Production and Operations Management: Test 1 - Question Bank

Question Bank ''Production and Operations Management: Test 1'' with interactive revision questions on a variety of business topics.

Question Bank - Business Studies

Production and Operations Management: Test 1

Q1. One advantage of Just-In-Time (JIT) management of stocks is

(Select one answer)

(a) * it reduces the need to plan and organise.
(b) * it removes the need for delivery Quality Control.
(c) * it reduces the costs of holding stock within the factory.
(d) * it works very well with competitive tendering.


Source: bized


Q2. A firm is capital intensive if

(Select one answer)

(a) * it is based in the capital cities of the countries it operates in.
(b) * it has borrowed a lot of capital from the bank.
(c) * it has a high proportion of fixed costs in its cost structure, rather than variable costs.
(d) * has a very steep total cost line on its break-even chart.


Source: bized


Q3. A firm is productively efficient when

(Select one answer)

(a) * it is producing its product or service at the lowest unit cost that it can.
(b) * it is selling at the lowest price possible.
(c) * it has the highest labour productivity that it can.
(d) * it is making what its customers want.


Source: bized


Q4. 'Kaisen' is

(Select one answer)

(a) * a word meaning 'continuous improvement'.
(b) * a method of stock control.
(c) * a modern way of operating a production line.
(d) * another word for Quality Circles.


Source: bized


Q5. All of the following are examples of economies of scale, except

(Select one answer)

(a) * being able to employ specialist staff efficiently.
(b) * the effective division of labour.
(c) * having better communications.
(d) * bulk buying.


Source: bized


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