Question 1

A type of indirect costs,called fixed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

The answer of A type of indirect costs,called fixed costs...

Question 2

The more the cost base is composed of variable or direct costs,the more ______ managers have over the actual management of this cost base on a day-to-day basis.

Accepted Answer

This is because variable or direct costs are directly related to the level of production or activity, and therefore can be managed more easily on a daily basis by the managers. They have more control over these costs compared to fixed or indirect costs, which are not affected by changes in production or activity level.

Question 3

A type of indirect costs,called committed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

Committed costs are costs that an organization commits itself to in advance within an operating year and often spent at the front end of a manufacturing or sales cycle.

Question 4

A type of indirect costs,called direct costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

Direct costs are directly attributable to a specific product or service, such as raw materials or labor, and are not considered indirect costs. Indirect costs are not directly tied to production, like utilities or rent.

Question 5

The more the cost base is composed of fixed or indirect costs,the more difficult it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Accepted Answer

When the cost base is composed of fixed or indirect costs, it means that these costs cannot be easily reduced in response to decreases in demand. This makes it more difficult for managers to implement cost reduction strategies to protect the organization's profitability. Therefore, the statement is true.

Question 6

The relationship between variable and fixed costs impacts the degree of control which a management team has over its cost base.

Accepted Answer

Variable costs are directly linked to the level of production or sales, while fixed costs remain constant regardless of the level of activity. This means that a higher proportion of fixed costs in the cost structure reduces the management team's ability to control costs in the short-term, as these costs cannot be easily adjusted to changes in activity levels. Conversely, a higher proportion of variable costs allows for more flexibility in cost management, as these costs can be adjusted in line with changes in production or sales.

Question 7

Uncontrollable costs are those costs that increase as the level of production increases.

Accepted Answer

Uncontrollable costs are those that cannot be changed or influenced by a manager's decisions, regardless of the level of production. They are not directly tied to production levels.

Question 8

The relationship between variable and fixed costs impacts the degree of skill which a management team has over its cost base.

Accepted Answer

The answer of The relationship between variable and fixed costs...

Question 9

Understanding an organization's cost base is essential in determining the required communications strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Accepted Answer

The answer of Understanding an organization's cost base is essential...

Question 10

To build an understanding of the cost base is accomplished by working through the various zones within an organization's functions and determining the cost composition of each.

Accepted Answer

The answer of To build an understanding of the cost...

Question 11

The more the cost base is composed of fixed or indirect costs,the more easy it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Accepted Answer

Fixed or indirect costs do not change with production levels, making it harder to reduce costs quickly in response to decreased demand, unlike variable costs which can be adjusted more easily.

Question 12

A type of indirect costs,called variable costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

Variable costs are costs that vary with the level of production or sales, and are not committed to upfront. Examples include direct materials and labor. Indirect costs, on the other hand, are fixed and committed to upfront, such as rent and insurance.

Question 13

To build an understanding of the cost base is accomplished by working through the various zones within an organization's divisions and determining the cost composition of each.

Accepted Answer

The answer of To build an understanding of the cost...

Question 14

Understanding an organization's cost base is essential in determining the required distribution strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Accepted Answer

The answer of Understanding an organization's cost base is essential...

Question 15

The relationship between variable and fixed costs impacts the degree of influence which a management team has over its cost base.

Accepted Answer

The answer of The relationship between variable and fixed costs...

Question 16

To build an understanding of the cost base is accomplished by working through the various zones within an organization's value chain and determining the cost composition of each.

Accepted Answer

To build an understanding of the cost base, it is necessary to work through the various zones within an organization's value chain and determine the cost composition of each.

Question 17

Understanding an organization's cost base is essential in determining the required distribution strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Accepted Answer

The answer of Understanding an organization's cost base is essential...

Question 18

The more the cost base is composed of fixed or indirect costs,the more straightforward it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Accepted Answer

Fixed or indirect costs do not vary with production levels, making it challenging to reduce them quickly in response to decreased demand, unlike variable costs which can be adjusted more easily.

Question 19

Understanding an organization's cost base is essential in determining the required pricing strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Accepted Answer

Understanding an organization's cost base is essential in determining the required pricing strategy and its corresponding impact on profit. Therefore, the statement is true.

Question 20

To build an understanding of the cost base is accomplished by working through the various zones within an organization's departments and determining the cost composition of each.

Accepted Answer

The answer of To build an understanding of the cost...

Quiz 12: Technology and Operations Management

A type of indirect costs,called fixed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

The more the cost base is composed of variable or direct costs,the more ______ managers have over the actual management of this cost base on a day-to-day basis.

A type of indirect costs,called committed costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

A type of indirect costs,called direct costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

The more the cost base is composed of fixed or indirect costs,the more difficult it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

The relationship between variable and fixed costs impacts the degree of control which a management team has over its cost base.

Uncontrollable costs are those costs that increase as the level of production increases.

The relationship between variable and fixed costs impacts the degree of skill which a management team has over its cost base.

Understanding an organization's cost base is essential in determining the required communications strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's functions and determining the cost composition of each.

The more the cost base is composed of fixed or indirect costs,the more easy it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

A type of indirect costs,called variable costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's divisions and determining the cost composition of each.

Understanding an organization's cost base is essential in determining the required distribution strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

The relationship between variable and fixed costs impacts the degree of influence which a management team has over its cost base.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's value chain and determining the cost composition of each.

Understanding an organization's cost base is essential in determining the required distribution strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

The more the cost base is composed of fixed or indirect costs,the more straightforward it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Understanding an organization's cost base is essential in determining the required pricing strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's departments and determining the cost composition of each.