BA 101 Midterm 2

Technological changes have had such a great impact on the ______ that this segment of the American economy will likely never employ as many people as it did in the 1950s

Manufacturing Industry

______ is the creation of finished goods and services using land, labor, capital, entrepreneurship, and knowledge

Production

What are *two* goals of operations management?

To keep operations running efficiently and to create a good experience for the customer

List the steps in the production process:

Inputs, Production Control, Outputs

Mass production focuses on producing ______

A limited variety of products

Which sector has lost more jobs due to technological changes?

Manufacturing

True or false: Computers are used to design products when CAD is employed.

True

Using factors like land, labor, and capital to create goods and services is referred to as ______

Production

What is the goal of operations management in service industries?

To provide good experiences for those who use the service

Choose the correct order of steps in the production process.

Inputs + Production Control + Outputs

Using machines that are designed to do multiple tasks in order to produce a variety of products is called ______

Flexible manufacturing

The type of production that does not concern itself with customer preferences, but instead focuses on making a large number of a few products is called ______ production

Mass

Which acronym refers to the use of computers to *design* products?

CAD

______ manufacturing refers to the production of goods using less of everything

Lean

The creation of finished goods and services using the factors land, labor, capital, entrepreneurship, and knowledge is:

Production

When you make a unique product or provide a specific service to specific individuals, you are performing which process?

Customization

True or false: Using machines designed to do multiple tasks so they can produce a variety of products is called computer-aided design.

False

Industrial robots have completely changed manufacturing because they:

Improve productivity, can work 24/7 with great precision

Mass production focuses on producing ______

A limited variety of products

What are *two* characteristics of lean manufacturing?

Less time and less resources

An additive manufacturing process that creates a product one layer at a time using a nozzle similar to those in inkjet printers is ______

3D printing

When a computerized data control ______ detects a problem, it notifies someone to make needed changes

Sensor

Ordering a new suit that will be made specifically for you by a tailor is an example of which process?

Customization

______ ______planning helps to solve issues related to facility layout, facility location, and inventory control

Operations management

Which technology has greatly improved productivity while also reducing the number of jobs available to humans?

Robotics

What strategy focuses on a company deciding where to locate its operations?

Facility location

The main idea behind mass production is to produce a large number of a limited variety of products ______

At a very low cost

If a company has a goal of ______, it might choose to locate its facilities in an area that has access to major highways, ports, railways, and airports

Reducing time to market

3D printing is a production process also known as ______manufacturing

Additive

Uses of sensors to control manufacturing processes include:

Measuring humidity, measuring the thickness of a material, etc.

Examples of a problem solved by operations management planning as it relates to manufacturing include:

Facility location and inventory control

The process of ______ is significant because, once the decision has been made and implemented, the firm must live with it due to the high costs of moving

Facility location

For which reasons might a company choose to spend millions of dollars to move its facility from one location to another?

To reduce time to market, to lower costs of obtaining resources, and to be closer to a pool of qualified employees

Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):

Inter-firm process

Because of ______ ______, more flexibility in choice of business location has increased while allowing firms to remain competitive

Information technology

The physical arrangement of resources in the production process refers to ______

Facility layout

MRP is a computer based operations management system that uses ______ to make sure that needed parts and materials are available at the right time and place

Sales forecasts

In his job, Manuel finds the highest quality material resources, the best suppliers, and then negotiates the best prices. Manuel works in the ______ department

Purchasing

Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the Internet, thus developing a(n) ______ approach to operations management

Interfirm

The ______ ______ ______ inventory method is designed to keep a minimum of parts, supplies, and other materials on hand just in time to go on the assembly line

Just-in-time

Choosing facility location has become more flexible for both companies and employees through the use of ______ ______ such as texting, teleconferencing, cell phones, and email

Information technology

Arrangement of resources, including people, to most efficiently produce goods and services is referred to as ______ layout

Facility

In order to be a quality organization, a firm must ______

Consistently produce what the customer wants

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place is referred to as ______

MRP

Which term describes the act of buying of all materials needed by the organization?

Purchasing

The purpose of the Malcolm Baldrige National Quality Award is that it sets a(n) 

______ for overall company quality using several key areas for measurement

Standard

The basic premise of just-in-time inventory is ______

Minimum inventory is kept on hand

True or false: ISO is a governmental body.

