Inventory Carrying Cost is ___% of the average cost of production. a. 13 b. 4 c. 10 d. 8 e. 12

Inventory Carrying Cost is ___% of the average cost of production.  a. 13
b. 4
c. 10
d. 8
e. 12
by

1 Answer

Answer :

e. 12
by

Related questions

If all of the capacity on a production line is sold a. all remaining inventory is sold for half the average cost of production. b. a loss is written off on the income statement. c. Capstone interprets the action as a liquidation instruction. d. the company will receive a cash payment of 65% the original investment on capacity. e. all of the above.

Description : If all of the capacity on a production line is sold a. all remaining inventory is sold for half the average cost of production. b. a loss is written off on the income statement. c. Capstone ... company will receive a cash payment of 65% the original investment on capacity. e. all of the above.

Last Answer : e. all of the above.

If you sell all the capacity on a production line, Capstone interprets this as a. a liquidation instruction and will sell your remaining inventory for one third of the average cost of production. b. a liquidation instruction and will sell your remaining inventory for half the average cost of production. c. a liquidation instruction and will sell your remaining inventory for 65 percent of the production cost.

Description : If you sell all the capacity on a production line, Capstone interprets this as a. a liquidation instruction and will sell your remaining inventory for one third of the average cost of ... a liquidation instruction and will sell your remaining inventory for 65 percent of the production cost.

Last Answer : b. a liquidation instruction and will sell your remaining inventory for half the average cost of production.

In the Capstone® simulation, what are the components of a product’s material cost? a. Cost of Inventory on hand and the cost to store it b. Reliability component cost and positioning component cost c. The costs associated with inventory, shipping and handling d. Level of automation and product reliability e. None of the above

Description : In the Capstone® simulation, what are the components of a product's material cost? a. Cost of Inventory on hand and the cost to store it b. Reliability component cost and positioning component ... , shipping and handling d. Level of automation and product reliability e. None of the above

Last Answer : b. Reliability component cost and positioning component cost

If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: a. 10.7%. b. 12.1%. c. 13.5%. d. 6.1%. e. 12%.

Description : If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: a. 10.7%. b. 12.1%. c. 13.5%. d. 6.1%. e. 12%.

Last Answer : c. 13.5%.

If you sell off a production line (capacity and automation), the amount of cash that the company will receive will be a. 65% of the original cost. b. average cost of production for the previous year (market price). c. 50% of the book value. d. 50% of the acquisition cost. e. 65% of the book value.

Description : If you sell off a production line (capacity and automation), the amount of cash that the company will receive will be a. 65% of the original cost. b. average cost of production for the previous year (market ... . 50% of the book value. d. 50% of the acquisition cost. e. 65% of the book value.

Last Answer : a. 65% of the original cost.

Within the process management initiatives, concurrent engineering a. reduces material cost, inventors’ carrying costs and administrative overhead. b. reduces labor costs. c. increases the effectiveness of the sales budget and therefore demand. d. reduces R&D cycle time. e. none of the above.

Description : Within the process management initiatives, concurrent engineering a. reduces material cost, inventors’ carrying costs and administrative overhead. b. reduces labor costs. c. increases the effectiveness of the sales budget and therefore demand. d. reduces R&D cycle time. e. none of the above.

Last Answer : d. reduces R&D cycle time.

These TQM initiatives reduce administrative overhead; reduces the R&D cycle time and enhances the effectiveness of the promotion and sales budget. a. Concurrent Engineering (CCE); Channel Support systems and Just-in-Time Inventory b. Quality Function Deployment and Benchmarking c. Continuous Product Improvement systems (CPI) and Just-in-Time Inventory d. Channel Support systems and Six Sigma e. Quality Initiative Training (QIT)

Description : These TQM initiatives reduce administrative overhead; reduces the R&D cycle time and enhances the effectiveness of the promotion and sales budget. a. Concurrent Engineering (CCE); Channel Support systems ... Inventory d. Channel Support systems and Six Sigma e. Quality Initiative Training (QIT)

