Question

1.2 Answer the following multiple choice questions, by selecting the appropriate answer from the possibilities given.
(For example, 1.2.1 - d)

1.2.1 As specialization becomes the order of the day, vertically integrated companies may be supplanted by networked constellations of business partners. Which of the following activities would resort under this new partnership?



(1)
a) Outsourcing everything
b) Talking inventories
c) An industrial army of robots
d) All of the above

1.2.2 Which of the following is a major challenge for the future in the field of Operations Management?

(1)
a) Managing customer touch points
b) Inventory
c) Environmental quality
d) Transformation

1.2.3 Which heading does not appear in an Income Statement?
(1)
a) Gross profit
b) Operating Profit
c) Total assets
d) Net profit before taxes
1.2.4 The point where neither profit or loss is realized is called:
(1)
a) Breakeven point
b) Median point
c) Central point
d) Balanced point

1.2.5 Total costs can be divided into three (3) main categories namely:

(1)
a) Overheads, sales, expenses
b) Overheads, labour, material
c) Material, expenses, labour
d) None of the above

1.2.6 ABC Company has total current assets of R1 000 000,00 and Total current liabilities of R500 000,00. Calculate the current ratio.


(1)
a) 1:2
b) 2:1
c) 1:1
d) 0.5:1

1.2.7 DEF Company has current assts including cash of R200 000,00, accounts receivable of R200 000,00 and marketable securities(public traded stock) valued at R100 000,00. Current liabilities total R500 000,00. Calculate the Quick ratio.




(1)
a) 1:1
b) 0.5:1
c) 0.4:1
d) 0.3:1



1.2.8 XYZ Company has accounts payable of R100 000,00 and cost of goods sold for the year of R1 400 000,00. Calculate the Days payable outstanding.


(1)
a) 14 days
b) 26.07 days
c) 27.03 days
d) 15.01 days

1.2.9 Company A sells pencils for R8,00 each. The company’s fixed costs amount to R120,00 per month and an additional cost of R3,00 is incurred per pencil (e.g. variable cost). In month A the company sold 50 pencils. Determine the breakeven point for month A.




(1)
a) 11 units
b) 40 units
c) 15 units
d) 24 units

1.2.10 Determine the Re- order level for Item XXX1 using the following information:

Re- order quantity: 1200
Re- order period: 4-6 weeks
Maximum consumption: 225 units per week
Normal consumption per week: 200 units per week






(1)
a) 1350 units
b) 1125 units
c) 1000 units
d) 900 units
[20]

Answer 1