Test Bank for OM 5 - Multiple Choice 1. The three issues that are at...

Test Bank for OM 5 5 th Edition By David Alan Collier, James Evans (All Chapters 1-18, 100% Original Verified, A+ Grade) 1 / 4

OM5 C1

Test Bank

1 Chapter 1 – Goods, Services, and Operations Management

Multiple Choice

• The three issues that are at the core of operations management include all of the following

EXCEPT _____.

• cost
• quality
• tangibility
• efficiency

ANS: C

• Which of the following key activities is NOT performed by operations managers?
• Purchasing
• Cost accounting
• Forecasting
• Service encounter design

ANS: B

3. An operations manager is expected to perform several key activities EXCEPT:

• coordinating the acquisition of materials, supplies, and services.
• determining when resources should be assigned to work.
• managing cash flow and strategic investments.
• making use of technology to improve productivity.

ANS: C

• Which of the following statements is NOT true of goods and services?
• Service encounters can be between a customer and a service provider.
• Services cannot be stored as inventory for future sale.
• A shoe is a durable good that provides a service.
• Normally, patents do not protect services.

ANS: C

• Computer software is an example of a _____.
• tangible product
• nondurable good
• service
• value creation process

ANS: B

• Identify the statement about goods and services that is NOT true? 2 / 4

OM5 C1

Test Bank

2

• Services that do not involve significant interaction with customers can be managed much

the same as goods in a factory.

• A service is any primary or complementary activity that does not directly produce a

physical product.

• Some very significant differences exist between goods and services that create different

demands on the operations function.

• Designing and managing operations in a goods-producing firm is quite similar to that in a

service-providing organization.

ANS: D

• Which of the following statements about goods and services is TRUE?
• The demand for services is independent of time.
• A durable good is a product that typically lasts for less than three years.
• A good example of a nondurable good is furniture.
• A service encounter can consist of one or more moments of truth.

ANS: D

• Identify a FALSE statement about goods and services.
• Service encounters can be between a customer and a service provider.
• The demand for services is time-dependent, especially over the short term.
• There is no way to recapture the lost revenue from a hotel room.
• A moment of truth is a feature a customer recognizes, pays for, or uses.

ANS: D

• Which of the following jobs requires the most service management skills and knowledge?
• Airplane mechanic
• Usher at sports stadium
• Restaurant cook
• Airline Flight attendant

ANS: D

• Which of the following statements about goods and services is FALSE?
• Service encounters can be between a customer and a service provider.
• Demand for physical goods is more difficult to predict than demand for services.
• Services cannot be stored as physical inventory for future sale.
• Normally, patents do not protect services.

ANS: B

• Which of the following statements is NOT true regarding the differences between goods and

services?

• Demand for services is easier to forecast.
• Customers participate in many services. 3 / 4

OM5 C1

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3

• Services cannot be stored as physical inventory.
• Patents do not protect service processes.

ANS: A

• Which of the following statements about goods and services is FALSE?
• Service encounters are interactions between customers and service providers.
• Services can be stored as physical inventory for future sale.
• Goods are tangible, while services are intangible.
• The demand for service is more difficult to predict than the demand for goods.

ANS: B

• Service management skills include all of the following EXCEPT _____.
• accounting and finance
• knowledge and technical expertise about operations
• marketing and cross-selling skills
• human interaction skills

ANS: A

• Which of the following statements is TRUE of service facilities?
• They are in close proximity to customers.
• They rely on physical inventory.
• They take advantage of patents.
• They are located close to raw materials, suppliers, and labor.

ANS: A

• Which of the following statements is TRUE of goods and services?
• A variant is always a durable good with new features.
• An automobile is a nondurable good.
• Demand for goods is more difficult to predict than demand for services.
• Normally, patents do not protect services.

ANS: D

• A customer benefit package (CBP) includes _____.
• only core offerings
• only peripheral offerings
• either core or peripheral offerings but not both
• both core offerings as well as peripheral offerings

ANS: D

• Which one of the following statements is TRUE regarding a customer benefit package (CBP)?
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