Topics: Costs, Variable cost, Marginal cost Pages: 24 (1285 words) Published: November 17, 2012
Northern Caribbean University
Department of Professional and Continuing Education
Mandeville Campus
Quiz I

MULTIPLE CHOICE. Total marks 30
Instruction: Write the most appropriate response on line provided

1)

Administrators at a university will charge students \$150 to attend a seminar. It costs \$3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs \$25 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even?

1)

_______

A)

30

B)

18

C)

24

D)

16

E)

20

2)

Linear mathematical programming techniques assume that all parameters in the models are

2)

_______

A)

predictable

B)

unknown

C)

known with certainty

D)

unpredictable

3)

Which steps of the management science process can either be a recommended decision or information that helps a manager make a decision?

3)

_______

A)

problem formulation

B)

model construction

C)

model solution

D)

problem definition

E)

model implementation

4)

Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model?

4)

_______

A)

a decision variable.

B)

an objective function.

C)

a constraint.

D)

data

E)

a parameter.

5)

Which one of the following management science methods is not a probabilistic technique?

5)

_______

A)

statistical analysis

B)

queuing analysis

C)

assignment models

D)

decision analysis

6)

If the price decreases but fixed and variable costs do not change, the break even point

6)

_______

A)

remains the same

B)

decreases

C)

may increase or decrease, depending on sales

D)

increases

7)

The indicator that results in total revenues being equal to total cost is called the

7)

_______

A)

marginal volume

B)

break-even point

C)

marginal cost

D)

profit mix

8)

The result of an effective decision making process should be monitored in order to

8)

_______

A)

insure the achievement of desired results

B)

reveal errors in the implementation

C)

reveal wrong assumptions

D)

all of the above

9)

The management science process does not include

9)

_______

A)

implementation

B)

problem definition

C)

feedback

D)

information

E)

subjective preference

10)

Classification of management science techniques does not recognize

10)

______

A)

linear mathematical programming

B)

network techniques

C)

probabilistic techniques

D)

computer programming

11)

Which one of the following techniques is not a mathematical programming technique?

11)

______

A)

analytical hierarchy process

B)

linear programming models

C)

integer linear programming technique

D)

transportation models

E)

goal programming

12)

The processes of problem observation

12)

______

A)

cannot be done until alternatives are proposed

B)

is the final step of problem solving

C)

is the first step of decision making

D)

requires consideration of multiple criteria

13)

If fixed costs increase, but variable cost and price remain the same, the break even point

13)

______

A)

decreases

B)

remains the same

C)

increases