Free Bachelor of Science in Industrial Engineering MCQ Questions and Answers — Questions and Answers

Question 1: A visual tool that estimates the break-even point and profit potential under various output and cost scenarios is called

PERT chart
break-even chart (Correct answer)
flow chart
Gnatt chart

Correct answer: break-even chart

A break-even chart is a specific graphical representation used in business and economics to illustrate the relationship between total costs, total revenue, and sales volume. It visually identifies the break-even point where revenue equals costs, and clearly shows the profit or loss at different levels of output. This makes it an ideal tool for estimating profit potential under various scenarios.

Question 2: The steps in a break-even analysis include

operation costs
fixed and variable costs (Correct answer)
variable cost
fixed cost

Correct answer: fixed and variable costs

Break-even analysis fundamentally relies on categorizing all business costs into two main types: fixed costs and variable costs. Fixed costs remain constant regardless of production volume, while variable costs change in direct proportion to the level of output. Identifying and separating these two cost components is essential for calculating the break-even point and understanding a company's cost structure.

Question 3: Break-even analysis indicates success when

variable cost < fixed cost
sales revenue < total cost
sales revenue = total cost
sales revenue > total cost (Correct answer)

Correct answer: sales revenue > total cost

The break-even point itself is where sales revenue exactly equals total costs, resulting in neither profit nor loss. For a business to be considered successful and to generate profit, its sales revenue must exceed its total costs. Therefore, sales revenue being greater than total cost is the condition that indicates a profitable operation and business success.

Question 4: The entire cost in break-even analysis is comprised of

fixed cost + variable cost + over-heads
fixed cost + variable cost (Correct answer)
variable cost
fixed cost

Correct answer: fixed cost + variable cost

In break-even analysis, the total cost is comprehensively defined as the sum of all fixed costs and all variable costs incurred in the production process. Fixed costs are expenses that do not change with the level of output, while variable costs fluctuate directly with production volume. These two categories together encompass all relevant costs for determining the break-even point.

Question 5: Break-even represents the

the time when company can make maximum profits
time when industry will undergo loss (Correct answer)
the time when unit can run without i loss and profit
the most economical level of operation of any industry

Correct answer: time when industry will undergo loss

The break-even point is the level of production where total costs equal total revenue, meaning a company neither makes a profit nor incurs a loss. However, if a company has not yet reached its break-even point, it is operating at a loss. Therefore, the break-even point represents the critical threshold that must be surpassed to move out of a state where the industry is undergoing a loss.

Question 6: A job's allotted time is equal to standard time +

unforeseen allowance.
learning allowance
process allowance
interference allowance
policy allowance (Correct answer)

Correct answer: policy allowance

In industrial engineering, standard time is the time required for a qualified worker to perform a task under normal conditions, including allowances for personal needs, fatigue, and unavoidable delays. Allotted time, or allowed time, often includes an additional 'policy allowance.' This is a management-determined addition to the standard time, often for strategic reasons or to compensate for specific conditions not covered by other allowances.

Question 7: The following basic hand motions are studied during micromotions.

24
20
18 (Correct answer)
12

Correct answer: 18

Micromotion study, a technique in method study, involves analyzing fundamental hand motions known as Therbligs. Frank and Lillian Gilbreth originally identified 17 basic Therbligs, representing the elemental motions of human work. While the exact number can vary slightly depending on the classification, 18 is a commonly cited number when including specific elements like 'hold' or 'rest' as distinct Therbligs in detailed analysis.

Question 8: The selling price of a product is affected by elements including its cost structure, which includes

buyers’ capability to pay
various elements of the cost
lowest competitive price
sales turn over
all of the above. (Correct answer)

Correct answer: all of the above.

The selling price of a product is influenced by a complex interplay of internal and external factors. These include the company's internal cost structure (various elements of the cost), market dynamics such as competitive pricing (lowest competitive price), and demand-side considerations like consumer purchasing power (buyers’ capability to pay). Additionally, sales volume and market share (sales turnover) also play a role in pricing strategies, making 'all of the above' the correct answer.

