Chapter 6 - Operations Management

Question 1

How often should contractors visit the job site ?

Answer 1

Daily

Question 2

All contractor’s license qualifiers, including _______ and _______, are by law required to exercise “ direct supervision and control”

Answer 2

RME and RMOs

Question 3

The proper size of an inventory is at a ____________

Answer 3

Minimum

Question 4

Existing inventory should be ___________ on a regular basis and before adjusting levels in the bookkeeping.

Answer 4

Counted

Question 5

Lower inventory levels reduce space and storage requirements as well as increase _________ ________

Answer 5

Working capital

Question 6

What type of bond guarantees that the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract ?

Answer 6

Bid Bond

Question 7

What type of bond guarantees both job and completion and payment of all labor and materials ?

Answer 7

Contract bond

Question 8

What type of bond guarantees that the suppliers and subcontractors will be paid for work performed under the contract ?

Answer 8

Payment bond

Question 9

What type of bond guarantees that the contractor will perform the contract in accordance with its terms and conditions ?

Answer 9

Performance Bond

Question 10

What is the most difficult item to estimate when in comes to bidding process ?

Answer 10

Labor

Question 11

Accounting and office rent are considered what ?

Answer 11

Overhead

Question 12

What is the formula for calculating percentage of overhead ?

Answer 12

Annual overhead ÷ annual income = overhead %