Week 8 Knowledge Check Study Guide
Concepts

Mastery

Operations and Material

Score: 25 / 25

Questions

100%

1

2

25

100%

3

4

5

100%

6

7

8

Industry Standards

100%

9

10

E-commerce Systems

100%

12

13

14

100%

15

23

24

100%

16

17

18

Management Costs
Three Types of Operating
Systems
Three Stage Process of
Operation Material
Management

Efficiency and
Effectiveness
Effects on Profitability

11

Competitive Advantage

100%

19

20

21

22

Concept: Operations and Material Management Costs
Mastery

100%

Questions

1

2

25

1.
Which of the following costs is associated with a firm’s operations and materials management function?

A.

The cost of the machinery, computers, tools, buildings, and equipment

B.

The cost of employee wages, including benefits

C.

The cost of work-in-process goods, semifinished products moving through the production process

D.

The stock value of finished products a company holds in inventory Correct:
The Correct Answer is: A.
“A firm’s materials management function is responsible for finding companies that supply high quality, low-cost raw materials and components” such as machinery, computers, tools, buildings, and equipment (Jones, 2007, p. 378).
2.
According to Jones (2007), the semifinished goods and services that go through a company’s production process are called

A.

conversion

B.

inputs

C.

distribution

D.

work-in-process

Correct:
The Correct Answer is: D.
Work-in-process goods are semifinished products that are moving through the production process. Inventory goes through the input, conversion and operations, and output stages.
25.
For what purpose do businesses consider establishing maquiladoras?

A.

Reduce inventory costs.

B.

Reduce raw materials costs.

C.

Reduce labor costs.

D.

Reduce distribution costs.

Correct:
The Correct Answer is: C.
“Today, to take advantage of the low cost of labor in countries overseas, companies often ship the machinery and computers they need to make their products to these countries and establish factories there. Many U.S. companies took this route to enter
Mexico and establish maquiladoras, the name given to U.S. companies’ manufacturing plants in cities along the Mexican border” (Jones, 2007, p. 379).

Concept: Three Types of Operating Systems
Mastery

100%

Questions

3

4

5

3.
According to Jones (2007), which type of operating system is designed to make unique or custom-made products?

A.

Materials management production

B.

Mass production

C.

Flexible production

D.

Small-batch production

Correct:
The Correct Answer is: D.
“Small-batch production is an operating system designed to make one-of-a-kind or small quantities of customized products” (Jones, 2007, p. 392).
4.
Which of the following is a key benefit of mass production operating systems?

A.

A wide range of customized products

B.

Flexible employees and work teams

C.

Lower operating costs

D.

Unique one-of-a-kind products

Correct:
The Correct Answer is: C.
“Mass production is an operating system based on the use of automated machines and standard operating procedures . . . . which makes the work easy, or routine, so much less employee judgment is needed on a day-to-day basis” (Jones, 2007, p.
384). Due to standardization and the large mass production, costs are reduced.
5.
The operating system that combines both the benefits of customized products and low cost production is called

A.

standardized production

B.

mass production

C.

small-batch production

D.

flexible production

Correct:
The Correct Answer is: D.
Flexible production is an advanced operating system that combines the benefits of mass production with the benefits of small-batch production. It can make more customized products at lower costs by using the mass production methods.

Concept: Three Stage Process of Operation Material Management
Mastery

100%

Questions

6

7

8

6.
Of the three stages in operation and materials management, which stage comes first?

A.

Production

B.

Operations

C.

Input

D.

Output

Correct:
The Correct Answer is: C.
In order, the three stages of operation and materials management are input, operations, and output. Input consists of the company’s material management team determining how much value the company creates for the customer. It involves factors such as raw materials, components, labor, and customers.
7.
Some examples of elements in the operations stage of the operations and material management process include

A.

labor and customers

B.

raw materials and components

C.

goods and services

D.

skills and machines

Correct:
The Correct Answer is: D.
The operations stage of the operations and material management process includes elements such as skills, knowledge, machines, and experts. This is the second stage of the Operations and Material Management process, the first being the input stage and the third being the output stage.
8.
Which of the following is the correct order of the operations and material management process? A.

Output, operations, and input

B.

Operations, input, and output

C.

Input, operations, and output

D.

Operations, output, and input

Correct:
The Correct Answer is: C.
The first stage of input involves the raw materials and labor. The next stage is the operations stage, which includes the skills, knowledge, and machines. The final stage is the output, which includes the goods and services.

Concept: Industry Standards
Mastery

100%

Questions

9

10

11

9.
According to Jones (2007), the hardware and software components of a company’s existing IT systems are called its

A.

network computers

B.

mainframes

C.

legacy systems

D.

microprocessors

Correct:
The Correct Answer is: C.
Legacy systems are combinations of “the hardware and software components of a company’s IT system at any one point in time” (Jones, 2007, p. 285).
10.
In the history of modern computers, which of the following came first?

A.

Microprocessors

B.

Mainframe computers

C.

PCs

D.

The World Wide Web

Correct:
The Correct Answer is: B.
Beginning in the 1950’s, mainframe computers served as the center of the company’s information processing and storage system.
11.
In the 1990’s, the Windows operating system, created by Microsoft, was installed in 90% of the world’s PCs. This kind of penetration in the personal computer business made
Windows the

A.

best-of-breed solution

B.

leader in the networking software

C.

industry standard

D.

world’s largest software system

Correct:
The Correct Answer is: C.
The industry standard is the predominant type of technology used in an industry.
Other technologies must be compatible with the industry standard in order to be widely accepted.

Concept: E-commerce Systems
Mastery

100%

Questions

12

13

12.
Which best describes e-commerce?

A.

