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VV makes two pies: the “Apple” Pie and the “Lemon” Pie.

24 / 10 / 2019 Assignments

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VV makes two pies: the “Apple” Pie and the “Lemon” Pie.

1. VV makes two pies: the “Apple” Pie and the “Lemon” Pie.Assume that the only constraint is the preparing process, with only 3,000labour minutes available per day for preparation. VV should:Select one:A Make 400 Apple pies and 500 Lemon pies.B Make 300 Apple pies and 375 Lemon pies.C Make 400 Apple pies and 250 Lemon piesD Make 200 Apple pies and 500 Lemon pies.2. The constraint in a report writing business is the proof­reader. Sendingthe proof­reader to a speed reading course so that he can proof­readreports faster is an example of which of the following TOC steps?:Select one:A Identifying the constraintB Exploiting the constraintC Subordinating activities carried out by other workers in the businessD Elevating the constraint3. Furtastic Ltd specialises in the production of baby seal fur hats. Threemachines are used sequentially in the production of hats. The middlemachine keeps breaking down, meaning that the third machine often hasno inventory to work on. What type of constraint is Furtastic facing?Select one:A Supply constraintB Managerial constraintC Material constraintD Demand constraint4. An example of an internal, tangible constraint is:Select one:Worker reluctance to work overtimeManagerial policy prohibiting work on weekendsUnreliable supplierNone of the above5. Given a choice, a manager should choose the product mix thatSelect one:A maximises throughput.B maximises sales revenue.C minimises non­unit­level costs.D minimises inventory costs.6. What is the quantitative decision rule for the net present value method?Select one:a. Accept investments whose return on investment exceeds the accountingrate of return.b. Accept investments whose weighted average cost of capital exceedsthe return on investment.c. Accept investments whose required rate of return exceeds the internalrate of return.d. Accept investments with a positive net present value.7. One criterion that managers sometimes apply in ranking investmentproposals is called the:Select one:a. profitability indexb. annuity indexc. investment opportunity indexd. capital ranking approach8. The main concept of time value of money is:Select one:a. that cash flows received in the distant future are not as valuable as cashflows received in the near futureb. the recognition of all relevant costs in absolute dollarsc. that cash flows received in different years should be treated as equald. that cash payments made in the future have the same value today9.If the incremental revenue increased by $1 million dollars, what wouldbe the after­tax cash inflow (income tax rate of 28 per cent)?Select one:a. $400 000b. $1 008 000c. $980 000d. $720 00010.Projects with a zero or positive net present value (NPV) are acceptedusing the net present value method. Why is this so?Select one:a. Because a non­negative NPV ensures the company will be profitable.b. Because the company will have the relevant cash flow to pay its debtsas, and when, they fall due.c. Because the return is at least equal to the cost of capital.d. Because a non­negative NPV ensures the company will be profitableAND because the company will have the relevant cash flow to pay itsdebts as, and when, they fall due.

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