1 | P a g e | © copyright 2024/2025 | Grade A+
Bus 140 SJSU Exam 2 Questions and
Correct Verified Answers Latest
Version
________ is used to rank a company's products to determine which products
represent the best use of the firm's resources, or, perhaps, to determine which
products are to be eliminated.
A) Value analysis
B) Value engineering
C) Financial analysis
D) Product-by-value analysis
E) Product cost justification
✓ D) Product-by-value analysis
Which of the following is true regarding value engineering?
A) Value engineering occurs only after the product is selected and designed.
B) Value engineering creates fragile design.
C) Value engineering is oriented toward improvement of design.
D) Value engineering occurs during production when it is clear the product is
a success.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
E) Value engineering can save substantial amounts of product cost, but
quality suffers.
✓ C) Value engineering is oriented toward improvement of design.
Which of the following typically shows the hierarchy of components, their
description, and the quantity of each required to make one unit of a product?
A) an engineering drawing
B) an assembly drawing
C) a bill of material
D) an assembly chart
E) a route sheet
✓ C) a bill of material
According to PCN analysis, service operations exist only within the area(s) of:
A) independent processing.
B) independent processing and surrogate interaction.
C) independent processing and direct interaction.
D) surrogate interaction and direct interaction.
E) independent processing, surrogate interaction, and direct interaction.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
✓ D) surrogate interaction and direct interaction.
A company is deciding if it should design an advertising system for use on
Twitter©. The first option is to skip out on designing, with no net costs or gains.
The second option is System A, which would result in additional sales of either
$50,000 under good conditions or $10,000 under bad conditions. The final
choice is System B, which would increase sales by $20,000 under both good
and bad conditions. Suppose that good conditions are twice as likely as bad
conditions. Which option should the company pursue if developing a system
costs $25,000?
A) Develop System A
B) Develop System B
C) Do nothing
D) Develop System A and System B
E) Not enough data are given to support a decision
✓ A) Develop System A
The transportation model, when applied to location analysis:
A) minimizes total fixed costs.
B) minimizes total production and transportation costs.
C) minimizes total transportation costs.
Master01 | September, 2024/2025 | Latest update
Bus 140 SJSU Exam 2 Questions and
Correct Verified Answers Latest
Version
________ is used to rank a company's products to determine which products
represent the best use of the firm's resources, or, perhaps, to determine which
products are to be eliminated.
A) Value analysis
B) Value engineering
C) Financial analysis
D) Product-by-value analysis
E) Product cost justification
✓ D) Product-by-value analysis
Which of the following is true regarding value engineering?
A) Value engineering occurs only after the product is selected and designed.
B) Value engineering creates fragile design.
C) Value engineering is oriented toward improvement of design.
D) Value engineering occurs during production when it is clear the product is
a success.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
E) Value engineering can save substantial amounts of product cost, but
quality suffers.
✓ C) Value engineering is oriented toward improvement of design.
Which of the following typically shows the hierarchy of components, their
description, and the quantity of each required to make one unit of a product?
A) an engineering drawing
B) an assembly drawing
C) a bill of material
D) an assembly chart
E) a route sheet
✓ C) a bill of material
According to PCN analysis, service operations exist only within the area(s) of:
A) independent processing.
B) independent processing and surrogate interaction.
C) independent processing and direct interaction.
D) surrogate interaction and direct interaction.
E) independent processing, surrogate interaction, and direct interaction.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
✓ D) surrogate interaction and direct interaction.
A company is deciding if it should design an advertising system for use on
Twitter©. The first option is to skip out on designing, with no net costs or gains.
The second option is System A, which would result in additional sales of either
$50,000 under good conditions or $10,000 under bad conditions. The final
choice is System B, which would increase sales by $20,000 under both good
and bad conditions. Suppose that good conditions are twice as likely as bad
conditions. Which option should the company pursue if developing a system
costs $25,000?
A) Develop System A
B) Develop System B
C) Do nothing
D) Develop System A and System B
E) Not enough data are given to support a decision
✓ A) Develop System A
The transportation model, when applied to location analysis:
A) minimizes total fixed costs.
B) minimizes total production and transportation costs.
C) minimizes total transportation costs.
Master01 | September, 2024/2025 | Latest update
