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Q271. Under the balanced scorecard concept, employee satisfaction and retention are measures used under which of the following perspectives?
A. Customer.
B. Internal business.
C. Learning and growth.
D. Financial.
Answer: C
Explanation:
The balanced scorecard is an accounting report that connects the firm's critical success factors CSFs) determined in a strategic analysis to measures of its performance. CSFs are financial and nonfinancial measures. For the learning, growth, and innovation perspective, the CSFs may be development of new products, promptness of their introduction, human resource development, morale, and competence of the workforce. Measures of employee satisfaction, retention, and competence may include RD personnel qualifications, hours of training, skill set levels attained, personnel turnover, and personnel complaints and survey results.
Q272. An evaluator is rating 100 employees on a bell curve. She is instructed to label five employees "extraordinary" and five employees "unsatisfactory." The evaluator also is instructed to label 10 employees "above average" and 10 employees "below average." All of the other employees will be in the "average" category. Which of the following is the major drawback of using this method?
A. The process of using the method is too time consuming
B. An employee's evaluation will depend on who the evaluator is.
C. Different evaluators have different standards.
D. The evaluator must place some employees in the lowest and highest tails of a bell-shaped curve.
Answer: D
Explanation:
The forced normal distribution method forces evaluators to label employees with ratings that fall along the normal distribution of a bell-shaped curve. The major drawback of this method is that the employees will be labeled with an evaluation regardless of their abilities. No matter what, some people will be evaluated at the bottom of the normal distribution and some people will be evaluated at the top of the II normal distribution.
Q273. Which of the following risks is not greater in an electronic funds transfer EFT environment than in a manual system using paper transactions?
A. Unauthorized access and activity.
B. Duplicate transaction processing.
C. Higher cost per transaction.
D. Inadequate backup and recovery capabilities.
Answer: C
Explanation:
EFT is a service provided by financial institutions worldwide that is based on EDI technology. EFT transaction costs are lower than for manual systems because documents and human intervention are eliminated from the transactions process.
Q274. Company J produces two components: A-1 and A-2. The unit throughput contribution margins for A-1 and A-2 are US $150 and US $300, respectively. Each component must proceed through two processes: Operation 1 and Operation 2. The capacity of Operation 1 is 180 machine hours, with A-1 and A-2 requiring 1 hour and 3 hours, respectively.
Furthermore, Company J can sell only 45 units of A-1 and 100 units of A-2. However,
Company J is considering expanding Operation 1's capacity by 90 machine hours at a cost of US $80 per hour. Assuming that Operation 2 has sufficient capacity to handle any additional output from Operation 1, how much should Company J produce?
A. Option A
B. Option C
C. Option C
D. Option D
Answer: C
Explanation:
A-1's throughput contribution margin per unit of the scarce resource the internal binding constraint) is US $150 $150 UCM - 1 machining hour). A-2's throughput contribution margin per unit of the scarce resource is U $100 $300 UCM - 3 machine hours).
Consequently, Company J should produce as much A-1 as it can sell 45 units). If Company adds 90 machine hours to increase the capacity of Operation -I to 270 hours 180 + 90), it cannot produce additional units of A-1 because the external binding constraint has not been relaxed. However, it can produce additional units of A-2. Given that the UCM per machine hour of A-2 is U $100 and that the cost is US $80 per hour, adding capacity to Operation 1 is profitable. Thus, Company J should use 45 machine hours to produce 45 units of A-1. The remaining 225 machine hours 270 - 45) should be used to produce 75 units 225 - 3 hours) of A-2. The latter amount is within the external binding constraint. A company produces two products, and Y, which use material and labor as inputs. Fixed amounts of labor and material are available for production each month In addition. the demand for product Y each month is limited: product has no constraint an the number of units that can be sold. A graphical depiction of these production and demand constraints is presented in the opposite column.
Q275. An electronic meeting conducted between several parties at remote sites is referred to as:
A. Teleprocessing.
B. Interactive processing.
C. Telecommuting.
D. Teleconferencing.
Answer: D
Explanation:
Conducting an electronic meeting among several parties at remote sites is teleconferencing. It can be accomplished by telephone or electronic mail group communication software. Videoconferencing permits the conferees to see each other on video screens. The practice has grown in recent years as companies have attempted to cut their travel costs.
Q276. A value-added tax is collected on the basis of:
A. The difference between the value of an entity's sales and the value of its purchases from other domestic entities.
B. The difference between the selling price of a real estate property and the amount the entity originally paid for it.
C. The value of an entity's sales to related companies.
D. The profit earned on an entity's sales.
Answer: A
Explanation:
A value-added tax is similar to a retail sales tax on consumer goods. It is applied to the difference between the value of an entity's sales and the value of its purchases from other entities, that is. to the value added to the input In effect, a value-added tax is a national tax that penalizes consumption.
Q277. A firm sells its product in a foreign market for a much higher price than in its home market.
The reason is most likely:
A. Price elasticity of demand.
B. Dumping.
C. Gray market activity.
D. Price escalation.
Answer: D
Explanation:
Price escalation is caused by an accumulation of additional costs, e.g., currency fluctuations; transportation expenses; profits earned by importers, wholesalers, and retailers; and import duties.
