Multiple Choice Questions

1. Elements of a system may include all of the following except:

a) Inputs b) Outputs c) Suppliers d) Customers e) Specifications

2. Baghdad for Pre-Casting Building, Inc. builds custom homes that range
in size from 5,000 to 10,000 square feet. Which of the following would not
be a rational base for allocating overhead costs to the custom homes?
a) Labor hours b) Number of homes built c) Direct materials cost
d) Sizes of the homes

3. At the beginning of the year, Basra Company Ltd. expected to incur $48,000
of overhead costs in producing 6,000 units of product. The direct material cost
is $20 per unit of product. Direct labor cost is $30 per unit. During May, 500
units were produced. The total cost of the units produced in May was
a) $29,000. b) $25,000. c) $21,000. d) $30,000.

4- Where a specific product is the cost object, the wages of a security guard
would probably be:
a) Direct, variable. b) Indirect, variable. c) Direct, fixed. d) Indirect, fixed.
 Multiple Choice Questions
5. Hablet Company allocates factory indirect costs based upon factory
machine hours. For 2012, they estimated factory indirect costs as $366,400
and machine hours at 19,500. At the end of 2012, they discovered that
actual factory indirect costs were $386,900 and actual machine hours
were 20,050. Determine the allocation rate.
a) $18.79 b) $14.40 c) $18.27 d) $19.52

6. Jan 1st 2001. Bought a desktop computer for $3250. Estimated Useful life 3
years. Estimated Salvage Value $100. What is the beginning book value at the
beginning of the 3rd year?
a) 1150 b) 3250 c) 2200 d) 1050

7. A balance sheet shows the financial ......... that a company has at a point in
time and where they came from.
a) Records b) resources c) returns d) revenues
 Multiple Choice Questions
8. Which of the following ratios would be considered a measurement of short-
term liquidity?
a) Acid-test ratio. b) Times interest earned. c) Debt ratio. d) Return on equity.
e) Earnings per share.

9- The ____ is a sequence of tasks that cannot be delayed without causing

the project to be completed late.
a) Float b) Payback Period c) Critical Path d) Milestone

10- Which of the following statement is incorrect about Gantt Charts?

a) Gantt Charts are extremely easy to use and are quite well understood.
b) Gantt Charts show interdependencies and relationships between
activities.
c) Gantt Charts show not only the time required for an activity but also
the time at which
d) A particular activity takes place.
e) Gantt Charts can also be used while scheduling service operations.
 Multiple Choice Questions
11- Which of the following statements is true about the given network?
a) Activity A cannot start until activity B is completed.
b) Activity C cannot start until activity D is completed.
c) Activity D cannot start until activity E is completed.
d) Activity E cannot start until activity D is completed.
e) Activity C cannot start until activity E is completed.

12 -Symbols used within a typical flow-process chart include all of the

following except:
a) A trapezoid, representing a work queue
b) A circle, representing an operation
c) An arrow, representing transportation
d) A triangle, representing storage
e) A square, representing inspection
 Q2

The four paths are A D G J, A C F J, A E H I J, and B H I J.

The critical path is 1 -A-> 2 -D-> 4 -G-> 7 -J-> 8. As managers, we must be sure
that activities A, D, G, and J are done on time. If any of those activities is late,
the project will be late.
Q3: A
Q3:B
1-Typical Organisation Structure
Managing
Director

Financial Producing Personal Selling

Director Director Director Director

Chief
Maintenance
Producing Chief Buyer
Eng.
Eng.

Press Shop Paint Shop W/C

Foreman Foreman Foremam

2-Matrix Structure

Managing
Director

Production
Manager Project Selling Personal
Director