MGMT 300 Exam 2 Practice Questions

Vehicles, furniture, and dishwashers are examples of nondurable goods.

A) True

B) False

B) False

Which of the following is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information?

A) Variant

B) Process

C) Matrix

D) Task

B) Process

Which of the following is a valid difference between goods and services?

A) The demand for goods cannot be predicted, whereas the demand for services can be easily predicted.

B) Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard technology.

C) Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.

D) Customers directly participate in goods-producing activities, whereas customers do not participate in service-providing activities.

C) Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.

Mikayla is planning to go on a camping trip. She purchases a bottle of mineral water, a pack of biscuits, a small tube of toothpaste, and a toothbrush from the supermarket near her house. The items that Mikayla has purchased from the supermarket are what type of good?

A) Nondurable

B) Hard

C) Durable

D) Intangible

A) Nondurable

A warm welcome by an employee at a hotel check-in counter is an example of

A) predictive analytics.

B) social sustainability.

C) a moment of truth.

D) a service blueprint.

C) a moment of truth.

What type of management is defined as the science and art of ensuring that goods and services are created and delivered successfully to customers?

A) Security

B) Network

C) Operations

D) Communications

C) Operations

Which of these is a benefit of globalization from the perspective of the organization moving operations to other countries?

A) Number of new markets

B) Different cultures

C) Number of languages

D) Number of competitors

A) Number of new markets

In the context of customer benefit packages, which services are those that are not essential to the primary service but enhance it?

A) Central

B) Peripheral

C) Tertiary

D) Core

B) Peripheral

Hilaria was the manager of the student success center in the College of Business at a metropolitan university. There were specific times each year when her advising staff was overwhelmed with students needing degree checks and advice on next semester’s classes. Even working weekends would not permit all students wanting an appointment to obtain one. Which OM skill could Hilaria draw upon to help with this issue?

A) Scheduling and capacity

B) Inventory management

C) Planning and budgeting

D) Quality

A) Scheduling and capacity

Caleb monitored the levels of office supplies, books, cocktail napkins, and tiny umbrellas in his role. Running out of any of these items could be catastrophic, and it was vital that he stretch his budget to last an entire semester. Which OM skill does he use for these concerns?

A) Process design

B) Quality

C) Scheduling

D) Inventory management

D) Inventory management

When considering the value of a loyal customer, it costs three to five times more to keep an existing customer than to acquire a new customer.

A) True

B) False

B) False

What term describes the ability to provide goods and services to customers with minimum waste and maximum utilization of resources?

A) Reliability

B) Sustainability

C) Volume flexibility

D) Operational efficiency

D) Operational efficiency

Key measures of innovation and learning include

A) percentage of new products developed.

B) supply-chain performance.

C) processing time.

D) the variance around the average time.

A) percentage of new products developed.

What is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities?

A) Forecasting

B) Fulfillment

C) Measurement

D) Litigating

C) Measurement

The university deftly moved to online classes when Covid-19 hit its campus, thereby demonstrating what ability when faced with such an unpredictable and adverse occurrence?

A) Reliability

B) Assurance

C) Resilience

D) Innovation and learning

C) Resilience

What measures the degree to which the output of a process meets customer requirements?

A) Quality

B) Variability

C) Innovation

D) Learning

A) Quality

Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders?

A) The internal perspective

B) The financial perspective

C) The learning perspective

D) The customer perspective

B) The financial perspective

A barbershop tracks its customers through all stages of its process. Which of these process steps represents queue time?

A) The customer enters the barbershop and watches SportsCenter until the next barber is ready.

B) The barber executes the haircut.

C) The customer instructs the barber on how short their hair should be cut.

D) The customer pays for their haircut.

A) The customer enters the barbershop and watches SportsCenter until the next barber is ready.

Which of the following refers to acquiring capabilities toward distribution, or even customers?

A) Contract manufacturing

B) Outsourcing

C) Forward integration

D) Backward integration

C) Forward integration

Which of the following is an advantage of pull systems?

A) They reduce transportation costs.

B) They are efficient even when schedules are missed.

C) They minimize inventory and production costs.

D) They forecast changes in customer demand.

C) They minimize inventory and production costs.

Fourlotts Corp. provides integrated services that include storing manufactured goods, packaging, and delivering it to the dealers or customers. Given this information, Fourlotts Corp. is most likely a

A) supplier.

B) distribution center.

C) contract manufacturer.

D) third-party logistics provider.

D) third-party logistics provider.

Greyon Suits, a company that specializes in making hand-made suits, moved its sourcing and operations from Lumeria back to its home country. This led to easier management and decreased carbon footprint. In this case, Greyon Suits is involved in

A) insourcing.

B) offshoring.

C) reshoring.

D) outsourcing.

C) reshoring.

In the context of sourcing, multiple suppliers

A) often provide economies of scale.

B) often provide the ability to form close partnerships.

C) lower the risk of supply disruption.

D) lower the chances of using a push or pull system.

C) lower the risk of supply disruption.

The process of having suppliers provide goods and services that were previously provided internally is known as

A) backward integration.

B) insourcing.

C) outsourcing.

D) forward integration.

C) outsourcing.

Which of the following statements is true of outsourcing decisions?

A) The simplest outsourcing decision is a single supplier versus multiple suppliers.

B) Break-even analysis can be used to provide insight into outsourcing decisions.

C) If a company decides to make a part in-house, it does not incur any fixed costs.

D) If a company outsources its work to external supplier, the variable cost per unit will be low.

B) Break-even analysis can be used to provide insight into outsourcing decisions.

A difference between efficient supply chains and responsive supply chains is that responsive supply chains

A) seek to balance capacity and demand, resulting in low levels of inventory.

B) seek to minimize cost of routing products from factory to customers.

C) focus on flexibility and responsive service.

D) focus on maximizing efficiencies in process flow.

C) focus on flexibility and responsive service.

What does Zara do to ensure that it does not supply more of an item than it can sell at any one location?

A) It initially sends only a few orders for new styles to any single location.

B) It uses reverse logistics to return goods and repurpose materials and fasteners into the next wave of designs.

C) It budgets 50% of revenue on omnichannel marketing campaigns.

D) It forecasts consumer demand and produces no more than 50% of its sales forecast.

A) It initially sends only a few orders for new styles to any single location.