A Lesson in Operations Management (Scenario)

question 9

Multiple Choice

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in acco but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the She felt her background with numbers should prove valuable in operations management, but she admitted that she knew littl the field. Until now, she had been in a support staff function and had little feel for how the organization's product went from raw materials to finished product. Hana's first class would be tonight at Central University, and she was excited about the opportunity.
-Hana realized that inputs include which of the following?

• A) accounting reports
• B) sales
• C) motivated employees
• D) capital

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Definitions:

Fixed Asset Turnover Ratio

The number of sales dollars earned per dollar of fixed assets, computed by dividing sales by the average book value of fixed assets.

Labor Intensive

A process or industry that requires a large amount of human labor compared to capital investment.

Fixed Asset Turnover Ratio

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales, calculated by dividing net sales by the net value of fixed assets.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.