Last Answer : b. Quality Function Deployment and Benchmarking

This process management initiative increases the effectiveness of the Sales Budget and therefore demand. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Description : This process management initiative increases the effectiveness of the Sales Budget and therefore demand. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : d. Channel Support systems

This process management initiative reduces material costs and administrative overhead. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Description : This process management initiative reduces material costs and administrative overhead. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : b. Vendor/Just-in-Time Inventory (JIT)

The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding Pensions, and Stock Issues c. Liquidating Inventory, Stock Issues, Bond Issues and Profits d. Credit Lines, Bond Issues, Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Description : The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding ... Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Last Answer : a. Current Debt, Stock Issues, Bond Issues, and Profits

This process management initiative reduces labor costs. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Channel Support systems d. Quality Initiative Training (QIT)

Description : This process management initiative reduces labor costs. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Channel Support systems d. Quality Initiative Training (QIT)

Last Answer : d. Quality Initiative Training (QIT)

Which of the following is an example of a TQM initiative? a. Continuous Process Improvement b. Just-in-Time [Inventory] c. Quality Function Deployment Effort d. Channel Support Systems

Description : Which of the following is an example of a TQM initiative? a. Continuous Process Improvement b. Just-in-Time [Inventory] c. Quality Function Deployment Effort d. Channel Support Systems

Last Answer : c. Quality Function Deployment Effort

If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? a. 1,200,000 b. 1,300,000 c. 13,000,000 d. 24,000,000 e. 26,000,000

Description : If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? a. 1,200,000 b. 1,300,000 c. 13,000,000 d. 24,000,000 e. 26,000,000

Last Answer : c. 13,000,000

What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4. a. $26 million b. $10 million c. $2.6 million d. $1 million e. none of the above

Description : What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4. a. $26 million b. $10 million c. $2.6 million d. $1 million e. none of the above

Last Answer : b. $10 million

Which three factors drive labor cost? a. Production capacity b. Wage and benefit rates c. Automation levels d. Second shift/Overtime costs e. b, c, d

Description : Which three factors drive labor cost? a. Production capacity b. Wage and benefit rates c. Automation levels d. Second shift/Overtime costs e. b, c, d

Last Answer : e. b, c, d

ncreasing a product’s reliability will result in which of the following changes to production costs? a. Lower material cost b. Higher material cost c. Higher labor costs d. Lower labor costs e. Reducing MTBF has no effect on costs of production

Description : ncreasing a product’s reliability will result in which of the following changes to production costs? a. Lower material cost b. Higher material cost c. Higher labor costs d. Lower labor costs e. Reducing MTBF has no effect on costs of production

Last Answer : b. Higher material cost

If you reduce automation in the production component of Marketing, you will: a. slow down R&D designs. b. incur a retooling cost. c. lose the game. d. none of the above.

Description : If you reduce automation in the production component of Marketing, you will: a. slow down R&D designs. b. incur a retooling cost. c. lose the game. d. none of the above.

Last Answer : b. incur a retooling cost.

The cost to increase automation to 8.0 is equal to a. First Shift Capacity X [$8 X (4 – Automation Level). b. First Shift Capacity X [$8 X (4 + Automation Level). c. First Shift Capacity X [$4 X (8 – Automation Level). d. First Shift Capacity X [$4 X (8 + Automation Level). e. First Shift Capacity X [$4 X (4 – Automation Level)

Description : The cost to increase automation to 8.0 is equal to a. First Shift Capacity X [$8 X (4 - Automation Level). b. First Shift Capacity X [$8 X (4 + Automation Level). c. First Shift Capacity X [$4 X ... Capacity X [$4 X (8 + Automation Level). e. First Shift Capacity X [$4 X (4 - Automation Level)

Last Answer : c. First Shift Capacity X [$4 X (8 – Automation Level).

Which is false about production in Capsim? a. Teams cannot produce beyond 100% capacity. b. Teams should match their production schedule to the teams sales forecast. c. There is a one year lag between purchase and use of additional production capacity. d. There is a one year lag between purchase and use of additional production automation. e. All of the above are true.

Description : Which is false about production in Capsim? a. Teams cannot produce beyond 100% capacity. b. Teams should match their production schedule to the teams sales forecast. c. There is a one year lag ... year lag between purchase and use of additional production automation. e. All of the above are true.

