Question 1

Refer to the scenario below to answer the following questions.
Dave's Doughnuts (Scenario)
Dave Glazer is the owner of Dave's Doughnuts, a five-store chain of doughnut shops located in the Okanagan region of British Columbia. At weekly management meetings, Dave asks each of the five store managers to report on local trends and new customer requests.
-Dave likes to keep informed about business trends and reads the industry magazine Doughnut Digest every month. Each year he attends the National Conference of Doughnut Makers and updates his managers upon his return. These activities are examples of __________.

Accepted Answer

Dave's activities of staying informed about business trends and attending industry conferences indicate that he is engaging in environmental scanning - the process of gathering and analyzing information about the external environment to identify potential opportunities and threats that could impact the organization. This helps Dave stay up-to-date on industry trends and make informed decisions about how to run his business. The other options, such as strategic planning and forecasting, may be facilitated through environmental scanning but do not accurately describe Dave's specific actions in this scenario. Time series analysis and corporate espionage are not relevant to this scenario.

Question 2

The final step in the project planning process is to __________.

Accepted Answer

The answer of The final step in the project planning...

Question 3

The role of project manager remains difficult because she or he is managing people who __________.

Accepted Answer

The answer of The role of project manager remains difficult...

Question 4

Refer to the scenario below to answer the following questions.
Dave's Doughnuts (Scenario)
Dave Glazer is the owner of Dave's Doughnuts, a five-store chain of doughnut shops located in the Okanagan region of British Columbia. At weekly management meetings, Dave asks each of the five store managers to report on local trends and new customer requests.
-Dave recently conducted an experiment with three new cooking oils in his stores. Customers were invited to participate in a taste-preference test of three sample doughnuts, one for each of the oils: N, O, and W. Based on the results of this test, Dave concluded that oil N was the favourite. Which planning technique was Dave using in this instance?

Accepted Answer

Dave was using a qualitative forecasting technique by conducting a taste-preference test to gather opinions from customers.

Question 5

A __________ is a consistent view of what the future is likely to be.

Accepted Answer

A scenario is a consistent view of what the future is likely to be, often used in planning and forecasting to anticipate possible future developments.

Question 6

The Chilliwack Volunteer Fire Department is selling cookbooks as a fundraiser. Each cookbook costs $3 to produce, and total fixed costs are $400. If the cookbooks sell for $8 each, how many have to be sold to break even?

Accepted Answer

To break even, the total revenue from selling the cookbooks needs to equal the total cost of producing them. Let x be the number of cookbooks sold. 
The total cost will be the fixed cost plus the variable cost, which is $3 per cookbook: 
Total cost = $400 + $3x 
The total revenue will be the selling price multiplied by the number of cookbooks sold: 
Total revenue = $8x 
To break even, these two equations must be equal: 
$400 + $3x = $8x 
Simplifying this equation: 
$400 = $5x 
x = 80 
Therefore, 80 cookbooks must be sold to break even.

Question 7

Often, the only real influence that project managers have is __________.

Accepted Answer

Project managers may not always have complete control over resources or the ability to dictate decisions, but they can use their communication skills and powers of persuasion to influence stakeholders and team members to make decisions that will help the project succeed.

Question 8

In order to compute the breakeven point, a manager needs to know the unit price of the product being sold, the variable cost per unit, and __________.

Accepted Answer

The breakeven point is the level of sales at which total revenue equals total costs. In order to calculate this point, the manager needs to know not only the unit price and variable cost per unit, but also the total fixed costs, which are the costs that do not vary with the level of production. Only choice C, total fixed costs, represents this necessary piece of information. The other choices, such as total variable costs or manufacturing costs per unit, are important factors in determining profitability or cost structure, but are not directly related to the breakeven point.

Question 9

Which technique is widely used to help managers make profit projections?

Accepted Answer

Breakeven analysis is widely used to help managers make profit projections by determining the level of sales needed to cover all costs and break even. This technique allows managers to make informed decisions about pricing, production volume, and cost control in order to achieve desired levels of profitability.

Question 10

Krazy Key Chains sell for $1.00 each. If variable costs are $0.50 each and total fixed costs are $2,500, what is the profit if 10,000 units are sold?

