IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1261:

  Topcon Company produces two components:A-1and A-2.The unit throughput contribution margins for A-1 and A-2 are $150 and $300.respectively. Each component must proceed through two processes: Operation 1 and Operation 2.The capacity of Operation 1 is 180 machine hours, with A-1 and A-2 requiring 1 hour and 3 hours, respectively .Furthermore.Tocon can sell only 45 units of A-1 and 100 units of A-2 However, Taconic considering expanding Operation 1's Capacity by 90 machine hours at a cost of $80 per hour. Assuming that Operation 2 has sufficient capacity to handle any additional output from Operation 1, Toucan should produce. Units of A-1 Unties of A-2

  A. 180 0

  B. 45 100

  C. 45 75

  D. 0 60

  Correct Answer: C

  A-1's throughput contribution margin per unit of the scarce resource (the internal binding constraint) is $150($150 UCM + 1machining hour) A-2's throughput contribution margin per unit of the scarce resource is $100($300 UCM + 3 machine hours). Consequently, Topcon should produce as much A-1 as it can sell (45 units).If Topcon adds 90 machine hours to increase the capacity of Operation 1 to 270 hours(108+90), it cannot produce assertion units do A-1 because the external binding constraint has been not been relaxed.However,it can produce additional units of A-2 Given that the UCM per machine hour of A-2 is $100 and that the cost is $80 per hour adding capacity to Operation 1 is profitable.Thus,tocon should use 45 machine hour to produce 45 units of A-1 The remaining 225 machine hours (270-45) should be used to produce 75 units (225+ 3 hours) of A-2 The latter amount is within the external binging constraint.

• Question 1262:

  Below are data conceding the hours spent by a manufacture's two products in its tow processes: Assembly Painting Product A 21 14 Product B 32 8

  The constraint is

  A. Product A

  B. Product B in Assembly

  C. The assembly activity

  D. Cannot be determined form the information given.

  Correct Answer: C

  In theory of constraints (TOC) analysis, the constraint (bottleneck) operation is the slowest part of the process. It can usually be identified as the one where work-in-Process backs up the most of this manufacturer's two operations, the one that requires the most total time is assembly.

• Question 1263:

  A manufacturer can sell its single product for $660.Below are the cost data for the product: Direct Materials $170 Direct Labor 225 Manufacturing Overhead 90

  The relevant margin amount when beginning a theory of constrains (TOC) analysis is

  A. $490

  B. $345

  C. $265

  D. $175

  Correct Answer: A

  A theory of constraints (TOC) analysis proceeds from the assumption that only direct materials costs are truly variable in the short run. This is Called throughput .or super variable, costing The relevant margin amount is throughput margin, Which equals price minus direct materials. Thus, the relevant margin amount for this manufacturer is $490 ($660-$170).

• Question 1264:

  The immediate goal of a theory of constraints (TOC) analysis is to

  A. Maximize the efficiency of the entire production process.

  B. Minimize direct materials cost

  C. Maximize contribution margin through the constraint.

  D. Smooth production flow to eliminate backup in the system.

  Correct Answer: C

  A basic principle of TOC analysis is that short-term profit maximization requires maximization the contribution margin through the constraint, called the throughput margin or throughput contribution

• Question 1265:

  Under throughput costing, the only cost considered to be truly variable in the short run is

  A. Direct materials.

  B. Direct Labor

  C. Manufacturing overhead.

  D. all manufacturing costs are considered variable.

  Correct Answer: A

  Is Correct. Throughput costing, also called super variable costing, recognizes one direct materials costs as being truly variable and thus relevant the calculation of throughput margin.

• Question 1266:

  Starr Company uses material requirements planning (MRP) and manufactures a product with the following product structure tree.

  

  Starr has just received an order for 100 units of X, the finished product. The company has 20 units of X, and 50 units of E in inventory. How many units of E must Starr Starr purchase in order to fill the order?

  A. 1,000

  B. 830

  C. 800

  D. 550

  Correct Answer: D

  Is correct. Starr already has 20 units of the finished product in inventory so 80 will need to be manufactured to fill this order. The amount of subunit B that must be purchased is [(80* 5 )-100 on hand ] =300. The amount of Subunit E that must be Purchased is therefore [(300* 2)-50 on hand] =550.

• Question 1267:

  Which of the following os not a goal of materials requirements planning?

  A. Right part

  B. Right quantity

  C. Right customer

  D. Right time

  Correct Answer: C

  The three basic goals of MRP are the right part in the right quantity at the right time.

• Question 1268:

  One reason to outsource is so a firm can focus on its

  A. Customers

  B. Suppliers

  C. Undifferentiated activities

  D. Core competencies

  Correct Answer:

  Firms may gain a competitive advantage by outsouricing those activities which can be performed more efficiently,and thus at lower cost,by outside providers.doing this allow the company to expend its effort on those activities which it performs comparatively well,referred to as its core competencies.

• Question 1269:

  Which of the following is not a typical benefit of an outsourcing arrangement?

  A. Reduced costs.

  B. Access to technology

  C. Avoidance of risk of obsolescence

  D. Increased control over a necessary function.

  Correct Answer: D

  Outsourcing results in a loss of control over the outsourced function

• Question 1270:

  The manufacturing concept that relates demand forecasts to specific dates for completion is A. Master production schedule

  B. Materials requirements planning

  C. Manufacturing resource planning

  D. Bill of materials

  Correct Answer: A

  The yearly/quarterly/monthly numbers and styles of finished goods called for in the demand forecasts included in the operational plans must turned into specific for completion and availity for shipment to the customer.this is the task of the master production schedule(MPS)