Q278. When film is sold for use with a camera, this is an example of which of the following product mix pricing strategies?
A. By-product pricing.
B. Optional product pricing.
C. Captive product pricing.
D. Product bundle pricing.
Answer: C
Explanation:
Captive products are those that must be used along with the main product. Sellers often make their money on the captive products, rather than on the main product that is sold at a IOV.+ price. The captive products will therefore be priced well above the storage and delivery costs.
Q279. Monitoring is an important component of internal control. Which of the following is not an example of monitoring?
A. Management regularly compares divisional performance with budgets for the division.
B. Data processing management regularly generates exception reports for unusual transactions or volumes of transactions and follows up with investigation as to causes.
C. Data processing management regularly reconciles batch control totals for items processed with batch controls for items submitted.
D. Management has asked internal auditing to perform regular audits of the controls over cash processing.
Answer: C
Explanation:
Monitoring assesses the quality of internal control over time. Management considers whether internal control is properly designed and operating as intended and modifies it to reflect changing conditions. Monitoring may be in the form of separate, periodic evaluations or of ongoing monitoring. Ongoing monitoring occurs as part of routine operations. It includes management and supervisory review, comparisons, reconciliations, and other actions by personnel as part of their regular activities. However, reconciling batch control totals is a processing control. This information is relevant to a theory of constraints TOC) analysis. A manufacturer that can sell all of its output produces its sole product using three operations. Each unit sells for US $120, and direct materials costing US $48 per unit are added at the start of the first operation. Other variable costs are immaterial. The following annual cost and capacity information is available concerning those operations:
Q280. A company} is formulating its plans for the coming year, including the preparation of its cash budget. Historically, 30% of the company's sales are cash sales. The remaining 70% are credit sales with the following collection pattern.
Sales for the first five months of the coming year are forecast as follows.
For the month of April, the total cash receipts from sales and collections on account would be:
A. US $3,729,968 B. US $3,781,600
C. US $4,025,200
D. US $4,408,000
Answer: B
Explanation:
The cash receipts for April equal April's cash sales US $4,000,000 x 30°l0 = US $1,200,000), 40% of April's credit sales, and 580/o of March's credit sales. Consequently, total cash receipts equal US $3, 78-1,600 [$1,200,000 + $4,000,000 40°lax 70°/o) + $8,600,000 68°f0 70%)].A bank has two drive-in lanes to serve customers: one attached to the bank itself and one on an island. One teller serves bath stations. The bank is interested in determining the average waiting times of customers and has developed a model based on random numbers. The two key factors are the time between successive car arrivals and the time customers wait in line. Assume that the analysis begins with cars just arriving at bath service windows. bath requiring 3 minutes of service time. Car 1 is the attached window attached to the bank unless that window has more cars waiting than the island window. The lone teller will always serve the car that arrived first. If two cars arrive simultaneously, the one at the attached window will be served before the one at the island.
Q281. A direct effect of imposing a protective tariff on an item for which there are both foreign and domestic producers is that domestic producers will sell, <List A> of the item while domestic consumers consume ,List B> of the item.
A. Option A
B. Option B
C. Option C
D. Option D
Answer: B
Explanation:
Domestic producers are not subject to the tariff and will therefore have a price advantage over their foreign competitors. However, absent such competition, the domestic price of the item will be higher. Domestic producers will sell more at a higher price, and domestic consumers will consume less following the price increase.
Q282. A shortest-route algorithm is used in network models to:
A. Identify bottlenecks in a network and hence identify the longest path.
B. Minimize total travel time from one site to each of the other sites in a transportation system.
C. Maximize throughput in networks with distinct entry (source node) and exit (sink node) points.
D. Identify the set of connecting branches having the shortest combined length.
Answer: B
Explanation:
Network models are used to solve managerial problems pertaining to project scheduling, information systems design, and transportation systems design. Networks consisting of nodes and arcs may be created to represent in graphic form problems related to transportation, assignment, and transshipment. The shortest-route, minimal spanning tree, and maximal flow problems are other applications of network models. A shortest-route algorithm minimizes total travel time from one site to each of the other sites in a transportation system.
Q283. The process model used in a theory of constraints (TOC) analysis is called:
A. Just-in-time.
B. Drum-buffer-rope.
C. Materials requirements planning.
D. Lean production.
Answer: B
Explanation:
Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e.. the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.
Q284. Which of the following is a characteristic of total quality management TQM)?
A. Management by objectives.
B. On-the-job training by other workers.
C. Quality by final inspection.
D. Education and self-improvement.
Answer: D
Explanation:
According to management theorist VV. Edwards Deming's well-known 14 points. Education and self-improvement are essential. Knowledge is opportunity. Hence. Continuous improvement should be everyone's primary career objective.
Q285. A Gantt chart:
A. Shows the critical path for a project.
B. Is used for determining an optimal product mix.
C. Shows only the activities along the critical path of a network.
D. Does not necessarily show the critical path through a network.
Answer: D
Explanation:
A Gantt or bar chart is sometimes used in conjunction with PERT or CPM to show the progress of a special project. Time is shown on the horizontal axis, the length of a bar equals the length of an activity, and shading indicates the degree of completion. However, the Gantt chart is not as sophisticated as PERT or CPM in that it does not reflect the relationships among the activities or define a critical path.