Liaoning Technical University Test Paper（A）

2022 － 2023 Year 1 Semester Course Name： Management Science and Foundation

Major/Class: Mechanical Engineering Class 2 Exam Mode: Close Book

Time：90 minutes Total 4 pages, 17 questions Signature of teacher:

Part I Choice (There are 10 questions, 2 points for question, 20 points in total)

1. Depending on the weather and the amount of advertising, Kyle has developed six scenarios for his summer

profits from his lawn care business. His business has failed to reach his expectations in the past, so he fears the

worst. Kyle will likely choose the option that ________.

A) maximizes the maximum possible payoff

B) maximizes the minimum possible payoff

C) minimizes the maximum regret

D) minimizes the minimum losses

2. Sophie is in charge of recruitment at her company. During a particular interview, the first thing Sophie noticed

about the applicant was that he was improperly attired. Though the candidate possessed the necessary

qualifications and effectively answered all her questions, Sophie rejected him. This is an example of the

________.

A) availability bias B) self-serving bias

C) anchoring effect D) confirmation bias

3. Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its

production process. He is most likely to order from ________.

A) a company within the European Union because there would be no barriers to trade

B) a company in the United States because we have the same quality as any European company

C) a company in Switzerland because the Swiss are known for their fine detail work

D) a company in Asia because labor is cheaper there

4. Melanie would like to become a part of the global retail community. Which of the following options should

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Melanie consider as her first step?

A) She should engage in global sourcing.

B) She should engage in licensing.

C) She should engage in franchising.

D) She should develop strategic alliances with foreign companies.

5. An increase in the diversity of his department has led to conflict and animosity. To reduce this and allow his

team to become more productive, Lemuel has asked the Human Resources department to provide ________ for

his people.

A) survey feedback B) sensitivity training

C) team building D) intergroup development

6. Earnest's team works well when given "big picture" goals and allowed to develop ideas without detailed

explanations or guidance. This would indicate Earnest's team is ________.

A) tolerant of conflict B) an open-system focus team

C) tolerant of risk D) accepting of ambiguity

7. Wilson is offered a chance to help direct the efforts of some employees assigned to his work group. This is a

chance for Wilson to experience ________.

A) responsibility B) leadership

C) command D) authority

8. After extensive job cuts to reduce costs, upper level managers are spending significant amounts of time solving

problems in the production units. Lower level managers are resentful that they cannot make decisions for their

own units. What recommendation would you make for this firm?

A) Reorganize; departmentalize around customers instead of products.

B) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't have to decide

each case individually.

C) Centralize; create a department that does nothing but make decisions.

D) Decentralize; give authority to the lower level managers regarding events in their own units.
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9. BarNone is an electronic engineer's dream job. There are no departments, no chain of command. Employees

find a team working on something they find interesting and to which they can contribute and stay with that team

until the work is done then they move on to another team. BarNone uses a ________ structure.

A) team B) project

C) matrix D) boundaryless

10. The company is known for its auto insurance but its customers would be surprised to learn how few regular

employees the company has. Most work from home or from their own offices and only when the insurance

company has projects for them. This company is most likely a ________.

A) boundaryless organization B) virtual organization

C) network organization D) learning organization

Part II Essay Problems (There are 3 questions, 10 points for question, 30 points in total)

11. Will planning become more or less important to managers in the future? Why?

12. Discuss the traditional and contemporary views of each of the six key elements of organizational design.

13. “Every individual employee in an organization plays a role in controlling work activities.” Do you agree

with this statement, or do you think control is something that only managers are responsible for? Explain.

Part III Calculation Problems (There are 3 questions, 10 points for question, 30 points in total)

14. A company produces a toy. The fixed cost is ＄10,000 per month, and the variable cost is ＄8 per unit. The

selling price per unit is p = ＄80 − 0.02(D).

(1)determine the optimal volume for this toy and confirm that a profit occurs at this demand？

(2)find the volume at which breakeven occurs, what is the range if profitable demand?

15. A consulting firm measures its output in a standard service hour unit, which is a function of the personnel

grade levels in the professional staff. The variable cost is ＄60 per service hour. The selling price is ＄80 per

hour. The maximum output of the firm is 160,000 hours per year, and its fixed cost is ＄2,000,000 per year.

(1)what is the breakeven point in standard service hours and in percentage of total capacity?

(2)what is the percentage reduction in the breakeven point if fixed costs are reduced 10%; if variable cost per hour

is reduced 10%; and if the selling price per unit is increased by 10%?

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16. A contractor has a choice of two sites on which to set up the asphalt-mixing plant equipment. The contractor

estimates that it will cost ＄3 per cubic yard mile to haul the asphalt-paving material from the mixing plant to the

job location. Factors relating to the two mixing sites are as follows:
Cost Site A Site B
average hauling distance 4 miles 3 miles
monthly rental of site ＄2,000 ＄6,000
cost to set up and remove equipment ＄20,000 ＄50,000
hauling expense ＄3/cubic yard mile ＄3/cubic yard mile
flagperson not required ＄150/day

The job requires 50,000 cubic yards of mixed-asphalt-paving material. It is estimated that four months(17 weeks

of five working days per week) will be required for the job. Compare the two sites in terms of their fixed, variable

and total costs. Which is the better site? For the better site, how many cubic yards of paving material does the

contractor have to deliver before starting to make a profit if paid ＄12 per cubic yard deliverd to the job location?

Part IV Comprehensive Problems (There are 1 question, 20 points in total)

17. As a mechanical engineering student, why do you need to study the basic theory of engineering economy?

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