Self Test

Question 1

Production means the creation of _________________.

Answer 1

something of value

Question 2

__________ means the creation of something of value.

Answer 2

Production

Question 3

The production sector that has the greatest impact in our society is ______________.

Answer 3

manufacturing

Question 4

Mass production generally brings about _____________________.

Answer 4

lower prices

Question 5

Firm A buys from Firm B. Firm B, in turn, buys from Firm A. This process is an example of ________________.

Answer 5

reciprocity

Question 6

Intermittent operations is characteristic of __________________________.

Answer 6

custom production

Question 7

The issuing of orders to begin production jobs or processing is _______________.

Answer 7

scheduling

Question 8

Work orders flow from the scheduling department to the _________________________.

Answer 8

purchasing department

Question 9

_________________ is an incentive of simplification and standardization.

Answer 9

Cost savings

Question 10

This production characteristic will generally yield a wider range of prices.

Answer 10

Diversification

Question 11

____________ is the arrangement of equipment and plant design.

Answer 11

Layout

Question 12

Production facilities for many firms are often located in _______________________-.

Answer 12

industrial parks

Question 13

A production layout may be _________________- or __________________–oriented

Answer 13

product; process

Question 14

A firm capable of manufacturing the component parts for its final product must determine whether it should __________ or _________ the parts.

Answer 14

make; buy

Question 15

4 important factors to be considered when purchasing: (DIFFERENT FROM 4 SPECIFICATIONS THAT MAY BE PROVIDED ON A PURCHASE REQUISITION, WHICH IS QUANTITY, SIZE, CAPACITY, AND DESIRED DELIVERY DATE)

Answer 15

quantity; quality; cost; delivery dependability

Question 16

A firm may obtain use of equipment without making large investments of money by ___________.

Answer 16

leasing

Question 17

A purchase requisition may not be required if the specified ____________ limit is not exceeded.

Answer 17

dollar

Question 18

Maintaining an up-to-date record of product levels is referred to as a ______________ inventory.

Answer 18

perpetual

Question 19

A responsibility of a production foreman is to monitor __________- and _____________ of production.

Answer 19

quality; quantity

Question 20

A ____________ is necessary for mass production.

Answer 20

mass market

Question 21

______________ is the monitoring of the inputs to the production process.

Answer 21

Production control

Question 22

_____________ makes the manufacturing process a series of limited tasks.

Answer 22

Job specialization

Question 23

The production characteristic that will most likely broaden a manufacturer’s market is ______________________.

Answer 23

diversification

Question 24

The cost savings produced by _________________ does not guarantee the manufacturer a profit.

Answer 24

production simplification

Question 25

A production facility location must meet _____________ to be acceptable.

Answer 25

cost standards

Question 26

A purchase requisition is of no value for inventory control. (True or false?)

Answer 26

False

Question 27

Most production foremen are required to order supplies, in addition to other duties. (True or false?)

Answer 27

False

Question 28

The amount of labor required is an inventory-control question. (True or false?)

Answer 28

False

Question 29

___________ are submitted by the manufacturing unit to the cost-accounting department.

Answer 29

Cost figures

Question 30

process production

Answer 30

continuous/automatic operations

Question 31

key role in human relations

Answer 31

foreman

Question 32

purchase discounts

Answer 32

quantity ordered

Question 33

mass production

Answer 33

standardized products

Question 34

transportation

Answer 34

cost-oriented production site factor

Question 35

buying expertise

Answer 35

purchasing agent

Question 36

expensive production

Answer 36

custom production

Question 37

diversification

Answer 37

greater profits

Question 38

time and motion studies

Answer 38

human production element

Question 39

inventory cost

Answer 39

storage