Published on June 16, 2007
Productivity Quiz: Productivity Quiz How efficient is your memory? Q1. One advantage of Just-In-Time (JIT) management of stock is???: Q1. One advantage of Just-In-Time (JIT) management of stock is??? (a) it reduces the need to plan and organise. (b) it removes the need for delivery Quality Control. (c) it reduces the costs of holding stock within the factory. (d) it works very well with competitive tendering. C Q2. A firm is capital intensive if…?: Q2. A firm is capital intensive if…? it is based in the capital cities of the countries it operates in. it has borrowed a lot of capital from the bank. it has a high proportion of fixed costs in its cost structure, rather than variable costs. (d) has a very steep total cost line on its break-even chart. C Capital intensive is when there is a high proportion of fixed costs, which usually means much capital is invested in the nosiness. Labour intensive is when there are lots of variable costs. These are often labour, but do not have to be. Remember, today most labour is a fixed cost, so most firms are, in fact, capital intensive.and#xB; Q3. A firm is productively efficient when: Q3. A firm is productively efficient when it is producing its product or service at the lowest unit cost that it can. it is selling at the lowest price possible. it has the highest labour productivity that it can. it is making what its customers want. It is about the optimum use of all the factors of production, not just one of them. A Q4. 'Kaisen' is…?: Q4. 'Kaisen' is…? a word meaning 'continuous improvement'. a method of stock control. a modern way of operating a production line. (d) another word for Quality Circles. A Japanese developed method of managing a business. Frequent but small improvements are aimed for. All members of the firm are involved. A Q5. External economies of scale are: Q5. External economies of scale are savings that are made possible by outside agencies. savings that can be made in distribution and selling. savings that are available to a firm as a result of the concentration of an industry in a region. savings that can be made in export markets only. C This really is the preserve of geography. In Sheffield, the steel city, for instance, there are skilled steelworkers available and a concentration of support services available. Any company there derives economies from these factors over which it has no control, in other words that are external to it.and#xB; Q6. All of the following are justifications for holding large stocks of raw materials, except?: Q6. All of the following are justifications for holding large stocks of raw materials, except? the seasonal supply of materials such as coffee beans or even garden peas. large quantities are available on the market. in anticipation of a future shortage and rapid rise in price. to take advantage of significant bulk buying reductions. B Where is the financial advantage in holding large stocks if plenty is available? Q7. Which of the following are NOT a benefit thought to accompany the introduction of technology.: Q7. Which of the following are NOT a benefit thought to accompany the introduction of technology. Improved efficiency and reductions in waste. Increased strains in industrial relations. The introduction of new and better products. (d) Advances in communication. B Q8. The opportunity cost to a business of an investment is: Q8. The opportunity cost to a business of an investment is (a) the amount of capital that has to be borrowed to be able to make the investment. (b) the cost of all the fixed assets that are to be purchased. (c) the next best investment now foregone. (d) the amount by which the project will have risen due to inflation, on a monthly basis C When you spend some money you lose the opportunity of using it to buy something else. The opportunity cost is the 'next best alternative given up, or now foregone'. The opportunity cost of an investment is the next best next most profitable - that was not chosen. How did you score?: How did you score? Marks out of 8????? It’s essential that you understand all of the business terms that you have learnt recently!