Last Answer : a. Teams cannot produce beyond 100% capacity.

Which screens are necessary to make a complete human resource decision when the advance module has been activated? a. Production & human resources b. Marketing & human resources c. Finance & marketing d. Human resources & TQM e. None of the above choices are correct

Description : Which screens are necessary to make a complete human resource decision when the advance module has been activated? a. Production & human resources b. Marketing & human resources c. Finance & marketing d. Human resources & TQM e. None of the above choices are correct

Last Answer : a. Production & human resources

Which tool can you use as a quick comparison tool when conducting a competitive analysis concerning production? a. Bond ratings b. Stock price c. Customer survey d. Market share e. None of the above

Description : Which tool can you use as a quick comparison tool when conducting a competitive analysis concerning production? a. Bond ratings b. Stock price c. Customer survey d. Market share e. None of the above

Last Answer : c. Customer survey

When should you purchase the production line to produce a new product? a. The year you create the product b. The year after you create the product c. The year prior to its introduction d. The year of its introduction e. The year after its introduction

Description : When should you purchase the production line to produce a new product? a. The year you create the product b. The year after you create the product c. The year prior to its introduction d. The year of its introduction e. The year after its introduction

Last Answer : c. The year prior to its introduction

What is the most important element that ensures the accuracy of the Proformas reports? a. Production capacity b. Marketing sales forecasts c. R & D decisions d. Financial decisions e. All of the above

Description : What is the most important element that ensures the accuracy of the Proformas reports? a. Production capacity b. Marketing sales forecasts c. R & D decisions d. Financial decisions e. All of the above

Last Answer : b. Marketing sales forecasts

Where are the credit policies for customer and supplier set in Capstone.xls? a. Marketing spreadsheet b. Production spreadsheet c. Finance spreadsheet d. Credit spreadsheet e. None of the above

Description : Where are the credit policies for customer and supplier set in Capstone.xls? a. Marketing spreadsheet b. Production spreadsheet c. Finance spreadsheet d. Credit spreadsheet e. None of the above

Last Answer : a. Marketing spreadsheet

Looking at the production, if the potential bar is higher than the actual one, a. the company should spend more budget in sales. b. the company over produced and missed sales opportunities. c. the company produced the right amount and missed no sales opportunities. d. the company under produced and missed sales opportunities. e. the company should spend more budget in marketing.

Description : Looking at the production, if the potential bar is higher than the actual one, a. the company should spend more budget in sales. b. the company over produced and missed sales ... company under produced and missed sales opportunities. e. the company should spend more budget in marketing.

Last Answer : d. the company under produced and missed sales opportunities.

Lowering the automation level will result in a. receiving a cash payment of $4 per unit of capacity. b. a tax credit. c. a charge. d. immediate changes to production lines. e. none of the above.

Description : Lowering the automation level will result in a. receiving a cash payment of $4 per unit of capacity. b. a tax credit. c. a charge. d. immediate changes to production lines. e. none of the above.

Last Answer : c. a charge.

What is most likely to happen on introduction of a new product, if you do not buy the production line, in the year prior to the product’s introduction? a. You cannot manufacture your new product. b. If the product is moved close to existing products on the R&D spreadsheet, a few but insufficient number of the new product would be produced. c. The product would automatically cease to exist. d. The new product would stock out and there would be a loss in sales revenue. e. None of the above.

Description : What is most likely to happen on introduction of a new product, if you do not buy the production line, in the year prior to the product's introduction? a. You cannot manufacture your new product. b. ... new product would stock out and there would be a loss in sales revenue. e. None of the above.

Last Answer : a. You cannot manufacture your new product.

What does not drive length of R&D project? a. The product's automation level on the Production line. b. The amount of money You are willing to spend on it. c. The number of R&D projects underway at the same time. d. The proximity of the product's new location to an existing product in your company's line. e. The labor strike.

Description : What does not drive length of R&D project? a. The product's automation level on the Production line. b. The amount of money You are willing to spend on it. c. The number of R&D projects underway ... of the product's new location to an existing product in your company's line. e. The labor strike.

