BUS 140 EXAM 1 STUDY GUIDE 2026/2027 | BUSINESS EXAM
REVIEW AND PRACTICE QUESTIONS
Which is NOT true regarding differences between goods and services?
-Reselling is unusual in services; goods often have some residual value.
-Goods tend to have higher customer interaction than services.
-Services tend to have a more inconsistent product definition than goods.
-Services tend to be more knowledge-based than goods.
-Services are generally produced and consumed simultaneously; tangible goods are not. - Correct
answer✅✅ Goods tend to have higher customer interaction than services.
Which of the following is a similarity between goods and services?
-Both have quality standards.
-mass production
-automation
-consistency
-Both can usually be kept in inventory. - Correct answer✅✅ -Both have quality standards.
Which of the following are among the 10 strategic operations management decisions?
I. design of goods and services
II. managing quality
III. layout strategy
IV. marketing
V. pricing of goods and services - Correct answer✅✅ I, II, III
An operations manager is NOT likely to be involved in:
-the design of goods and services to satisfy customers' wants and -needs.
-the identification of customers' wants and needs.
,-the quality of goods and services to satisfy customers' wants and needs.
-maintenance schedules.
-work scheduling to meet the due dates promised to customers. - Correct answer✅✅ -the
identification of customers' wants and needs.
All of the following decisions fall within the scope of operations management EXCEPT for:
-creating the company income statement.
-location strategy.
-managing quality.
-human resources and job design.
-design of goods and services. - Correct answer✅✅ -creating the company income statement.
Which of the following attributes is most typical of a service?
-tangible
-easy to automate
-production and consumption occur simultaneously
-consistency
-mass production - Correct answer✅✅ -production and consumption occur simultaneously
A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-
hour shift, the productivity of the line is:
-12 covers/hr.
-1200 covers/hr.
-2 covers/hr.
-1.2 covers/hr.
-120 covers/hr. - Correct answer✅✅ -12 covers/hr.
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-
hour shift. If the productivity is increased by 10%, it would then be:
-220 valves/hr.
, -1760 valves/hr.
-880 valves/hr.
-180 valves/hr.
-200 valves/hr. - Correct answer✅✅ -220 valves/hr.
Productivity Definition: Output / Input
Which of the following nets the largest productivity improvement?
-decrease input 15%
-decrease input 10%, increase output 3%
-increase output 10%, decrease input 3%
-increase output 15%
-increase both output and input by 5% - Correct answer✅✅ -decrease input 15%
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand,
they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per
day. What has happened to productivity?
-It has decreased by 9.1%.
-It has increased by 37.5 boxes/hr.
-It has not changed.
-It has decreased by 8.3%.
-It has increased by 20%. - Correct answer✅✅ -It has not changed.
Which of the following is the best example of competing on low-cost leadership?
-A firm's products are introduced into the market faster than its competitors' products are.
-A firm's research and development department generates many ideas for new products.
-A firm offers more reliable products than its competitors do.
-A firm advertises more than its competitors do.
REVIEW AND PRACTICE QUESTIONS
Which is NOT true regarding differences between goods and services?
-Reselling is unusual in services; goods often have some residual value.
-Goods tend to have higher customer interaction than services.
-Services tend to have a more inconsistent product definition than goods.
-Services tend to be more knowledge-based than goods.
-Services are generally produced and consumed simultaneously; tangible goods are not. - Correct
answer✅✅ Goods tend to have higher customer interaction than services.
Which of the following is a similarity between goods and services?
-Both have quality standards.
-mass production
-automation
-consistency
-Both can usually be kept in inventory. - Correct answer✅✅ -Both have quality standards.
Which of the following are among the 10 strategic operations management decisions?
I. design of goods and services
II. managing quality
III. layout strategy
IV. marketing
V. pricing of goods and services - Correct answer✅✅ I, II, III
An operations manager is NOT likely to be involved in:
-the design of goods and services to satisfy customers' wants and -needs.
-the identification of customers' wants and needs.
,-the quality of goods and services to satisfy customers' wants and needs.
-maintenance schedules.
-work scheduling to meet the due dates promised to customers. - Correct answer✅✅ -the
identification of customers' wants and needs.
All of the following decisions fall within the scope of operations management EXCEPT for:
-creating the company income statement.
-location strategy.
-managing quality.
-human resources and job design.
-design of goods and services. - Correct answer✅✅ -creating the company income statement.
Which of the following attributes is most typical of a service?
-tangible
-easy to automate
-production and consumption occur simultaneously
-consistency
-mass production - Correct answer✅✅ -production and consumption occur simultaneously
A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 10-
hour shift, the productivity of the line is:
-12 covers/hr.
-1200 covers/hr.
-2 covers/hr.
-1.2 covers/hr.
-120 covers/hr. - Correct answer✅✅ -12 covers/hr.
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-
hour shift. If the productivity is increased by 10%, it would then be:
-220 valves/hr.
, -1760 valves/hr.
-880 valves/hr.
-180 valves/hr.
-200 valves/hr. - Correct answer✅✅ -220 valves/hr.
Productivity Definition: Output / Input
Which of the following nets the largest productivity improvement?
-decrease input 15%
-decrease input 10%, increase output 3%
-increase output 10%, decrease input 3%
-increase output 15%
-increase both output and input by 5% - Correct answer✅✅ -decrease input 15%
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand,
they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per
day. What has happened to productivity?
-It has decreased by 9.1%.
-It has increased by 37.5 boxes/hr.
-It has not changed.
-It has decreased by 8.3%.
-It has increased by 20%. - Correct answer✅✅ -It has not changed.
Which of the following is the best example of competing on low-cost leadership?
-A firm's products are introduced into the market faster than its competitors' products are.
-A firm's research and development department generates many ideas for new products.
-A firm offers more reliable products than its competitors do.
-A firm advertises more than its competitors do.
