COB 300 Operations Final (Torabi) Test Questions and Answers
QUESTION 1
Operations management primarily involves the:
A. Direction and control of financial assets
B. Management of human resource policies
C. Design, operation, and improvement of production systems
D. Allocation of marketing resources
CORRECT ANSWER: C
RATIONALE: Operations management focuses on how goods and services are produced
efficiently and effectively, emphasizing processes and systems.
QUESTION 2
Which of the following best defines productivity?
A. The ratio of outputs to inputs
B. The total revenue generated per employee
C. The total number of units produced
D. The ratio of labor hours to production time
CORRECT ANSWER: A
RATIONALE: Productivity measures how effectively resources (inputs) are converted into outputs.
QUESTION 3
A key difference between goods and services is that:
A. Services are tangible, goods are intangible
B. Services cannot be stored or inventoried
C. Goods always include customer service
D. Services have no cost of production
CORRECT ANSWER: B
RATIONALE: Services are intangible and consumed as they are produced; thus, they cannot be
stored.
, QUESTION 4
The operations function interacts directly with which two other business functions most
frequently?
A. Finance and human resources
B. Finance and marketing
C. Accounting and R&D
D. Legal and compliance
CORRECT ANSWER: B
RATIONALE: Operations rely on finance for resource allocation and marketing for demand
forecasts.
QUESTION 5
The transformation process in operations converts:
A. Employees into productivity
B. Raw materials into finished goods or services
C. Equipment into output
D. Inputs into investments
CORRECT ANSWER: B
RATIONALE: The core of operations management is transforming inputs (materials, labor,
energy) into finished outputs.
QUESTION 6
Strategic capacity planning seeks to:
A. Match capacity with expected demand over the long term
B. Increase employee motivation
C. Eliminate quality variance
D. Reduce customer dissatisfaction
CORRECT ANSWER: A
RATIONALE: Capacity planning ensures sufficient resources to meet future demand without
excessive idle capacity.
QUESTION 7
QUESTION 1
Operations management primarily involves the:
A. Direction and control of financial assets
B. Management of human resource policies
C. Design, operation, and improvement of production systems
D. Allocation of marketing resources
CORRECT ANSWER: C
RATIONALE: Operations management focuses on how goods and services are produced
efficiently and effectively, emphasizing processes and systems.
QUESTION 2
Which of the following best defines productivity?
A. The ratio of outputs to inputs
B. The total revenue generated per employee
C. The total number of units produced
D. The ratio of labor hours to production time
CORRECT ANSWER: A
RATIONALE: Productivity measures how effectively resources (inputs) are converted into outputs.
QUESTION 3
A key difference between goods and services is that:
A. Services are tangible, goods are intangible
B. Services cannot be stored or inventoried
C. Goods always include customer service
D. Services have no cost of production
CORRECT ANSWER: B
RATIONALE: Services are intangible and consumed as they are produced; thus, they cannot be
stored.
, QUESTION 4
The operations function interacts directly with which two other business functions most
frequently?
A. Finance and human resources
B. Finance and marketing
C. Accounting and R&D
D. Legal and compliance
CORRECT ANSWER: B
RATIONALE: Operations rely on finance for resource allocation and marketing for demand
forecasts.
QUESTION 5
The transformation process in operations converts:
A. Employees into productivity
B. Raw materials into finished goods or services
C. Equipment into output
D. Inputs into investments
CORRECT ANSWER: B
RATIONALE: The core of operations management is transforming inputs (materials, labor,
energy) into finished outputs.
QUESTION 6
Strategic capacity planning seeks to:
A. Match capacity with expected demand over the long term
B. Increase employee motivation
C. Eliminate quality variance
D. Reduce customer dissatisfaction
CORRECT ANSWER: A
RATIONALE: Capacity planning ensures sufficient resources to meet future demand without
excessive idle capacity.
QUESTION 7
