Question 1

Which statement accurately describes Just-in-Time (JIT) techniques for materials procurement?

Options :

A : Is not actually a procurement strategy

B : Cause fast tracking

C : Remove safety stocks

D : Cost more than they save

Answer: C

Question 2

Given the project's status, how many hours have been earned if 6,573 hours have been spent and the project is 55% complete, against a planned 60%?

Options :

A : 7,200

B : 6,573

C : 6,960

D : 6,600

Answer: D

Question 3

Options :

A : Indirects = $3.53, Overheads = $4.78

B : Indirects = $1.68, Overheads = $6.62

C : Indirects = $6.62, Overheads = $1.68

D : Indirects = $1.60, Overheads = $6.70

Answer: C

Question 4

In a manufacturing operation with the following annual cost structure, calculate the shutdown and break-even points as a percentage of total capacity.Fixed expenses: $5,203,440Variable expenses: $7,091,040Semi-variable expenses: $6,217,750Sales: $26,385,480Additional Information: Semi-variable expenses at zero production equal 30% of the expenses at full (100%) capacity.

Options :

A : 47.3% shutdown point and 12.5% break-even point

B : Cannot be determined from the given information.

C : 12.5% shutdown point and 47.3% break-even point

D : 12.5% shutdown point and 36.6% break-even point

Answer: C

Question 5

Which project site would be the first choice for a corporation?

Options :

A : Site B: New country - Low tax rate - Moderate productivity - Moderate wages - New market -Government faces economic problems

B : Site A: Adjoining an existing site - High tax rate - Moderate productivity - Low wages - Stable government

C : Site C: Adjoining an existing site - High tax rate - Moderate productivity - Moderate wages - New government

D : Site D: Located in an existing industrial park - Moderate productivity -High wages - Stable government (military involved)

Answer: B

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