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Introductory Multiple Choice Quiz
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1
One of the following is not a significance of constraints

(Learning Objective 1 Ch 19)
A)Where there is a single constraint, total contribution margin is maximised by maximising contribution per product
B)Where there is more than one constraint then Linear Programming can be used
C)It is important to try and anticipate constraints during product design
D)Outsourcing can help ease constraints
2
One of the following is not true of Linear Programming

(Learning Objective 2 Ch 19)
A)Where there are two products a graphic solution may be used
B)The graphic solution can’t handle more than two constraints
C)The simplex method may solve a situation where there are more than two products
D)Sensitivity analysis can enhance Linear programming solutions
3
One of the following is not a disadvantage of Linear Programming

(Learning Objective 2 Ch 19)
A)It ignores the opportunity to remove constraints
B)It ignores marketing considerations
C)It is extremely short term
D)Shadow prices can make the system inoperable
4
One of the following is not a feature of the TOC

(Learning Objective 3 Ch 19)
A)The TOC can be used to focus on product improvement
B)TQM and process engineering can be used to “release” constraints
C)Equal effort must be used to deal with non-constraints
D)Effectively managing your constraints is a key to success
5
Regarding the long run impact of constraints, one of the following is untrue

(Learning Objective 4 Ch 19)
A)Kaizen Costing is part of a wide philosophy of world wide improvement
B)Up to 90% of costs may be “locked in” at the preparation stage
C)There should be less emphasis in optimising a static solution
D)Attribute costing aims to encourage continuity at the expense of creativity
6
From a strategic Supply Chain management perspective, one of the following is untrue

(Learning Objective 5 Ch 19)
A)Bought in goods and services are more important than internally generated costs
B)A Standard Cost system has nothing to offer
C)Until recently Supply Chain Management has been a marginal concern in Management Accounting
D)Supply Chain Management is an important part of lean products
7
With regard to Corporate Unbundling one of the following is untrue

(Learning Objective 6 Ch 19)
A)Companies are starting to ask where the “natural ownership” of activities lies
B)Quite often a business can be split up into separate parts
C)One part of a business may have a different culture and economy
D)Increased corporate specialisation may make in harder to design performance measurement systems





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