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1-26 (Chapters 11-15) Review

Total questions: 27

Worksheet time: 20mins

Name
Class
Date
1.

Which of the following is not one of the common assumptions typically used in break-even analysis?

a)

Fixed costs are never considered

b)

Fixed costs remain constant over the period and volumes considered

c)

Variable costs fluctuate in a linear fashion

d)

Revenues vary directly with volume

2.

​In should-cost modeling, _____ refers to the integrity and transparency of the cost model created.

a)

Value stream maps

b)

​Make-or-buy analysis

c)

Fixed cost

d)

Auditability

3.

​_____ is defined as the present value of all costs associated with a product, service, or capital equipment that are incurred over its expected life.

a)

Cash flow analysis

b)

Revenue pricing

c)

Competition pricing

d)

Spending Analysis

4.

A/An _____ is defined as the cost of the next best alternative.

a)

Operating cost

b)

Net present value

c)

Usage cost

d)

Opportunity cost

5.

Which of the following is not one of the important factors to consider when building a TCO model?

a)

Focus on the small and easily measurable costs first

b)

​Building a TCO can be a costly and time-intensive activity

c)

Work in a team

d)

​Make sure to obtain senior management buy-in before embarking on a full-fledged TCO.

6.

The _____ (in time) through a PERT network is the _____.​

a)

Longest path...critical path

b)

Shortest path….critical path

c)

Longest path….slack

d)

Shortest path….slack

7.

According to Ohno and Toyota, _____ is a category of waste that produces items for which there are no orders.​

a)

Excess inventory

b)

Overproduction

c)

Waiting time

d)

Defect

8.

_____ actions and resources are those that create value for the customer.

a)

Non-value-adding

b)

Necessary non-value-adding

c)

Value-adding

d)

Extras

9.

_____ actions and resources are everything done in the process, which contribute no value to the customer, but which they are forced to pay for when they buy the product or service.​

a)

Value-adding

b)

Necessary non-value-adding

c)

Waiting time

d)

Non-value-adding

10.

A negotiator’s _____ can be defined as his or her opening offer, which represents the optimistic (or ideal) value of the issue being negotiated.

a)

Interest

b)

Need

c)

BATNA

d)

Position

11.

Which of the following is not a reason for negotiating with suppliers?​

a)

The total contract value or volume is large

b)

The purchase is for widely available, commodity-like goods

c)

​The purchase involves utilization of capital-intensive plant and equipment

d)

The supplier will perform important or significant value-added activities

12.

A _____ is a movement away from a negotiating position that offers something of value to the other party in order to ultimately gain something else of value.​

a)

Reward

b)

Tactic

c)

Concession

d)

Strategy

13.

​Step 1 of Triangle Talk is _____.

a)

Know exactly what they want

b)

Propose action in a way they can accept

c)

Know exactly what you want

d)

Apply tactics to win the negotiation

14.

Step 2 of Triangle Talk is _____.​

a)

Apply strategy to win the negotiation​

b)

Know exactly what they want

c)

Know exactly what you want

d)

Propose action in a way they can accept

15.

Step 3 of Triangle Talk is _____.​

a)

Apply tactics to win the negotiation

b)

Know exactly what you want

c)

Use power to get what you want

d)

Propose action in a way they can accept

16.

_____ means that two or more parties are competing over a fixed sum value with the winner taking all or the larger share.​

a)

Lose-lose negotiation

b)

Win-lose negotiation

c)

Winner-take-all negotiation

d)

Integrative bargaining

17.

_____ seeks to expand the value or resources of outcomes available to all parties through cooperative negotiation.

a)

Win-win negotiation

b)

Distributive bargaining

c)

Competitive bargaining

d)

Lose-lose negotiation

18.

The _____ clause of a contract defines all of the important terms contained within the contract and is important so everyone understands exactly what each term means.

a)

Supply and delivery

b)

Definitions

c)

Force majeure

d)

Scope of agreement

19.

The ____ clause of a contract defines what is in and out of scope, which might include the geographical limitations, the validity or invalidity of prior contracts, preferential treatment by the supplier, or other elements.

a)

Force majeure

b)

Supply and delivery

c)

Scope of agreement

d)

Liability

20.

The _____ clause of a contract generally specifies who is responsible if there are injuries or damage, over the course of the contract, and any damages to be paid.

a)

Key performance indicators and compensation

b)

Definitions

c)

Free trade areas

d)

Liability

21.

The _____ clause of a contract describes the course of events that occur if there are unforeseen calamities such as earthquakes or hurricanes that prevent a supplier from fulfilling its obligations to the buyer.

a)

Liability

b)

Force majeure

c)

Confidentiality

d)

Third-party rights

22.

​The _____ clause of a contract specifies conditions regarding who own any IP rights that comes out of the agreement, and who owns what IP going into the agreement.

a)

Liability

b)

Technology improvements

c)

Intellectual property

d)

Assignment and contracting

23.

The _____ clause in a contract ensures that all information, technology, and so on shared between the parties remains confidential and is not shared with other customers or suppliers.

a)

Assignment and contracting

b)

Liability

c)

Third-party rights

d)

Confidentiality

24.

​_____ essentially determines the nature of agreements that are enforceable and create legal rights between the parties.

a)

Agency law

b)

Contract law

c)

Civil law

d)

Litigation

25.

_____ deals with the role of managers as individual representatives acting on behalf of their organizations.

a)

Contract law

b)

Civil law

c)

Mediation

d)

Agency law

26.

​_____ is defined as that body of the law that refers to how business firms (parties) enter into contracts with each other, execute contracts, and remedy problems that arise in the process.

a)

Agency law

b)

Commercial law

c)

All of the above

d)

None of the above

27.

The _____ clause in a contract ensures that all information, technology, and so on shared between the parties remains confidential and is not shared with other customers or suppliers.

a)

Assignment and contracting

b)

Liability

c)

Third-party rights

d)

Confidentiality