Question 1. The ratio of earnings to sales for a given time period is the:

cost of goods sold.

merchandise inventory.

profit margin.

return on assets.

Question 2. The analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad from his desk. His weathered hands punched the buttons on his desk calculator deliberately as he divided earnings by total assets in order to calculate:

return on assets.

cost of goods sold.

merchandise inventory.

profit margin.

Question 3. The ratio of earnings to sales for a given time period is a firm's profit margin.

True

False

Question 4. The deregulation of logistics in trucking and rail industries began with the passage of the Motor Carrier Regulatory Reform and Modernization Act of 1990.

True

False

Question 5. The net result of the renaissance in logistics is that logistics costs are expected to decline.

True

False

Question 6. A qualitative forecasting technique well-suited for demand forecasts of a new product or service is the:

Delphi method.

Build-up forecast.

life cycle analogy method.

market survey.

Question 7. Forecasts are almost always wrong.

True

False

Question 8. What percent of North American gross domestic product is accounted for by logistics?

almost 11 percent

almost 22 percent

almost 33 percent

almost 44 percent

Question 9. Selecting suppliers and negotiating terms are part of Purchasing's role in a business.

True

False

Question 10. Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities) and indirect (costs that are not tied to the level of operations or supply chain activity).

True

False