D215 - Auditing | OA Practice

Question 21: What is the difference between horizontal and vertical integration?

Horizontal integration is acquiring competitors, while vertical integration is acquiring suppliers or distributors

Vertical integration involves acquiring competitors, while horizontal integration involves expanding into different industries

Horizontal integration is about improving customer relations, while vertical integration is about improving product quality

Vertical integration focuses on market expansion, while horizontal integration focuses on cost reduction

Question 22: What is an assignable cause of variation?

A variation that occurs randomly and cannot be controlled

A variation that can be identified and eliminated

A variation due to external economic factors

A variation caused by machine malfunction alone

Question 23: What is backward scheduling used for?

To determine when a job should start to meet a due date

To schedule jobs in reverse order of priority

To avoid unnecessary overtime

To manage equipment downtime

Question 24: What is the purpose of a checklist in quality management?

To track employee performance

To list common defects and the frequency of their occurrence

To schedule regular maintenance

To track the delivery of goods

Question 25: What does capacity utilization measure?

The maximum output possible under ideal conditions

The actual amount of capacity used compared to available capacity

The cost of production compared to profits

The amount of downtime between shifts

Question 26: What does the term 'backward scheduling' refer to?

Scheduling that starts with the earliest available date

Scheduling that moves jobs to an earlier start date

Scheduling that determines the latest possible start date for completion

Scheduling that prioritizes job flexibility over deadlines

Question 27: What is a 'capacity focus'?

A broad approach to handling various production objectives

A narrow approach targeting small, specialized facilities

A focus on maximizing output regardless of resources

A method of allocating resources equally across departments

Question 28: What does 'capacity utilization' measure?

The total number of employees used per unit produced

The percentage of available capacity that is actually being used

The maximum potential output of a company

The proportion of output delivered to customers

Question 29: Which of the following best describes a 'finite loading' scheduling system?

It schedules work centers without any limit on capacity

It limits work based on available capacity at each center

It schedules jobs based on maximum production output

It ignores resource limitations in scheduling

Question 30: What does 'infinite loading' involve in production scheduling?

Scheduling without considering available capacity

Scheduling that limits tasks based on machine availability

Ensuring jobs start as soon as resources are available

Scheduling work only after analyzing all possible delays

Question 31: What is 'throughput time'?

The time it takes for a product to reach the consumer

The time it takes to manufacture a product from start to finish

The total time from the arrival of materials to the final product's storage

The time taken for a product to be shipped to the warehouse

Question 32: What is the 'bottleneck' in a process flowchart?

The longest task that delays the overall process

The shortest task that speeds up the process

The step where the most employees are assigned

The part of the process that is most expensive

Question 33: What is 'job design' in operations management?

A process that focuses on improving overall profitability

A process of specifying work activities for employees

A system for distributing managerial tasks

A methodology for determining production schedules

Question 34: Which of the following is a characteristic of 'just-in-time' systems?

Keeping large inventories to meet demand

Reducing waste and inventory levels

Prioritizing product diversification

Producing goods in anticipation of future orders

Question 35: What is the purpose of 'ERP (Enterprise Resource Planning)' systems?

To control the flow of goods between suppliers and customers

To integrate all departments and functions across a company into a single system

To plan production schedules based on forecasted demand

To manage external suppliers and transportation logistics

Question 36: What is meant by 'material requirement planning (MRP)'?

A system that schedules and monitors workforce activities

A system that focuses on allocating resources for customer service

A system that determines the quantity and timing of material needs

A system for managing employee performance reviews

Question 37: What does 'observed time' refer to in process management?

The time taken to complete a task under standard conditions

The time recorded by supervisors during an activity

The actual time it takes for a worker to complete a task

The time it takes for materials to reach the production floor

Question 38: What is the key difference between 'periodic' and 'perpetual' inventory systems?

Periodic systems track inventory continuously, while perpetual systems use regular updates

Periodic systems update inventory continuously, while perpetual systems rely on physical counts

Perpetual systems continuously update inventory, while periodic systems rely on regular physical counts

Perpetual systems are used for small businesses, while periodic systems are for larger enterprises

Question 39: What is a 'scatter diagram'?

A graph that shows the relationship between two variables

A diagram used to display project timelines

A chart that organizes work schedules by time

A flowchart that shows all steps of a process

Question 40: What is the final stage of the project life cycle?

Conception

Execution

Planning

Termination

D215 Auditing - Set 3 - Part 2