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Advanced Multiple Choice Quiz
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1The most appropriate way to manage a constraint in the short term is to seek to remove it
(Learning Objective 1 Ch 19)
A)True
B)False


2In the long run constraints can be anticipated through the design of products and processes.
(Learning Objective 1 Ch 19)
A)True
B)False


3Which of the following terms defines the increase in value that would be created by having one additional unit of a limiting resource?
(Learning Objective 2 Ch 19)
A)Kaizen costing
B)Supply chain management
C)Feasible region
D)Shadow price


4The next 3 questions are based on the following information
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What is the contribution per hour for product D?
(Learning Objective 3 Ch 19)
A)£2.50
B)£3.67
C)£5.0
D)£2.83


5What is the cost per factory hour?
(Learning Objective 3 Ch 19)
A)£40
B)£5
C)£4
D)£2.50


6What is the TA ratio for product A?
(Learning Objective 3 Ch 19)
A)£1.41
B)£0.92
C)£0.71
D)£0.63


7Target costing is a management accounting technique with the following important supply chain implications:
(Learning Objective 4 Ch 19)
A)Progressive cost cuts are required from suppliers
B)External sourcing influenced by cost and design specifications set by the market
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Competition between supply chains rather than individual firms


8Total cost of ownership is a management accounting technique with the following important supply chain implications:
(Learning Objective 5 Ch 19)
A)Recognition that the cost of acquiring goods and services includes more than just quoted piece price.
B)Locked in cost issues may affect suppliers.
C)Sharing of cost and output data enables benefits of partnership sourcing.
D)Synchronisation of production plans.


9Open-book accounting is a management accounting technique with the following important supply chain implications:
(Learning Objective 5 Ch 19)
A)Progressive cost cuts are required from suppliers
B)Enables JIT supply and purchasing based on knowledge of suppliers
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Synchronisation of production plans


10Firms may outsource for which of the following reasons? (more than one answer may be correct)
(Learning Objective 6 Ch 19)
A)as a response to constraints
B)to cut costs
C)To speed up set up
D)get closer to the customer





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