APICS Exam 1 Questions With Complete Solutions.
Inventory is the of Supply Chain - CORRECT ANSWER-life blood
AInventory Turns equation - CORRECT
... [Show More] ANSWER-Annual COGS/ Avrg inventory $
Matrix structure - CORRECT ANSWER-you can have more than one boss, one product group, Team members come from different teams are also members of the product management office
Centralized corp structure - CORRECT ANSWER-decisions are made at the top
Appropriate response to risk (4 Parts) - CORRECT ANSWER-1. Try to avoid risk
2. Risk acceptance
3. Risk transfer
4. Risk mitigation
Implement and monitor plan
Job enlargement - CORRECT ANSWER-giving people more work to do
Job enrichment - CORRECT ANSWER-giving workers more authority
Job Rotation - CORRECT ANSWER-changing positions to provide broader perspective (ex LDP Program)
Business planning - CORRECT ANSWER-Done by product families and translated into synchronized functional plans
Current assets - CORRECT ANSWER-assets that can be spent/ used in less than one year
Inventory ratio (aka activity ratio) - CORRECT ANSWER-COGS/ Avrg Inventory
Fixed assets examples - CORRECT ANSWER-gross property, plant and equipment
Payback period - CORRECT ANSWER-cost of investment/ annual cash savings
Manufacturing costs (aka direct costs) - CORRECT ANSWER-DM, DL, MOH
Product cost is recognized when - CORRECT ANSWER-products are sold
Period costs - CORRECT ANSWER-accrued at time of purchase, not included in COGS
Variable costing is what kind of tool - Job-Order costing - CORRECT ANSWER-lean.. shows fixed OH on your income statement
CORRECT ANSWER-this is made to order environment
Process costing - CORRECT ANSWER-costs are collected for the period and averaged
Strategy - CORRECT ANSWER-A plan to use the organizations resources to achieve a sustainable competitive advantage
vision - CORRECT ANSWER-shared perception of the future, what the organization wants to become
Mission - CORRECT ANSWER-overall goals within business scope
Values - CORRECT ANSWER-organizational guideposts for all business and ethical decisions
Generic Business strategies (5) - CORRECT ANSWER-1. low-cost provider
2. Differentiation
3. Focused low-cost provider
4. Focused differentiation
5. Best-cost provider
Differentiation Strategy - CORRECT ANSWER--made to order environment
-profits margins will contribute to the bottom line
- extra capacity to get things done on time
- customer due dates are NON NEGOTIABLE
3 Objectives of MPR - CORRECT ANSWER-1. customer service levels
2. cost of production
3. inventory investment
Sales and operations planning - CORRECT ANSWER-aggregation level- product family units
happens monthly/ quarterly
forecast length should be several months out
Sales and operations (<->) - CORRECT ANSWER-resource planning
Master scheduling (<->) - CORRECT ANSWER-rough- cut capacity planning
Demand management (<->) - CORRECT ANSWER-distribution planning
Moving Average - CORRECT ANSWER-Sum of demand of most recent periods/ # of periods
engineer to order - CORRECT ANSWER-material is at the supplier's supplier (can be special ordered)
make- to - order - CORRECT ANSWER-material at supplier
assemble- to -on hand - CORRECT ANSWER-lead time is an hour/shift/day
make- to stock - CORRECT ANSWER-finished goods
What increases rivalry among sellers in the same industry? - CORRECT ANSWER-buyer demand grows slowly/ is flat and both strong and weak rivalries exist
What is the primary use of environmental scanning? - CORRECT ANSWER-To identify threats and opportunities
What factors are considered in determining industry attractiveness? - CORRECT ANSWER-profitability and cumulative competitive pressure
Deterrents to new market entry - CORRECT ANSWER-1. when existing competitors have resources o compete aggressively against the new entry or proprietary knowledge or patents
2. when they are protected by government policies
3. when the competitors have well established distribution channels and market locations
4. when entry requires significant capital investment
In the maturing age of the product life cycle how is the organization likely to compete? - CORRECT ANSWER-By emphasizing competitive price and reaching new costumer groups
What is the purpose of the VRIM test? - CORRECT ANSWER-to asses the strength of an organizations competitive advantage
A manufacturer of building supplied decides to improve its competitive advantage by buying sand and gravel suppliers near its factories. What type of strategy is this? - CORRECT ANSWER-Backward Integration
What generalization about vertical integration is often true? - CORRECT ANSWER-It aims at lowering both costs and risks of production
Which situation is the best candidate for outsourcing? - CORRECT ANSWER-The process is not used by the customer often but requires costly equipment
Scipa Automative is a reputable automotive parts supplier with declining profit margins in its home market because of declining automobile sales and high labor costs. Scipa is considering acquiring a midsize parts manufacturer in another country, where a large automative parts market is emerging. Scipa would transfer all manufacturing to this country. The business being considered for acquisition has weak management and technical competencies compared with Scipa's home country levels. Which factor will likely be most influential in Scipa's decision? - CORRECT ANSWER-Access to a growing market
Which organization is pursuing a multi domestic strategy? - CORRECT ANSWER-A manufacturer makes multiple foreign acquisitions and produces components in different countries with standard processes, but products are assembled locally to appeal to local market preferences.
What is key to Toyota's strategy in this initiative? How does this strategy measure up against the Triple Bottom Line? - CORRECT ANSWER- Aligning competencies with social benefit for competitive advantage. It delivers benefits in all threes ares of the TBL
If an organization has implemented a sustainability initiative but it has not produced the desired results, what step should the organization take next?
- CORRECT ANSWER-Implement an Audit
Which option is the most sustainable long term approach to waste in manufacturing? - CORRECT ANSWER-Redesign products to minimize use of materials
What are the three sources of cash flows in the cash flow statement? - CORRECT ANSWER-Operating activities, asset growth, investment interest
In which costing method is fixed manufacturing overhead cost included in the cost of goods sold? - CORRECT ANSWER-Absorption Costing
What ratio can be used to determine a company's ability to pay its liabilities by converting assets in the near term? - CORRECT ANSWER-Current Ratio
Which investment analysis tool accounts for the time value of money? - CORRECT ANSWER-Net present Value
Which statement about process costing is true? - CORRECT ANSWER- Process costing focuses on processing department costs
Which are components of product cost? - CORRECT ANSWER-Overhead, labor, and material costs
How does activity based costing differ from absorption product costing? - CORRECT ANSWER-Activity based costing assigns some non manufacturing costs to produce costs
When are job-order and process costing methods used? - CORRECT ANSWER-When direct labor, materials, and factory overhead costs must be accumulated
Which statement about information and process technology is true? - CORRECT ANSWER-Technology should be selected on the basis of the competitive advantage it conveys
Which factor has the least impact on the choice of process technology? - CORRECT ANSWER-Worker Skills
Quality - CORRECT ANSWER-Conformance of specifications
Dependability - CORRECT ANSWER-Scheduling conformance
Speed - CORRECT ANSWER-Throughput time
Flexibility - CORRECT ANSWER-Rate of new product introduction
Cost - CORRECT ANSWER-Working capital requirments
What is the accurate description of order winning and order qualifying factors? - CORRECT ANSWER-Order qualifying factors represent minimal requirements, while order winning factors exceed expectations
Which is the most practical way to reduce the bullwhip effect? - CORRECT ANSWER-Use point of sale information
What is an advantage of the lead capacity strategy? - CORRECT ANSWER-Maximizing of revenue potential
What is an advantage of small scale operations and facilities? - CORRECT ANSWER-Less overcapacity during scale-up [Show Less]