The Trip Matrix and the Current Block Plan for a Company

question 189

Multiple Choice

The trip matrix and the current block plan for a company follow. The two cells in the block plan marked with "ES" are empty space. Assume that material is moved according to rectilinear distances and that the distance between adjacent centers is one unit. It costs $1 to move one unit of material over one unit of distance. Trips Between Centers Current Block Plan $$\begin{array} { | l | l | } \hline 1 & 2 \\\hline 4 & \text { ES } \\\hline 3 & \text { ES } \\\hline\end{array}$$ To reduce materials- handling costs, the following revised block plan is being considered.
$$\begin{array} { | l | l | } \hline 1 & 2 \\\hline 4 & 3 \\\hline \text { ES } & \text { ES } \\\hline\end{array}$$
Compute the "total cost" of each plan (current and revised) , along with their cost difference. The total cost savings of changing over to the revised block plan is

• A) less than or equal to 50.
• B) more than 50 but less than or equal to 80.
• C) more than 80 but less than or equal to 110.
• D) more than 110.

Interpret the significance of federal deposit insurance.

Realize the role of banks and other institutions in channeling funds from savers to borrowers.

Understand how to calculate and report gross profit at standard using variances.

Identify when a variance is considered material and the impact on cost control.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple tasks.

Foot-In-The-Door

A persuasion technique where a small request is made first in order to gain compliance for a larger request later.

Door-In-The-Face

A technique in persuasion that involves making a large request that is likely to be refused in order to increase the chances that a person will agree to a smaller request later.

Lowballing

A strategy where an initially favorable offer is made, only to have the terms made less favorable after acceptance.