Last Answer : The labor strike.

A production line with 1000 units of capacity has a max production capability of: a. 1000. b. 1500. c. 2500. d. 2000. e. as many as needed.

Description : A production line with 1000 units of capacity has a max production capability of: a. 1000. b. 1500. c. 2500. d. 2000. e. as many as needed.

Last Answer : d. 2000.

.A functional manager is responsible for a. one of the five market segments. b. R&D, Marketing, Production, Finance, Human Resources, and TQM/PI. c. one of the five products in the starting product line. d. none of these. e. monitoring competitors in their entirety.

Description : .A functional manager is responsible for a. one of the five market segments. b. R&D, Marketing, Production, Finance, Human Resources, and TQM/PI. c. one of the five products in the starting product line. d. none of these. e. monitoring competitors in their entirety.

Last Answer : b. R&D, Marketing, Production, Finance, Human Resources, and TQM/PI.

Your team will make decisions for a. Marketing. b. Finance. c. Human Resources. d. Production. e. all of the above.

Description : Your team will make decisions for a. Marketing. b. Finance. c. Human Resources. d. Production. e. all of the above.

Last Answer : e. all of the above.

What happens to a company when it increases the A/P lag? a. It improves its cash position. b. It deteriorates its cash position. c. It loses credibility. d. Its suppliers withhold material for production. e. a, d.

Description : What happens to a company when it increases the A/P lag? a. It improves its cash position. b. It deteriorates its cash position. c. It loses credibility. d. Its suppliers withhold material for production. e. a, d.

Last Answer : e. a, d.

Which financial obligation is best satisfied with Bond Issues? a. Accounts Payable b. Increased production capacity c. Changes in A/R policy d. Salary increases e. All of the above

Description : Which financial obligation is best satisfied with Bond Issues? a. Accounts Payable b. Increased production capacity c. Changes in A/R policy d. Salary increases e. All of the above

Last Answer : b. Increased production capacity

What is one drawback of increasing automation? a. The product requires increased time/expense for subsequent short-move repositioning. b. Operating second shift becomes more expensive. c. Automation causes large leaps in repositioning. d. Automation slows production capability. e. It requires more employees for the production line.

Description : What is one drawback of increasing automation? a. The product requires increased time/expense for subsequent short-move repositioning. b. Operating second shift becomes more expensive. c. ... d. Automation slows production capability. e. It requires more employees for the production line.

Last Answer : a. The product requires increased time/expense for subsequent short-move repositioning.

How can assembly lines double their capacity? a. Speed up the production. b. Add a second shift. c. Double the material. d. Build more assembly lines. e. Assembly lines cannot be doubled.

Description : How can assembly lines double their capacity? a. Speed up the production. b. Add a second shift. c. Double the material. d. Build more assembly lines. e. Assembly lines cannot be doubled.

Last Answer : b. Add a second shift.

All of the following are direct implications of hiring a second shift except: a. increased production capacity. b. paying higher wages to second shift. c. training costs. d. increased MTBF. e. recruitment costs.

Description : All of the following are direct implications of hiring a second shift except: a. increased production capacity. b. paying higher wages to second shift. c. training costs. d. increased MTBF. e. recruitment costs.

Last Answer : d. increased MTBF.

If you purchase production capacity and automation: a. it is available immediately. b. it is available in 6 months. c. it is available in the next year. d. it is available when you need it. e. none of the above.

Description : If you purchase production capacity and automation: a. it is available immediately. b. it is available in 6 months. c. it is available in the next year. d. it is available when you need it. e. none of the above.

Last Answer : c. it is available in the next year.

The following represent core company activities that must be addressed each year except: a. Research and Development. b. Marketing. c. Finance. d. Labor Negotiations. e. Production.

Description : The following represent core company activities that must be addressed each year except: a. Research and Development. b. Marketing. c. Finance. d. Labor Negotiations. e. Production.

Last Answer : d. Labor Negotiations.

