SCM - FINAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
What makes an iceberg dangerous?
a. Decisions are made based on what you can see
b. It is challenging to know the iceberg's exact shape and size
c. You can't confront an iceberg without facing the facts and using the numbers to
navigate
d. All of the above - All of the above
Given the following information, is purchasing performing well in buying iron
castings?
a. Fantastic job (i.e. you deserve a promotion)
b. Terrible job (i.e. you deserve to get fired)
c. Good job (i.e. you can keep job and you'll likely earn a bonus)
d. Mediocre job (i.e. you will likely keep job but you won't receive bonus)
e. You give up. You have no clue. - Mediocre job (i.e. you will likely keep job
but you won't receive bonus)
What is labor + material + overhead equal to?
,a. Return on investment
b. Asset turnover ratio
c. Inventory turnover ratio
d. Price
e. Cost of goods sold - Cost of goods sold
Which of the following is not true about a supplier cost breakdown?
a. Labor and material costs can vary across suppliers
b. Markup (which determines profit) is a percent of price
c. SGA is often calculated as a percent of factory cost
d. Overhead is often calculated as a percent of labor
e. All of the above are true - b. Markup (which determines profit) is a
percent of price
Given the following scenario, what is the percent of manufacturing overhead the
supplier is including in the selling price?
A supplier sells a spare part for $75 per unit. The net profit and selling, general,
and administrative expense are a total of 15% of the selling price. Direct material
costs are 20% of the selling price, and the ratio of direct material costs to direct
labor costs is 1.20 (for every dollar of materials, it is 1.20 dollars in labor).
a. 20%
b. 15%
c. 120%
,d. 41%
e. None of the above - 41%
Using reverse analysis, what is the estimated cost (sum of labor, material and
overhead) for this supplier to produce these chemicals?
A supplier gives you a price of $400 for a barrel of specialized chemicals. Included
in this price is a per barrel set up charge of (tooling) $40.50. The industry they are
part of operates at 10% profit and 5% SGA; both profit and SGA are a percentage
of the selling price.
a. $299.50
b. $340.00
c. $360.00
d. $400.00
e. None of the above - $299.50
What is cost analysis used to do?
a. Assess only price
b. Gain insight into individual cost elements
c. Determine the cost of labor d. Practice negotiations
e. All of the above - Gain insight into individual cost elements
Based on the cost breakdown analysis described in this chapter, if labor costs
increase, which of the following will also increase?
, a. SGA will increase
b. Factory cost will increase
c. Manufacturing overhead will increase
d. Price will potentially increase e. All of the above will increase - All of the
above will increase
Which of the following is not a component of total cost that occurs during the
transaction (i.e., acquisition) phase?
a. Disposal
b. Tariffs/duties
c. Price
d. Return of parts
e. All are a component that occur during the transaction stage - Disposal
Which of the following is a pre-transaction component of total cost?
a. Price
b. Order placement
c. Investigating and qualifying sources
d. Field failures 3
e. None of the above - Investigating and qualifying sources
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
What makes an iceberg dangerous?
a. Decisions are made based on what you can see
b. It is challenging to know the iceberg's exact shape and size
c. You can't confront an iceberg without facing the facts and using the numbers to
navigate
d. All of the above - All of the above
Given the following information, is purchasing performing well in buying iron
castings?
a. Fantastic job (i.e. you deserve a promotion)
b. Terrible job (i.e. you deserve to get fired)
c. Good job (i.e. you can keep job and you'll likely earn a bonus)
d. Mediocre job (i.e. you will likely keep job but you won't receive bonus)
e. You give up. You have no clue. - Mediocre job (i.e. you will likely keep job
but you won't receive bonus)
What is labor + material + overhead equal to?
,a. Return on investment
b. Asset turnover ratio
c. Inventory turnover ratio
d. Price
e. Cost of goods sold - Cost of goods sold
Which of the following is not true about a supplier cost breakdown?
a. Labor and material costs can vary across suppliers
b. Markup (which determines profit) is a percent of price
c. SGA is often calculated as a percent of factory cost
d. Overhead is often calculated as a percent of labor
e. All of the above are true - b. Markup (which determines profit) is a
percent of price
Given the following scenario, what is the percent of manufacturing overhead the
supplier is including in the selling price?
A supplier sells a spare part for $75 per unit. The net profit and selling, general,
and administrative expense are a total of 15% of the selling price. Direct material
costs are 20% of the selling price, and the ratio of direct material costs to direct
labor costs is 1.20 (for every dollar of materials, it is 1.20 dollars in labor).
a. 20%
b. 15%
c. 120%
,d. 41%
e. None of the above - 41%
Using reverse analysis, what is the estimated cost (sum of labor, material and
overhead) for this supplier to produce these chemicals?
A supplier gives you a price of $400 for a barrel of specialized chemicals. Included
in this price is a per barrel set up charge of (tooling) $40.50. The industry they are
part of operates at 10% profit and 5% SGA; both profit and SGA are a percentage
of the selling price.
a. $299.50
b. $340.00
c. $360.00
d. $400.00
e. None of the above - $299.50
What is cost analysis used to do?
a. Assess only price
b. Gain insight into individual cost elements
c. Determine the cost of labor d. Practice negotiations
e. All of the above - Gain insight into individual cost elements
Based on the cost breakdown analysis described in this chapter, if labor costs
increase, which of the following will also increase?
, a. SGA will increase
b. Factory cost will increase
c. Manufacturing overhead will increase
d. Price will potentially increase e. All of the above will increase - All of the
above will increase
Which of the following is not a component of total cost that occurs during the
transaction (i.e., acquisition) phase?
a. Disposal
b. Tariffs/duties
c. Price
d. Return of parts
e. All are a component that occur during the transaction stage - Disposal
Which of the following is a pre-transaction component of total cost?
a. Price
b. Order placement
c. Investigating and qualifying sources
d. Field failures 3
e. None of the above - Investigating and qualifying sources
