Question

1. Which of the following would have a positive effect on the customer survey score?

A. Reduced automation

B. Reduced Price

C. Reduced MTBF

D. Reduced marketing spending

2. Which of the following is true regarding accounts payable?

A. Suppliers prefer more days in accounts payable

B. Customers prefer fewer days in accounts payable

C. Customers prefer more days in accounts payable

D. Suppliers prefer fewer days in accounts payable

3. Which of the following are impacted by changes in automation?

A. Labor costs and R&D times

B. Labor cosrs and plant utilization

C. R&D times and material costs

D. Material costs and plant utilization

E. None of the above

Answer 1

Answer 1)

Customer survey score increases if the prices are low or at the bottom of the expected range.

It also increases if the product is better(more automated), high MTBF(mean time before failure) duration, and more awareness(more market spending).

So the and is b) reduced prices.

Answer 2)

Suppliers are those from which the business buys raw material/product and sell the finished goods to customers.

The business owes money to suppliers and it receives money from its customers.

Accounts payable is the amount due to suppliers and hence they would require/prefer fewer days in accounts payable.

So the answer is d) suppliers prefer fewer days in accounts payables.

Answer 3)

Labor costs and R&D times are impacted by changes in automation.

Higher the automation level, more difficult it will be for the company to adjust its R&D cycle and the level of automation affects labor costs.

So the answer is a) Labor costs and R&D times