Production Management and Industrial Engineering - Mechanical Engineering Multiple Choice Questions and Answers for competitive exams

1. A graphical device used to determine the break-even point and profit potential under varying conditions of output and costs, is known as
(a)     Gnatt chart
(b)     flow chart
(c)    break-even chart
(d)    PERT chart  
(e)    Taylor chart.
Ans: c

2. Break-even analysis consists of
(a)    fixed cost
(b)    variable cost
(c)    fixed and variable costs
(d)    operation costs
(e)    none of the above.
Ans: c

3. Break-even analysis shows profit when
(a)    sales revenue > total cost
(b)    sales revenue = total cost
(c)    sales revenue < total cost
(d)    variable cost < fixed cost
(e)    none of the above.
Ans: a

4. In braek-even analysis, total cost consists of
(a)    fixed cost
(b)    variable cost
(c)    fixed cost + variable cost
(d)    fixed cost + variable cost + over-heads
(e)    fixed cost + sales revenue.
Ans: a

5. The break-even point represents
(a)    the most economical level of operation of any industry
(b)    the time when unit can run without i loss and profit
(c)    time when industry will undergo loss
(d)    the time when company can make maximum profits
(e)    time for overhauling a plant.
Ans: c

9. In the cost structure of a product, the sell¬ing price is determined by the factors such as1
(a)     sales turn over
(b)     lowest competitive price
(c)    various elements of the cost
(d)    buyers' capability to pay
(e)    all of the above.
Ans: e

10.    Work study is concerned with
(a)     improving present method and finding standard time
(b)    motivation of workers
(c)    improving production capability
(d)    improving  production planning  and control
(e)    all of the above.
Ans: a

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