Accepted Answer

The answer of Krazy Key Chains sell for $1.00 each....

Question 11

In a PERT network, the critical path is the __________.

Accepted Answer

The critical path in a PERT network is the sequence of events and activities that takes the longest time to complete, therefore it is the most time-consuming path in the project schedule. It is important to identify the critical path because any delay in any of the activities in this path will delay the entire project.

Question 12

Which of the following is a requirement of linear programming?

Accepted Answer

The goal of linear programming must be to optimize or maximize/minimize a certain outcome, such as profit or cost. The other options are not required for linear programming.

Question 13

The intent of scenario planning is to __________.

Accepted Answer

The intent of scenario planning is to reduce uncertainty by playing out potential situations under different conditions. This approach enables decision-makers to design effective contingency plans and prepare for unexpected events. It is not possible to predict random events or events that cannot be anticipated. Contingency plans aim to increase certainty, while scenario planning helps to deal with uncertain situations.

Question 14

Krazy Key Chains sell for $1.00 each. If variable costs are $0.50 each and total fixed costs are $2,500, how many key chains must be sold to break even?

Accepted Answer

To break even, total revenue must equal total costs (fixed + variable). The contribution margin per key chain is $1.00 - $0.50 = $0.50. To cover the fixed costs of $2,500, you need to sell $2,500 / $0.50 = 5,000 key chains.

Question 15

The first step in the project planning process is to __________.

Accepted Answer

Defining objectives is the first step in the project planning process as it sets the direction and purpose of the project. Without clear objectives, it would be difficult to identify activities, resources, sequences, completion dates, and manpower requirements. Therefore, it is essential to define objectives before proceeding with other planning activities.

Question 16

Refer to the scenario below to answer the following questions.
Dave's Doughnuts (Scenario)
Dave Glazer is the owner of Dave's Doughnuts, a five-store chain of doughnut shops located in the Okanagan region of British Columbia. At weekly management meetings, Dave asks each of the five store managers to report on local trends and new customer requests.
-Occasionally, Dave will purchase a popular new doughnut from a competitor and send it to a food laboratory in Vancouver for analysis. The lab provides a breakdown of the ingredients so Dave can learn the competitor's secrets. Dave is engaging in which process?

Accepted Answer

Dave is engaging in reverse engineering, where he purchases a competitor's product and analyzes its ingredients to learn their secrets. This allows him to replicate or improve upon their product for his own business.

Question 17

Which of the following is an example of a fixed cost?

Accepted Answer

Property taxes are a fixed cost because they do not change based on the level of production or sales.

Question 18

If a retail sales manager wants to know how many denim jackets must be sold in order to achieve a specified profit objective, she should use which planning tool?

Accepted Answer

Breakeven analysis is a planning tool that helps determine the quantity of goods that must be sold to cover the company's expenses and break even. By using breakeven analysis, the retail sales manager can calculates the number of denim jackets that must be sold to reach a desired profit objective.

Question 19

The Chilliwack Volunteer Fire Department is selling cookbooks as a fundraiser. Each cookbook costs $3 to produce, and total fixed costs are $400. If the cookbooks sell for $8 each, how many do they have to sell to earn a $5,000 profit?

Accepted Answer

To earn a profit of $5,000, the total revenue needed is:

Total Revenue = Total Cost + Profit

Total Revenue = (Cost per cookbook x Number of cookbooks) + Profit

Total Revenue = ($3 x N) + $5,000

Total Cost = Fixed Costs + Variable Costs

Total Cost = $400 + ($3 x N)

Setting the two equations equal to each other and solving for N:

($3 x N) + $5,000 = $400 + ($3 x N)

$4,600 = $3 x N

N = 1,533.33

Since we can't sell a fraction of a cookbook, we need to round up to the nearest whole number:

N = 1,534

Therefore, they need to sell 1,534 cookbooks to earn a $5,000 profit.

Question 20

If there is a linear relationship between two variables, then a change in one variable must be accompanied by __________ in the other variable.

Accepted Answer

A linear relationship between two variables means that they have a constant slope. This indicates that a change in one variable will always result in an exactly proportional change in the other variable. Therefore, choice B is the best answer.

Quiz 18: Planning and Control Techniques