Management MCQs

Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as

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A. value costs
B. future function costs
C. business function costs
D. sunk function costs
✅ The correct answer is option C.
Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as business function costs. Business function costs are the total sum of all expenses both fixed and variable for a specific step in the value chain. In other words, it’s the total cost associated with each step a product takes from the manufacturer to the consumer.

Investments would grade uppermost with regard to protection is

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A. government bonds
B. common stock
C. preferred stock
D. real estate
✅ The correct answer is option A.
Investments would grade uppermost with regard to protection is government bonds. A government bond is a debt security issued by a government to support government spending. Government bonds can pay periodic interest payments called coupon payments.

BPR means ______.

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A. Business Product Engineering
B. Business Process Engineering
C. Business Product Electronic
D. Business Process Electronic
✅ The correct answer is option B.
BPR means Business Process Engineering. Business Process Reengineering is a strategy that tears down and recreates business processes, with a goal to reduce manufacturing errors and expenses.

Time value of an option is added into intrinsic value to calculate

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A. market index of an option
B. depreciated value of option
C. appreciated value of option
D. price of an option
✅ The correct answer is option D.
Time value of an option is added into intrinsic value to calculate price of an option. The price of an option, called the premium, is composed of a number of variables. Options traders need to be aware of these variables so they can make an informed decision about when to trade an option.

Costs that are planned in future and has not been incurred are known as

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A. designed-in costs
B. locked-in costs
C. value added cost
D. both a and b
✅ The correct answer is option A.
Costs that are planned in future and has not been incurred are known as designed-in costs. Design to cost is the process of reducing cost in the requirements and design phase of a project.

__________ is an example of a service where the customer typically goes to the service organization

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A. House painting
B. A credit card company
C. A taxi service
D. The theatre
✅ The correct answer is option D.
The theatre is an example of a service where the customer typically goes to the service organization. A service club or service organization is a voluntary non-profit organization where members meet regularly to perform charitable works either by direct hands-on efforts or by raising money for other organizations.

Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the

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A. Embroynic stage
B. Growth stage
C. Shakeout stage
D. Maturity stage
✅ The correct answer is option C.
Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the Shakeout stage. Shakeout usually refers to the consolidation of an industry. Some businesses are naturally eliminated because they are unable to grow along with the industry or are still generating negative cash flows.

____________ refers to the strategies and counter strategies of a firm that compete in a shared market place

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A. Retrenchment strategy
B. Competitive gaming
C. Business strategy
D. Corporate strategy
✅ The correct answer is option B.
Competitive gaming refers to the strategies and counter strategies of a firm that compete in a shared market place. Competitive games are those in which players play against one another and where one player winning means another player loses. Two player games are often competitive, with a distinct win-or-lose outcome.

An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of

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A. offshore cost
B. outsource cost
C. in-source cost
D. opportunity cost
✅ The correct answer is option D.
An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.