Question 1

At the break-even point:

Accepted Answer

A)   profits are maximized.
B)   variable costs are equal to total fixed costs.
C)   target profit is achieved.
D)   total revenue is equal to total cost.
E)   satisfactory profit is achieved.F) All of the above
G) A) and D)

Question 2

The relationship between variable and fixed costs impacts the degree of influence which a management team has over its cost base.

Accepted Answer

A) True 
 B)False

Question 3

The relationship between variable and fixed costs impacts the _______ which a management team has over its cost base.

Accepted Answer

A)   degree of influence
B)   degree of skill
C)   degree of control
D)   measurement of control
E)   amount of controlF) A) and C)
G) C) and D)

Question 4

Why do managers need to understand the cost structure?

Accepted Answer

As managers,we need to understand the co...

Question 5

A type of indirect costs,called fixed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

A) True 
 B)False

Question 6

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is equilibrium volume.

Accepted Answer

A) True 
 B)False

Question 7

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the balanced quantity.

Accepted Answer

A) True 
 B)False

Question 8

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the skimming price strategy.

Accepted Answer

A) True 
 B)False

Question 9

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Accepted Answer

A)   mixed costs.
B)   controllable costs.
C)   fixed costs.
D)   variable costs.
E)   indirect costs.F) B) and E)
G) A) and B)

Question 10

Producers often use market pressures as a primary basis for setting prices on the goods and services they offer the public.

Accepted Answer

A) True 
 B)False

Exam 12: Technology and Operations Management

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is equilibrium volume.

Correct Answer
verified

At the break-even point:

Correct Answer
verified

Producers often use market pressures as a primary basis for setting prices on the goods and services they offer the public.

Correct Answer
verified

Correct Answer
verified

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Correct Answer
verified

Why do managers need to understand the cost structure?

Correct Answer
verified
As managers,we need to understand the co...
View Answer

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the balanced quantity.

Correct Answer
verified

The relationship between variable and fixed costs impacts the degree of influence which a management team has over its cost base.

Correct Answer
verified

A type of indirect costs,called fixed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Correct Answer
verified

The relationship between variable and fixed costs impacts the _______ which a management team has over its cost base.

Correct Answer
verified

Exam 12: Technology and Operations Management

The point where the revenue, from the sales of the products (units) offered to the marketplace, equals the total costs (variable costs + fixed costs) associated with producing these products (units) is equilibrium volume.

Correct AnswerverifiedShow Answer

At the break-even point:

Correct AnswerverifiedShow Answer

Producers often use market pressures as a primary basis for setting prices on the goods and services they offer the public.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Correct AnswerverifiedShow Answer

Why do managers need to understand the cost structure?

Correct AnswerverifiedAs managers,we need to understand the co...View AnswerShow Answer

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the balanced quantity.

Correct AnswerverifiedShow Answer

The relationship between variable and fixed costs impacts the degree of influence which a management team has over its cost base.

Correct AnswerverifiedShow Answer

A type of indirect costs,called fixed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Correct AnswerverifiedShow Answer

The relationship between variable and fixed costs impacts the _______ which a management team has over its cost base.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
As managers,we need to understand the co...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified