Business Process Performance MCQs

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Companies that adopt just-in-time purchasing systems often experience






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The benefits of a just-in-time system for raw materials usually include






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Bell Co. changed from a traditional manufacturing philosophy to a just-in-time philosophy. What are the expected effects of this change on Bell’s i...






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Which changes in costs are most conducive to switching from a traditional inventory ordering system to a just-in-time ordering system? Cost per Purc...






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A manufacturing company is attempting to implement a just-in-time (JIT) purchase policy system by negotiating with its primary suppliers to accept lo...






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In Belk Co.’s just-in-time production system, costs per setup were reduced from $28 to $2. In the process of reducing inventory levels, Belk found ...






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The effectiveness of a JIT system is often facilitated by the elimination of some common forms of internal control. The elimination of which internal...






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Just-in-time manufacturing practices are based in part on the belief that






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If a worker encounters a production kanban at his or her workstation, the worker should






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A firm that is deploying just-in-time manufacturing for the first time will






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Which of the following is not a benefit of lean production?






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Which of the following internal controls is not one typically eliminated when a just-in-time inventory system is introduced?






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The physical reconfiguration of equipment that often accompanies the institution of a just-intime manufacturing regime is described as the creation o...






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Which of the following terms is not connected with the employment of just-in-time (JIT) manufacturing?






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Just-in-time production is also called






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Which of the following is not a correct comparison of a just-in-time system with a traditional system? Traditional... Just-in-Time






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A company manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause th...






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Which one of the following is not an expected benefit of implementing a just-in-time (JIT) production system?






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The work cell concept relates to






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Abbott Company is considering implementing a just-in-time system and would like to test the system on its packaging materials purchases. An analysis ...






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In contrast to just-in-time manufacturing, materials requirements planning is a






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Materials requirements planning (MRP) sometimes results in






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The manufacturing concept that relates demand forecasts to specific dates for completion is






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Which of the following is not a typical benefit of an outsourcing arrangement?






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Which of the following is not a goal of materials requirements planning?






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One reason to outsource is so a firm can focus on its






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United Industries manufactures three products at its highly automated factory. The products are very popular, with demand far exceeding the company...






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Three of the basic measurements used by the theory of constraints (TOC) are






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Under throughput costing, the only cost considered to be truly variable in the short run is






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The immediate goal of a theory of constraints (TOC) analysis is to






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Tocon Company produces two components: A-1 and A-2. The unit throughput contribution margins for A-1 and A-2 are $150 and $300, respectively. Each co...






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In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?






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The process model used in a theory of constraints (TOC) analysis is called






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Which pairs of systems are considered complementary because they inherently focus on different time frames? Short-term...Long-term






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The following steps make up the stages of a theory of constraints (TOC) analysis. I. Determine the most profitable product mix given the constraint. ...






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A company uses a planning system that focuses first on the amount and timing of finished goods demanded and then determines the derived demand for raw...






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A company is preparing the sales budget for two potential products. Both products require the use of the same manufacturing equipment, which is only a...






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Assume that a manufacturing firm maintains its product cost accounting records using throughput costing. At the end of the fiscal year,






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When using throughput costing, inventoriable costs would include only






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Bandito Company sells product XRP for $180 per unit. Overhead is allocated based on direct labor hours. Bandito estimates overhead to be $600,000 per...






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Effective cost capacity management






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What is the key strategic issue when a firm is considering capacity expansion?






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Capacity expansion is also referred to as






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Process value analysis is a key component of activity-based management that links product costing and






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A systematic approach to reaching targeted cost levels during value chain analysis is known as






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Gram Co. develops computer programs to meet customers special requirements. How should Gram categorize payments to employees who develop these progr...






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The term referring to the excess of the price of a good over its cost is






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Which of the following is not a component of the value chain?






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The flow of materials and services from their original sources to final consumers is the






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Which of the following is not a phase in a value-chain analysis?






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Which of the following is not an appropriate time measure for use in process analysis?






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An outside consultant has been hired by a manufacturing firm to evaluate each of the firms major products, beginning with the design of the products ...






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Value chain analysis can be described as the process of






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In the value creation chain model, the primary activities include






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Customer relationship management is best defined as






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Customer satisfaction is related to the degree of customer loyalty. High customer loyalty






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The firm should emphasize customer retention






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Value chain analysis can be described as the process of






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Which one of the following best shows the sequence of business functions in the value chain?






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For purposes of cost control, process reengineering is most similar to






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Customer lifetime value for a particular customer is the






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Which of the following is not a type of process?






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Which of the following statements regarding benchmarking is false?






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An example of an internal nonfinancial benchmark is the






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Which of the following statements is false with respect to best practices analysis?






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The four categories of costs associated with product quality costs are






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The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a(n)






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The cost of statistical quality control in a product quality cost system is categorized as a(n)






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Which of the following quality costs are nonconformance costs?






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The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as






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All of the following are examples of benchmarking standards except






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A company implemented a benchmarking program to compare itself to others in the industry. Through this program, the company management team discovere...






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"A manufacturer of high-technology consumer goods incurred the following quality-related expenses last year." Equipment maint...






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A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the follo...






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Which one of the following would be classified as an internal failure cost on a quality cost report?






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"Hill Stand Company is currently performing a cost of quality analysis of its Memphis facilities. The following are costs compiled ...






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Which of the following statements are true with respect to continuous improvement? I. Improvements should be made continuously until the goal is reach...






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Which one of the following is a value-added activity for a company that manufactures bicycles?






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Which one of the following statements about benchmarking is not correct?






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The four factors that derive from a company distinctive competencies and which create competitive advantage are






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The four factors that derive from a company distinctive competencies and which create competitive advantage are






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Which of the following statements is not true about the application of Theory of Constraints to production called the drum-buffer-rope (DBR) system:






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In an attempt to improve operations, companies often go through analyses and redesign of the way processes are performed. Which of the following is ...






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Management of organizations that engage in business process management view business processes as






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At which phase in the business process management lifecycle does management simulate performance of the process in a test environment?






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In the theory of constraints, an operation or resource where the work performed approaches or exceeds the available is referred to as






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Three of the basic measurements used by the Theory of Constraints (TOC) are






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Which statement best describes the objective of the theory of constraints? Throughput contribution . . Investment . . Operating costs






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Which of the following statements about a just-in-time system is/are true?






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Urban Blooms is a company that grows flowering plants and sells them in attractively designed container arrangements to upscale hotels, restaurants a...






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The primary activities or business functions that are considered in the value chain include:






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The most important component of quality control is:






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Of these statements, which is not relevant to the overall benchmarking process?






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The management and employees of a large household goods moving company decided to adopt total quality management (TQM) and continuous improvement (CI...






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Which of the following is not an objective of a company’s TQM program?






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Which of the following is a characteristic of TQM?






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Which of the following statements is/are true?






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The cost of scrap, rework and tooling changes in a product quality cost system are categorized as a(n):






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Listed below are selected line items from the Cost of Quality Report for Watson Products for last month. .tg {border-collapse:collapse;border-spa...