LSU ISDS 3100 Final Exam Questions and Answers
Andy is in the business of buying Ford vans and medical equipment to make ambulances. The materials have $50,000 value total for the suppliers, and customers are willing to pay $100,000 for the finished ambulance. How much value does Andy create b...
LSU ISDS 3100 Final Exam Questions and Answers
Andy is in the business of buying Ford vans and medical equipment to make
ambulances. The materials have $50,000 value total for the suppliers, and customers
are willing to pay $100,000 for the finished ambulance. How much value does Andy
create by making an ambulance? - Answer$50,000
/.The analysis of added value is only useful when a company is innovating (creating
value in new ways and offering things no competitor is currently offering). - AnswerFalse
/.Email applications, human resources systems, and point-of-scale systems are
examples of which type of information system? - AnswerTactical
/.Leslie sells daily planners which consumers are willing to buy for $25. A competing
company entered the market recently that uses the exact same materials and
specifications that consumers will buy for the same price. How much added value does
Leslie contribute in this competitive market? - Answer$0
/.Ron, a skilled woodcrafter, creates $2,000 value from each of his artisan tables. If
consumers are willing to spend $5,000 for the table, what is the supplier opportunity
cost involved in Ron's operation? - Answer$3,000
/.April is a shift manager at a Starbucks in Lyon, France. She wants to pitch an idea for
a bio-coffee to her boss and is working out the total value created from each cup of bio-
coffee. The eco-friendly coffee beans for a standard coffee cup cost $1. The rest of the
raw materials and expenses per cup are $0.85. Using a survey, she has determined
that the customers are willing to pay $5 per cup. What is the total value created? -
Answer$3.15
/.Ann's upscale boutique in New York creates custom-made dresses for clients. One of
them is willing to pay extra to get the order completed urgently. Ann, who was
considering a vacation at this time, will stay to complete this project first. This is creating
new values for her business. - AnswerTrue
/.Input resources in a firm's transformation process can be any factor of production,
such as raw materials, labor, equity and debt capital, managerial talent, support
services like storage and transport, etc. - AnswerTrue
/.Economic value is generated when worthwhile things that did not exist before are
created. - AnswerTrue
/.Which of the following is a valid method of improving one's competitive advantage? -
AnswerReduce supplier opportunity cost
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