14) In a stopwatch time study, the number of cycles that must be timed is a function of:
(I) the variability of observed times.
(II) the desired accuracy for the estimated job time.
(III) the desired confidence for the estimated job time.
A.I only
B.I and II only
C.II and III only
D.I, II, and III
E.I and III only
15) Unique attributes of firms that give them a competitive edge are called:
A.functional strategies.
B.Balanced Scorecards.
C.supply chains.
D.core competencies.
E.sustainable initiatives.
16) The quality manager for Graphics, Inc., is concerned about the quality of the lot of
several thousand posters which her company printed this week and is now preparing to
ship. If the cost of replacing a defective poster once it has been shipped is $10.00, while
the cost of complete 100 percent inspection prior to shipment is $.50 per poster, at what
point is she indifferent between complete inspection and shipment without inspection?
A.5 percent
B.10 percent
C.12 percent
D.20 percent
E.25 percent
17) Production systems with customized outputs typically have relatively:
A.high volumes of output.
B.low unit costs.