Same industry commerce

B.

Systems used for exchange

C.

Commerce between wholesalers and retailers

14

D.

Trade that is transacted electronically

Correct:
The Correct Answer is: D.
“E-commerce is trade that takes place between companies, and between companies and individual customers, using IT and the Internet” (Jones, 2007, p.
284).
13.
Which best describes B2B commerce?

A.

Trade that takes place between companies

B.

Same industry commerce

C.

Commerce between wholesalers and retailers

D.

Trade that is transacted electronically

Correct:
The Correct Answer is: A.
“Business-to-business (B2B) commerce is trade that takes place between companies (Jones, 2007, p. 284).
14.
Which of the following is software developed for business within the same industry to conduct trading?

A.

Open source exchange

B.

Networking protocol

C.

B2B marketplace

D.

Business exchange center

Correct:
The Correct Answer is: C.
“A main B2B software application is the B2B marketplace, an industry-specific trading platform set up to connect buyers and sellers using the Internet” (Jones,
2007, p. 284).

Concept: Efficiency and Effectiveness
Mastery

100%

Questions

15

23

24

15.
The combination of which two factors gives people the ability to better react to the economic environment in which they function?

A.

Data and technology

B.

Facts and numbers

C.

Hardware and software

D.

Knowledge and learning

Correct:
The Correct Answer is: D.
Both knowledge and learning help people, including managers, to gain a better understanding of data, in order to better enable them to respond and react to the economic environment around them.
23.
What is the major advantage of broadband technology?

A.

Transfer of data between networks over the Internet

B.

Quick transmission of very large amounts of information

C.

Connection of databases of different institutions

D.

Creation of an area network that links PCs to a central server Correct:
The Correct Answer is: B.
“Broadband technology is a type of communication hardware that allows for the rapid transmission of vast amounts of information” (Jones, 2007, p. 290)
24.
Which of the following best describes the result of information overload?

A.

Excess data causes systems to fail.

B.

Large amounts of real-time data make it difficult to collect. C.

Data is missing which makes information difficult to understand. D.

Vast amounts of information make it difficult to determine what is useful.

Correct:
The Correct Answer is: D.
Information overload describes a situation in which managers need to process so much information that its usefulness is diminished. Since so much information is available for today’s managers processing and determining what is useful can be overwhelming. Concept: Effects on Profitability
Mastery

100%

Questions

16.
One major result of organizational learning is

A.

increased information

B.

increased work load

C.

increased expenses

16

17

18

D.

increased profitability

Correct:
The Correct Answer is: D.
Organizational learning occurs when managers and employees use information and knowledge to their company’s business model with forces and changes in its environment, and this results in increase profitability.
17.
According to Jones (2007), what attributes should information provided to managers have to be useful to the organization?

A.

Complete, efficient, effective, relevant

B.

Clear, quality, engaging, and responsive

C.

Complete, accurate, relevant, and timely

D.

Superior, relevant, timely, and innovative

Correct:
The Correct Answer is: C.
Having a greater understanding of all the various factors that a company is facing puts that company in a better position, but the usefulness of information depends on how complete, accurate and reliable, relevant, and timely the information is.Being complete means making sure a full picture is created, being accurate and reliable makes sure there are no errors, being relevant makes sure that there is no overload, and being timely makes sure everything is up-to-date.
18.
Which of the following is a form of information that is constantly updated to make sure that decisions can be as up-to-date as possible?

A.

Reliable

B.

Complete

C.

Relevant

D.

Real-time

Correct:
The Correct Answer is: D.
“Real-time information is information that is constantly updated” (Jones, 2011, p.
277). It is vital for information managers to make sure that their decisions are as up-to-date as possible and real-time information is critical in that aspect.

Concept: Competitive Advantage
Mastery

100%

Questions

19

20

21

22

19.
Which of the following is one of the four major sources of competitive advantages provided by information technology?

A.

Cutting edge communication

B.

Rapid development

C.

Artificial intelligence

D.

Superior innovation

Correct:
The Correct Answer is: D.
Superior innovation, as well as superior productivity, superior quality, and superior responsiveness to customers are the four sources of how information technology creates a competitive advantage.
20.
Which of the following best explains how information technology improves innovation in a company? A.

Giving customers ability to purchase products more easily B.

Allowing the organization to identify new audiences for an existing product

C.

Providing up-to-date information on changes to products and systems

D.

Tracking changes in financing related to product development Correct:
The Correct Answer is: C.
IT systems store knowledge and assist companies in constantly updating their information in ways to search for new products and improve existing products. IT systems can help increase the rate of innovation by identifying high performing products, keeping information on changing products up-to-date, and by giving members of the company access to the information they need when they need it to innovate. 21.
Information technology improves customer responsiveness by

A.

giving middle managers the ability to collect and process more data

B.

tracking people’s likes, dislikes, and buying habits

C.

allowing the organization to identify issues in products or process D.

tracking changes to products and systems

Correct:
The Correct Answer is: B.
Superior customer responsiveness is about a company better serving its customers in a more reliable and expedient way. Being able to appropriately advertise products to customers based on their likes and dislikes is an example.
22.
Which of the following describes managers’ ability to use the collection and analysis of data to gain information about various tasks and operations to increase the efficiency of a particular function?

A.

Superior information

B.

Superior innovation

C.

Superior quality

D.

Superior productivity

Correct:
The Correct Answer is: D.
“IT gives middle managers the ability to collect and process more data and information about each individual task or operation involved in a functional activity”
(Jones, 2007, p. 277). Managers can apply this knowledge to gain superior productivity.