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16. If an organization invests in prevention costs: a. internal failure costs, e

ID: 376699 • Letter: 1

Question

16. If an organization invests in prevention costs:

a. internal failure costs, external failure costs and assurance costs may also be reduced.

b. internal failure costs, external failure costs and assurance costs will increase.

c. internal failure costs, external failure costs and assurance costs will not be impacted.

d. internal failure costs and external failure costs will be reduced but appraisal cost will increase.

e. internal failure costs and external failure costs will increase and appraisal cost will decrease.

17. A typical product will go through the following stages in the product life cycle, EXCEPT:

a. introduction.

b. growth.

c. decline.

d. phase out.

e. maturity.

18. In the service process matrix the mass service is categorized by:

a. low customer involvement and high labor intensity.

b. low customer involvement and low labor intensity.

c. high customer involvement and high labor intensity.

d. high customer involvement and low labor intensity.

e. None of the above.

19. A ________ is scheduled when planned on-hand inventory is equal to or less than safety stock.

a. beginning inventory

b. gross requirements

c. planned receipts

d. scheduled receipts

e. projected on-hand inventory

20. If a project needs to be crashed, the manager will typically focus on activities which:

a. are not on the critical path.

b. are costly to crash.

c. are the least costly to crash.

d. are on the critical path and are the least costly to crash.

e. are on the critical path and are the most costly to crash.

Explanation / Answer

16. a. internal failure costs, external failure costs and assurance costs may also be reduced. Correct option. Prevention costs can reduce overall costs for the company.

17. d. phase out.

18 a. low customer involvement and high labor intensity

19 b. gross requirements

20 d. are on the critical path and are the least costly to crash.

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