Which one is not an area in which Capstone® separates company activities? a. Marketing b. Production c. R&D d. Logistics e. TQM

Description : Which one is not an area in which Capstone® separates company activities? a. Marketing b. Production c. R&D d. Logistics e. TQM

Last Answer : d. Logistics

What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA). a. 12.1% b. 10.5% c. 11.4% d. 11.2%

Description : What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA). a. 12.1% b. 10.5% c. 11.4% d. 11.2%

Last Answer : b. 10.5%

How much does it cost for MTBF per 1,000 hours of reliability? a. $0.50 b. $0.40 c. $0.30 d. $0.20 e. $0.10

Description : How much does it cost for MTBF per 1,000 hours of reliability? a. $0.50 b. $0.40 c. $0.30 d. $0.20 e. $0.10

Last Answer : c. $0.30

The reliability component cost of a product with a 17,000 hour MTBF rating is: a. $5.10. b. $17.00. c. $51.00. d. $170. e. cost cannot be determined with information given.

Description : The reliability component cost of a product with a 17,000 hour MTBF rating is: a. $5.10. b. $17.00. c. $51.00. d. $170. e. cost cannot be determined with information given.

Last Answer : a. $5.10.

.If you are currently producing 100,000 units and your automation level is 10, how much will it cost you to double your capacity? a. $1,000,000 b. $4,600,000 c. $100,000 d. $10,000 e. none of the above

Description : .If you are currently producing 100,000 units and your automation level is 10, how much will it cost you to double your capacity? a. $1,000,000 b. $4,600,000 c. $100,000 d. $10,000 e. none of the above

Last Answer : b. $4,600,000

The Competitive Intelligence Officer a. thinks like the competitor by determining how that competitor measures success, looks to the future as to what the competition will do in the next year to two years, and evaluate how the competition can undercut your company’s performance. b. a competitor’s production position. c. monitors the competition on the production analysis portion of the Courier and evaluates the

Description : The Competitive Intelligence Officer a. thinks like the competitor by determining how that competitor measures success, looks to the future as to what the competition will do in the next year ... . c. monitors the competition on the production analysis portion of the Courier and evaluates the

Last Answer : a. thinks like the competitor by determining how that competitor measures success, looks to the future as to what the competition will do in the next year to two years, and evaluate how the competition can undercut your company’s performance.

Higher automation leads to lower production costs and has what effect on repositioning a product on the perceptual map? a. makes it more difficult and expensive b. makes it easier and cheaper c. no effect d. eliminates repositioning

Description : Higher automation leads to lower production costs and has what effect on repositioning a product on the perceptual map? a. makes it more difficult and expensive b. makes it easier and cheaper c. no effect d. eliminates repositioning

Last Answer : a. makes it more difficult and expensive

A bond with the number 12.6S2005, indicates that: a. the interest rate is 12.6%; due in May. b. the interest rate is 12%; due on June 05. c. the interest rate is 12%; due in June 2005. d. the interest rate is 5%; due on December 6. e. the interest rate is 12.6%; due on December 31, 2005.

Description : A bond with the number 12.6S2005, indicates that: a. the interest rate is 12.6%; due in May. b. the interest rate is 12%; due on June 05. c. the interest rate is 12%; due in June 2005. d. the interest rate is 5%; due on December 6. e. the interest rate is 12.6%; due on December 31, 2005.

Last Answer : e. the interest rate is 12.6%; due on December 31, 2005.

A 6 month project in R&D costs____________; while a 12 month project in R&D costs ________. a. 1,000,000; 1,500,000 b. 650,000; 850,000 c. 500,000; 1,000,000 d. 750,000; 1,000,000 e. 1,000,000; 750,000

Description : A 6 month project in R&D costs____________; while a 12 month project in R&D costs ________. a. 1,000,000; 1,500,000 b. 650,000; 850,000 c. 500,000; 1,000,000 d. 750,000; 1,000,000 e. 1,000,000; 750,000

Last Answer : c. 500,000; 1,000,000

In only one product segment, diminishing returns for outside sales is reached at a. 75. b. 12. c. 15. d. 45. e. 30.

Description : In only one product segment, diminishing returns for outside sales is reached at a. 75. b. 12. c. 15. d. 45. e. 30.

Last Answer : b. 12.