IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1231:

  A statement that "80% of our profits come from 20% of our products" is an example of the application of

  A. Pareto analysis

  B. Benchmarking

  C. Value chain analysis

  D. Life-cycle costing

  Correct Answer: A

  Pareto analysis assumes that 80% of results are caused by 20% of people or events.

• Question 1232:

  Using the information collected, the organization should focus on the

  A. Total number of personal computer complaints that occurred.

  B. Number of computer complaints associated with CD problems and new software usage.

  C. Number of computer complaints associated with the lack of user knowledge and hardware problems.

  D. Costs to alleviate all computer complaints.

  Correct Answer: C

• Question 1233:

  The chart displays the

  A. Arithmetic mean of each computer complaint

  B. Relative frequency of each computer complaint.

  C. Median of each computer complaint.

  D. Absolute frequency of each computer complaint.

  Correct Answer: D

  This Pareto diagram depicts the frequencies of complaints in absolute terms. It displays the actual number of each type of complaint.

• Question 1234:

  Which of the following is not an appropriate time measure for use in process analysis?

  A. Product development time.

  B. Breakeven time.

  C. Customer-response time

  D. Process value time

  Correct Answer: D

  The three common time measures for process analysis are product development time, breakeven time, and customer-response time. Process value time is not a meaningful term in this context. An organization has collected data on the complaints made by personal computer users and has categorized the complaints.

  

• Question 1235:

  Which of the following is not a type of process?

  A. Make-to-stock.

  B. Make-to-order.

  C. Buffer

  D. Hybrid

  Correct Answer: C

  A buffer in the context of process analysis is a quantity of work-in-process inventory that allows some stage(s) of the overall process to continue operating when an earlier stage breaks down.

• Question 1236:

  Which of the following is not a phase in a value-chain analysis?

  A. Identify activities that are candidates for cost reduction.

  B. Identify ways to generate additional customer value.

  C. Identify means for improving product cost efficiency.

  D. Identify the firm's competitive advantage.

  Correct Answer: C

  The second step in a value-chain analysis is to determine how each value-creating activity can produce a competitive advantage for the firm. This step has multiple substeps:

  (1) Identify the firm's competitive advantage (e.g., cost reduction, product differentiation) so that the firm's position in the industry's value chain can be clarified. (2) Identify the ways in which the firm's value-creating activities can generate additional customer value. (3) Identify activities that are candidates for cost reduction or, in the case of non-core competencies, outsourcing. (4) Identify value-adding ways in which the firm's remaining activities can be linked.

• Question 1237:

  The flow of materials and services from the original sources to final consumers is the

  A. Value chain

  B. Product chain

  C. Supply chain

  D. Value process

  Correct Answer: C

  The supply chain usually encompasses more than one firm. Firms seeking to improve performance and reduce costs must analyze all phases of the supply chain as well as the value chain.

• Question 1238:

  Which of the following is not a component of the value chain?

  A. Primary activities

  B. Secondary activities

  C. Support activities

  D. The product

  Correct Answer: B

  The value chain is a model for depicting the way in which every function in a company adds value to the final product. Primary activities deal with the product directly. Support activities lend aid to the primary activity functions.

• Question 1239:

  The term referring to the excess of the price of a good over its cost is

  A. Consumer surplus

  B. Profit margin

  C. Contribution margin

  D. Value-added transfer

  Correct Answer: B

  To remain in the market, a product must provide value to the customer and a profit to the seller. The producer's profit (profit margin) is the difference between its costs and the price it charges for the product.

• Question 1240:

  Gram Co. develops computer programs to meet customers' special requirements. How should gram categorize payments to employees who develop these programs?

  Direct Costs Value-Adding Costs

  A. Yes Yes

  B. Yes No

  C. No No

  D. No Yes

  Correct Answer: A

  Direct costs may be defined as those that can be specifically associated with a single cost object and can be assigned to it in an economically feasible manner. Wages paid to labor that can be identified with a specific finished good are direct costs. Value-adding costs may be defined as the costs of activities that cannot be eliminated without reducing the quality, responsiveness, or quantity of the output required by a customer or by an organization, Clearly, the amounts paid to programmers add value to computer programs.