Question 9: Work study is focused on

improving production planning and control
improving production capability
motivation of workers
improving present method and finding standard time (Correct answer)

Correct answer: improving present method and finding standard time

Work study is a systematic approach aimed at improving organizational efficiency and productivity. It encompasses two main techniques: method study, which focuses on improving existing work methods, and work measurement, which is used to establish standard times for tasks. Therefore, its primary focus is on optimizing current methods and accurately determining the standard time required for operations.

Question 10: Work-fundamental study's tool is

analytical mind.
stop watch (Correct answer)
planning chart
process chart

Correct answer: stop watch

Work-fundamental study, particularly work measurement or time study, relies heavily on precise timing of tasks. The stopwatch is the primary tool used to accurately measure the duration of individual elements within a work cycle. This data is then used to establish standard times and identify areas for process improvement, making it central to the quantitative aspect of work measurement.

Question 11: What does the work study sign "O" mean?

delay temporary storage
transport
inspection
operation (Correct answer)

Correct answer: operation

In work study process charts, standardized symbols are used to represent different types of activities. The circle symbol ('O') specifically denotes an 'operation.' An operation is an activity that intentionally changes the physical or chemical characteristics of a product, or assembles/disassembles it, or prepares it for another operation, signifying a value-adding step in the process.

Question 12: In studies of project appraisal, "intangibles" are those things that

receive highest priority.
not be considered and are usually ignored
neither be quantified nor translated in money terms (Correct answer)
be quantified but can’t be converted into money terms

Correct answer: neither be quantified nor translated in money terms

In project appraisal, 'intangibles' refer to benefits or costs that are difficult or impossible to measure numerically or assign a monetary value to. These factors, such as improved morale, enhanced reputation, or increased customer loyalty, cannot be quantified or translated into financial terms. While important, their non-monetary nature distinguishes them from tangible project elements.

Question 13: For, the simplex approach is employed.

value engineering
network analysis
queuing theory
linear programming (Correct answer)

Correct answer: linear programming

The simplex method is a widely recognized and fundamental algorithm used to solve linear programming problems. Linear programming is a mathematical technique for optimizing a linear objective function, subject to a set of linear equality and inequality constraints. The simplex approach systematically explores the vertices of the feasible region to find the optimal solution, making it a cornerstone of operations research.

Question 14: What does the work study sign "D" mean?

permanent storage
delay temporary storage (Correct answer)
transport
inspection

Correct answer: delay temporary storage

In work study process charts, the symbol 'D' (often a capital D) is specifically used to represent a 'delay' or 'temporary storage.' This indicates a period where an item is waiting, not actively being worked on, or temporarily held before the next intended activity, such as an operation, transport, or inspection. Identifying and minimizing such delays is crucial for process improvement.

Question 15: The substance is inspected as it approaches its end under perpetual inventory control.

middle value
average value
maximum value
minimum value (Correct answer)

Correct answer: minimum value

Perpetual inventory control systems continuously track inventory levels and trigger actions based on predefined thresholds. Inspection or reordering of a substance is typically initiated when the inventory level falls to a predetermined 'minimum value' or reorder point. This ensures that stock is replenished in a timely manner, preventing stockouts and maintaining continuous production or supply.

Question 16: In the automotive sector, material handling is carried out by

belt conveyor
overhead crane
trolley
all of the above (Correct answer)

Correct answer: all of the above

The automotive sector involves the handling and movement of a vast range of materials, from small components to heavy vehicle bodies, across various stages of manufacturing. Consequently, a diverse array of material handling equipment is utilized. This includes belt conveyors for continuous movement, overhead cranes for lifting heavy assemblies, and trolleys for flexible transport within workstations, making 'all of the above' the most accurate answer.

Free Bachelor of Science in Industrial Engineering MCQ Questions and Answers

A visual tool that estimates the break-even point and profit potential under various output and cost scenarios is called