Quizz on PART1 SEC B

All of the following correctly describes an example of following the focus strategy except:

• A company invests in automated manufacturing equipment to enable it to produce a product that appeals to a particular industry segment only.

• A company sends all its employees to training to improve their skills to enable it to produce a product that appeals to a particular industry segment only.

• A company sends all its employees to training to improve their skills to enable it to produce a product with features not available in competitors’ products.

• A company drops products in all industry segments but one.

Wishing-Well Inc., a chain of small convenience stores in Atlanta, Georgia, has just opened a store in a rapidly developing suburb to the north of the city. The marketing manager of Wishing-Well believes that the suburb is a lucrative market, as the area has several expensive homes and offices but does not have any other convenience stores or supermarkets. Which of the following is likely to neutralize the opportunity offered by the new market?

• Wishing-Well is well known for its unique offerings of local produce and organic food.

• Abundant retail space is available for low rates in the suburb.

• Wishing-Well has a popular rewards program for its regular customers.

• The suburb has well-regarded public and private schools

How does a multiple linear regression equation differ from a simple linear regression equation?

• More than one independent variable is used to predict a dependent variable in a multiple linear regression equation but only one independent variable is used to predict a dependent variable in a simple linear regression equation.

• More than one dependent variable is predicted by a multiple linear regression equation but only one dependent variable is predicted in a simple linear regression equation.

• A multiple linear regression is likely to be less accurate than a simple linear regression model.

• A multiple linear regression is likely to be less difficult to interpret than a simple linear regression model.

Which of the following is not a limitation of learning curve analysis?

• Learning curve analysis assumes that the percentage improvement from learning only fully occurs when production doubles.

• Learning curve analysis can only be used to predict performance that is within the range of data used to develop the analysis.

• Learning curve analysis cannot be used when it is difficult to accurately measure the impact of efficiency improvements.

• Learning curve analysis assumes all improvements in production efficiency are caused by employee learning.

A company uses participative budgeting. In order to more easily meet budgetary goals, the controller underestimates the amount of revenue and overestimates fixed selling and administrative expenses. This is an example of

• flexible budgeting.

• zero-based budgeting.

• budgetary slack.

• budgetary variance.

Joan K. is a manager with Steel Works Inc. Joan would love to beat the budget this year. She believes that revenues for the coming year will be $200,000 and expenses will be $120,000. To build in budgetary slack, Joan is least likely to budget for which of the following?

• $70,000 of income

• $130,000 of expenses

• $110,000 of expenses

• $190,000 of revenue

Connie G. is a manager with Bricks and More Company. Connie receives a bonus based on beating the budget. For the coming year, Connie believes revenues will be $250,000 and expenses will be $140,000. To build in budgetary slack, Connie will most likely budget for which of the following?

• $130,000 of expenses

• $150,000 of expenses

• $260,000 of revenue

• $120,000 of income

A firm has budgeted sales for Period 1 of 50,000 units and Period 2 of 55,000 units. The firm maintains a policy that ending inventory is 20% of the following period's forecasted sales. The policy is currently met. What is the budgeted production for Period 1?

• 49,000 units.

• 51,000 units.

• 50,000 units.

• 61,000 units.

Sports Enthusiasts manufactures skateboards. During May, June, and July, Sports Enthusiasts budgets for sales and production of 12,300 skateboards, 10,800 skateboards, and 9,700 skateboards, respectively. Each skateboard requires 4 wheels. The company requires an ending inventory of wheels equal to 20% of the following month's production needs. How many wheels does Sports Enthusiasts need to purchase in June?

• 42,320 wheels

• 34,560 wheels

• 43,200 wheels

• 50,960 wheels

A company implements a new process to manufacture its product and uses 100 hours to complete one unit. It expects that the new process will be subject to an 80% learning curve. If the company assumes the learning curve will follow the cumulative average-time learning model, how many total hours will be needed to produce the third and fourth batches?

• 256 hours

• 64 hours

• 160 hours

• 96 hours