP feature that strictly adheres to the standard CBP.
c.
The size of the circles in the CBP framework can signify the relative importance of
each good and service.
d.
When defining a CBP, the features determined by management accurately describe
customers’ wants and needs.
ANS: C
18. Which of the following has the highest goods content?
a.
Buying furniture
b.
Computer repair service
c.
Automobile loans
d.
Symphony performance
ANS: A
19. Which one of the following has the lowest goods content?
a.
Automobile muffler replacement
b.
Computer diagnosis and repair
c.
Movie presentation
d.
Fast-food restaurant
ANS: C
20. Which of the following is lowest in goods content and highest in service
content?
a.
Dining at a fast-food restaurant
b.
Attending a theater production
c.
Getting an oil change for your car
d.
Filling a medical prescription
ANS: B
21. In relating operations management and the customer benefit package (CBP), which
