Question 1

A manufacturing company is attempting to implement a just-in-time(JIT)purchase policy system by

negotiating with its primary suppliers to accept long-term purchase orders which result in more

frequent deliveries of smaller quantiteies of raw materials.if the JIT purchase policy is successful in

reducing the total inventory costs of the manufacturing company,which of the following

combinations of cost changes would be most likely to occur?

Cost category Cost category

To increase to decrease

Options :

A : Purchasing costs Stockout costs

B : Purchasing costs Quality costs

C : Quality costs Ordering costs

D : Stockout costs Carrying costs

Answer: C

Question 2

An organization’s executive committee, meeting to solve an important problem, spent 30 minutes

analyzing data and debating the cause of the problem. Finally, they agreed and could move onto the

next step. Possible steps in the creative problem-solving process are listed below. Which step should

the committee perform next?

Options :

A : Select a solution.

B : Generate alternative solutions.

C : Identify the problem.

D : Consider the reaction of competitors to various courses of action.

Answer: B

Question 3

Presented below are partial year-end financial statement data for companies A and B.

If Company A has 60 common shares outstanding, then it has a book value per share, to the nearest

cent, of

Options :

A : $1.67

B : $2.50

C : $4.17

D : $5.00

Answer: C

Question 4

Which marketing research instrument is based on follow-up questioning?

Options :

A : Articulate interviewing.

B : Customer prototyping.

C : Closed-end questions.

D : Laddering.

Answer: D

Question 5

Gatsby, Inc. is going to begin factoring its accounts receivable and has collected information on the following four finance companies:

Which company will give Gatsby the highest proceeds from a $100,000 account due in 60 days?

Assume a 360-day year.

Options :

A : Company A.

B : Company B

C : Company C.

D : Company D.

Answer: A