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1. Design and manufacture of bottle cap mold for Avon Products Company is the ex of:

a. A facility-level resource or activity
b. A customer-level resource or activity
c. A batch-level resource or activity
d. A product-level resource or activity

2. Which of the statements given is true?

a. Approval is generally a value-added activity
b. Setup of machines for production is a value-added activity
c. Processing itself is a source of non-value-added activity in many manufacturing firms
d. It may not be possible to eradicate all non-value-added activities

3. Which of the given statements is True regarding activity-based-costing and profitability analysis?

a. Unit level costing measures impacts of different products use of resources
b. Full costing measures impacts of various products on spending for resources
c. Only unit level costing is useful for decision making about products and services
d. Companies with complex array of products manufactured from common facilities tend to benefit more from ABC than companies with single product

4. Malcolm Baldrige Award:

a. Is awarded to companies around world which excel in quality improvement
b. Is awarded to company which does the best job of adhering to ISO 9000 standards
c. Recognizes U.S. firms with outstanding records of quality improvements and quality management
d. Is needed to received ISO 9000 certification

5. Dunn Corporation determines that 60% of the time spent in its manufacturing process is on non-value added activities like moving parts and inspection. Dunn requires to improve:

a. Its throughput
b. Its customer-response time
c. Its throughput time ratio
d. Its average cycle time

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