1. A TQM team at Narton Corp has recorded the following average times for production:

Wait 3.0 days Move 0.5 days

Inspection 0.4 days Queue 9.3 days

Process 0.2 days

What is the Manufacturing Cycle Efficiency?

1. 1. 50.0%
   2. 1.9%
   3. 52.0%
   4. 5.1%
2. The annual cost of insurance is___________. It will remain the same if she drives or takes the train.
   1. Favorable
   2. Relevant
   3. Irrelevant
   4. All of the above
3. When a company is involved in more than one activity in the entire value chain, it is vertically integrated. A decision to carry out one of the activities in the value chain internally, rather than to buy externally from a supplier is called a _______________ decision.
   1. Alternate decision making
   2. Make or buy
   3. Budgeting
   4. Production

4. The benefit that is foregone as a result of pursuing some course of action is called as_________________. This are not actual cash outlays and are not recorded in the formal accounts of an organization.
   1. Joint Cost
   2. Sunk Cost
   3. Opportunity costs
   4. Relevant cost
5. A TQM team at Narton Corp has recorded the following average times for production:

Wait 3.0 days Move 0.5 days

Inspection 0.4 days Queue 9.3 days

Process 0.2 days

What is the delivery cycle time?

5. 1. 0.5 days
   2. 0.7 days
   3. 13.4 days
   4. 10.4 days
6. When analyzing a special order, only the ___________ costs and benefits are relevant.
   1. Incremental
   2. Sunk
   3. Opportunity
   4. Relevant
7. Which of the following is NOT the capital budgeting technique?
   1. Payback period
   2. Net present value
   3. Sunk cost
   4. Internal rate of return
8. A ________ is a follow-up after the project has been completed to see whether or not expected results were actually realized.
   1. Post-audit
   2. Pre-audit
   3. Standard costing
   4. Variance analysis
9. When investment center managers are evaluated using__________________, a projects simple rate of return may motivate them to bypass investment opportunities that earn positive net present values.
   1. Net present value
   2. Payback period
   3. Return on investment (ROI)
   4. Internal rate of return
10. Management of the Daily Grind wants to install an espresso bar in its restaurant that:

Cost $140,000 and has a 10-year life.

Will generate incremental revenues of $100,000 and incremental expenses of $65,000 including depreciation.

What is the simple rate of return on the investment project?

1. 15%
2. 25%
3. 35%
4. 5%