Which of the following activities would likely not be a consideration in strategic planning?

A. New product development

B. Capital budgeting

C. Mergers

D. Materials procurement

A firm that is deploying just-in-time manufacturing for the first time will

A. Establish contracts with many suppliers since an interruption in spply is extremely disruptive of the production process.

B. Establish contracts with a few carefully chosen suppliers since an interruption in supply is extremely disruptive of the production process.

C. Maintain a carefully calibrated safety stock since interruption in supply are inevitable.

D. Acquire considerable computer processing capability to manage the demands of the data-dependent kaban inventory management system.

Sales promotion

A. Provides incentives to buy, and advertising provides reasons.

B. Is directed toward consumers, not the trade.

C. Objectives with respect to retailers include motivating them to do more prospecting.

D. Costs have decreased as a percentage of marketing budgets because consumers are less price conscious.

Political risk may be reduced by

A. Entering into a joint venture with another foreign company.

B. Making foreign operations dependent on the domestic parentfortechnology, markets, and supplies.

C. Refusing to pay higher wages and higher taxes.

D. Financing with capital from a foreign country.

The Stewart Co. uses the economic order quantity (EOQ) model for inventory management.A decrease in which one of the following variables would increase the EOQ?

A. Annual sales.

B. Cost per order.

C. Safety stock level.

D. Carrying costs.

A credit card account that charges interest at the rate of 1.25% per month would have an annually compounded rate of (Column 1) and an APR of (Column 2).

Column 1 Column 2

A. 16.08% 15%

B. 14.55% 16.08%

C. 12.68% 15%

D. 15% 14.55%

The modeling technique to be employed in a situation involving a sequence of events with several possible outcomes associated with each event is

A. Cost-benefit analysis.

B. Decision tree analysis.

C. The Monte Carlo method.

D. Linear programming.

"Controllable costs" are

A. Costs which management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers.

B. Costs which are likely to respond to the amount of attention devoted to them by a specified manager.

C. Costs which fluctuate in total in response to small changes in the rate of utilization of capacity.

D. Costs which will be unaffected by current managerial decisions.

A company wants to open a new store in one of three nearby shopping malls. In Mall A. the rent will be $300,000 per year. In Mall B, the rent will be 4% of gross revenues In Man C, rent will be $150,000 per year plus 3% of gross revenues. Assume that revenues and all other elements under consideration are the same for all three malls. What is the maximum level of revenues at which Mall C will be the most desirable of the three options?

A. $149,999

B. $5,000,000

C. $15,000,000

D. Man C will never be the most desirable choice.

Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should you prefer?

A. Option A

B. Option B

C. Option C

D. Option D