False

Because of ______, more flexibility in choice of business location has increased while allowing firms to remain competitive

Information technology

The role of the operations manager is to ensure products are delivered:

On time, on budget, and to specifications

Maintaining ______ refers to consistently producing what the customer wants while reducing errors before and after delivery to the customer

Quality

Tremendous opportunities exist for careers in operations management due to ______

Increased competition

MRP is a computer based operations management system that uses ______ to make sure that needed parts and materials are available at the right time and place

Sales forecast

Overall company quality is outlined by the standards set by the ______ National Quality Award

Malcom Baldrige

ISO is a worldwide nongovernmental federation of national ______ bodies.

Standards

A manager responsible for producing products, and delivering them on time, on budget, and to specifications is likely a(n) ______ manager

Operations

True or False: Students who can recognize future trends know that there are few opportunities for careers in operations management

False

______ is the monetary value of what a company received for goods sold, services rendered, and all other payments to the firm

Rent

If financial management is the heartbeat of competitive businesses, what keeps that heartbeat stable?

Accounting information

Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of ______ helps managers make good decisions about the firm's operations

Accounting

The first step in the accounting cycle is to ______

Analyze source documents

An advantage of the use of computers to maintain and compile accounting information is ______

Speed

What is the term for the monetary value of all resources that come into the firm from operating activities?

Revenue

A summary of all the financial transactions that have occurred over a particular period is referred to as a ______

Financial statement

What is considered to be the "language of business"?

Accounting

The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the ______ equation

Accounting

Which *three* activities are part of the function of accounting?

Interpreting, recording, and classifying financial transactions

Assets, liabilities, and owners' equity are the major accounts listed on ______

A balance sheet

Which are steps in the accounting cycle?

Analyze transactions, prepare a trial balance, record transaction in the journal

What are some benefits of using computers for accounting purposes?

Information can be posted from journals instantaneously, It frees accountants' time for more important tasks, Software can help if no strong accounting personnel is available

Because they indicate a firm's financial health and stability, the use of ______ are key factors in management decision making

Financial statements

Items of value owned by a firm are called ______

Assets

Which three components make up the fundamental accounting equation?

Assets, liabilities, owners equity

In accounting, liabilities refer to ______

Debts a business owes to others

What are the three major categories on the balance sheet?

Assets, owners equity, liabilities

What is the correct order of the Accounting Cycle?

__**Analyze**__ source documents, __**Record**__ transactions in journals, __**Transfer**__ journal entries to a ledger, Take a __**trial**__ balance, __**Prepare**__ financial statements, __**Analyze**__ financial statements

Which financial statement shows a firm's bottom line—its profit (or loss) after costs, expenses, and taxes for a specific period?

Income statement

What term describes the cost of merchandise the firm sells?

Cost of Goods Sold

On a balance sheet, assets may include ______

Tangible or intangible resources, goodwill

The debt a firm owes to others is called a(n) ______

Liability

In operating a business, rent, salaries, supplies, utilities and insurance are all examples of ______

Operating expenses

The major categories of the balance sheet are assets, liabilities, and ______

Owners equity

Net income or loss is:

All revenue minus all expenses and taxes

The ______ statement summarizes profit (or loss), costs, and expenses over a specific period, which may be a week, a month, or a year

Income

The statement of cash flows reports cash receipts and disbursements related to ______, investments, and financing

Operations

The formula for the costs of goods sold is ______

Purchase Price + Freight Charges + Storage Costs

______ are economic resources owned by a firm

Assets

Cash flow analysis is especially important for which of the following?

Small businesses

Operating expenses include which of the following?

Rent, utilities, supplies

What are four main types of financial ratios used in ratio analysis?

Debt, Activity, Liquidity, Profitability

True or false: Gross profit is what a company shows on their income statement as the bottom line figure

False______ ratios measure a company's ability to turn assets into cash to pay its short-term debt

______ ratios measure a company's ability to turn assets into cash to pay its short-term debt

Liquidity

Cash receipts and disbursements related to operations, investments, and financing are reported on the ______

Statement of Cash Flows

The statement of cash flows is a financial statement that shows ______

Cash receipts and disbursements

What type of ratios measure the degree to which a firm relies on borrowed funds in its operations?

LeverageIt's possible for a business to increase its sales and profits yet still suffer ______ flow problems

It's possible for a business to increase its sales and profits yet still suffer ______ flow problems

Cash

Return on equity is net income minus taxes divided by ______

Total owners’ equity

The assessment of a firm's financial condition and performance through calculations and interpretation of financial ratios developed from the firm's financial statements is called ______ analysis

Ratio

What type of ratio measures a company's ability to turn assets into cash to pay its short-term debts?

Liquidity

Since converting the firm's inventory to profits is a key function of management, firms use ______ to measure the effectiveness of management in utilizing the assets that are available

Activity ratios