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Introductory Multiple Choice Quiz
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1
The EOQ formula is E =  2QP/C The costs of placing an order are as follows: Single order cost = £6 Stock cost per unit per year £1 Annual quantity used in units £120,000 The EOQ is:

(Learning Objective 1 Ch 18)
A)4
B)1,200
C)600
D)13.33
2
One of the following is not an argument for JIT

(Learning Objective 2 Ch 18)
A)The cost of carrying stock is greater than allowed for in normal EOQ calculations
B)Concentrating on a few high quality suppliers will reduce order costs
C)JIT increases the EOQ
D)The company should order more frequently
3
One of the following is not true of JIT

(Learning Objective 3 Ch 18)
A)JIT results in a push rather than a pull system
B)Traditional Management Accounting systems may not be compatible with JIT
C)To properly implement JIT, plant layout must normally improve
D)Good flow lines may be U-shaped
4
One of the following is not an advantage of JIT

(Learning Objective 3 Ch 18)
A)Less funds are tied up in stock
B)More set ups are required
C)Throughput time is reduced
D)Defect rates are reduced
5
One of the following is not true of ERP

(Learning Objective 4 Ch 18)
A)It is based on value chain thinking
B)Integrated client serve technology features
C)A lack of flexibility may result when operated in different countries
D)Data has normally to be entered several times
6
One of the following is not true of the contribution of ERP models

(Learning Objective 5 Ch 18)
A)A more learning, improving culture is generated
B)Many of the returns are “hard returns” of reduced head count
C)Many of the gains are “back door” gains such as agreeing common data
D)Early ERP involved automating existing systems
7
One of the following is not true regarding e-business

(Learning Objective 6 Ch 18)
A)Many of the breakthroughs relied on old technology
B)As companies become more virtual there are new challenges for management accountants
C)E-commerce expansion may result in the erosion of high street property values
D)Traditional business plans have nothing to offer internet start-ups
8
One of the following is not a cost of poor quality

(Learning Objective 7 Ch 18)
A)Defects to be rectified
B)Customers who don’t return
C)More expensive materials
D)Customers who tell others of their bad experience
9
One of the following is not a cost of good quality

(Learning Objective 7 Ch 18)
A)Conformance cost
B)Non- appraisal costs
C)More expensive materials
D)External failure costs
10
One of the following is not a feature of TQM

(Learning Objective 8 Ch 18)
A)Studying world class organisations
B)Plan do-check-check-leave cycle
C)Focus on serving customers
D)Systematic problem solving using teams
11
One of the following is not a feature of benchmarking

(Learning Objective 9 Ch 18)
A)Studying organisations that are the best.
B)A close relationship with TQM
C)A close relationship with ABM
D)Setting targets that are easily attainable
12
One of the following is not a feature of business process re-engineering
<br> (Learning Objective 10 Ch 18)
A)It focuses on non-value added activities
B)It is more radical than TQM
C)It is less likely than TQM to be imposed from above
D)It involves a complete re-design





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