Business Essentials (9th Edition) - Chapter 7 - Test Bank
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Course
UNR1302 (UNR1302)
Institution
AAST
Book
Business Essentials
Fundamentals of Business UNR1302 is a course in AASTMT.
The textbook is Business Essentials (9th Edition).
This is Chapter 7 from the test bank of the book.
Business Essentials (9th Edition) - Chapter 11 - Test Bank
Business Essentials (9th Edition) - Chapter 6 - Test Bank
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AAST
UNR1302 (UNR1302)
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1. Firms that make only tangible products are engaged in goods production.
*A) True
B) False
2. In a low-contact system, the customer must be a part of the system to receive
the service.
A) True
*B) False
3. A firm's capacity depends on both how many people it employs and the
number and size of its facilities.
*A) True
B) False
4. If parts A, B, and C must be produced this week, a detailed schedule will
indicate the sequence of work.
*A) True
B) False
5. Quality improvement teams are groups of employees from various work areas
who define, analyze, and solve common production problems.
*A) True
B) False
1
,6. ISO 9000 is a certification program attesting to the fact that a factory,
laboratory, or office has improved its environmental performance.
A) True
*B) False
7. Each stage in the supply chain adds value for the final customer.
*A) True
B) False
8. By turning raw materials into finished goods, production creates form utility.
*A) True
B) False
9. When a company turns out ornaments in time for Christmas, it creates time
utility.
*A) True
B) False
10. Services are more tangible, more customized, and more storable than most
products.
A) True
*B) False
2
,11. Getting a haircut and having your lawn mowed are both examples of
low-contact services.
A) True
*B) False
12. A company typically selects the kind of production used by most of its
competitors.
A) True
*B) False
13. In a same-steps layout, equipment and people are set up to produce one type
of good in a fixed sequence of steps and are arranged according to its production
requirements.
*A) True
B) False
14. An assembly line is an example of a custom-products layout.
A) True
*B) False
3
, 15. A process flowchart identifies the sequence of production activities,
movements of materials, and work performed at each stage of the process.
*A) True
B) False
16. Staff schedules identify which products will be produced and when.
A) True
*B) False
17. Materials management involves the flow of materials inside of the production
facility, while distribution management involves the flow of finished goods.
A) True
*B) False
18. Just-in-time (JIT) production systems normally require large amounts of
"safety stock" to be maintained in a firm's warehouse.
A) True
*B) False
19. Japanese companies adapted the concept of quality circles from quality
improvement teams used by U.S. companies.
A) True
*B) False
4
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