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WorksheetsOperation Mgmt
Total questions: 25
Worksheet time: 13mins
Which of the followings statements is correct?
The level of production is the total number of good produced per worker
productivity can be measured by output per worker in a given time period
increasing production leads to increased productivity
reducing productivity per worker will increase the number of workers
One of the benefits of increasing productivity is ...
more workers will be employed
total production will increase with the same number of workers
average cost will remain the same
fewer raw materials will be needed to produce the same level of output
Labor productivity could be increased by all of the following except...
using more technologically advanced machines
increasing the amount of automation
improved training of workers
employing more workers to produce the same level of output
Which of the following is the best definition of 'an increase in efficiency'
higher output levels than last year
lower total costs of production
fewer workers employed but output level remains the same
10% more workers employed and output also rises by 10%
A clothing manufacturer is most likely to hold the following stocks except:
materials used in the clothing products
partly finished goods called 'work in progress'
finished clothing waiting to be sold
spare machines in case of a breakdown
For a supermarket, one of the advantages of holding high inventories of existing products is
low costs of financing the level of inventory
being able to respond quickly if consumer tastes change
being able to meet unexpected increases in demand
being able to put unused space to other uses
in which type of production are single specialist units produced?
flow production
batch production
job production
lean production
in which type of production are several identical products completed at each stage before passing on to the next stage
flow
batch
job
lean
which of the following is a claimed advantage of flow production?
each worker enjoys doing one repetitive job all the time
making a few specialist products allows all consumer needs to be met
the capital cost of setting up a production line are usually quite low
the mass production helps to keep costs per unit low
Which one of the following is usually a necessary condition for flow production?
large numbers of specialist workers
high and steady demand for a standardized product
simple machinery that could be quickly adapted for other products if demand fell
high demand for the product only at certain times of the year
Which of the following products is most likely to be produced using batch production methods?
school uniforms
washing machines
popular chocolate bar
hand-made watches
A possible disadvantage of flow production is ...
average costs of production are high because output is low
workers may be demotivated due to lack of job variety
higher output means that all of the products will not be sold
productivity levels are often low
which one of the following would be an example of lean production?
producing a greater variety of goods with an increased workforce
holding very low stock levels such as with Just-in-time management
making smaller quantities of good than previously
buying the latest equipment to increase output even through it is not used all the time
A firm purchases the latest technology machinery and it requires fewer workers to operate it. One of the likely consequences of this decision is..
the fixed costs of the business will fail
the workers may object to these changes
there will be no training costs involved
efficiency in the business will fail
which of the following costs is most likely to be variable for a fast food restaurant?
the salary of the manager
the rent of the restaurant
the cost of food supplies
costs will tell the the machinery used to cook the food
the best definition of variable cost is
they vary with the number of units produced
they vary over time
they vary with the prices charged by suppliers
they vary with tax rates set by the government
if variable cost are $3 per unit, then the total variable costs for producing 3500 units will be
$3500
$35,000
$1050
$10500
the best definition of fixed costs are those that do not vary with ...
time
season
output
number of workers
the total costs of a business are equal to ..
the profit made
variable costs plus added value
quantity of units produced multiplied by the average cost of producing eachunit
quantity of units sold multiplied by the selling price
which of the following is the best definition of economies of scale
costs fall as output increases
costs per unit fall as the firm expands
average costs rise as the firm expands
fixed costs fall as output increases
the break-even level of output is that number of units at which...
profit is at its highest level
variable costs equals revenue
total costs equal total revenue
variable costs equals fixed costs
A high quality product means
the product will never go wrong
customers will always be able to reuse the product
the product meets customers high expectations
the product is made from the highest quality materials
quality control in a factory is usually achieved by ..
testing all completed products
testing a sample of completed products
asking customers to check quality
testing materials as they arrive at the factory but not the finished product
quality assurance means
checking all finished products for faults
setting quality standards for all stages of production
assuring customers that products are of the highest standard
assuring workers that the work they do is a high quality
one main difference between quality control methods and quality assurance is
quality control is based on finished product inspection but quality assurance involves workers at each stage of production
quality assurance guarantees no faulty products, quality control only tests samplees
quality assurance standards cannot be set in tertiary sector businesses but quality control can
workers are more involved in quality control than in quality assurance
