2. Process thinking is the traditional way of viewing an organization by function.

A) True

B) False

3. A product that typically lasts at least three years is called a durable good.

A) True

4. Support processes would typically include all but which of the following:

A) Managing inventory

B) Customer help desk operations

C) Research and development

D) Manufacturing and assembly

5. Which one of the following statements is FALSE?

A) service processes are the dominant type of process in the U.S. economy.

B) a telephone customer service representative needs service management skills.

C) a variant is a CBP attribute that departs from the standard CBP and is normally location or
firm-specific.

D) value is a measure of the quantity of the outputs to inputs.

6. Peripheral goods and services are not essential to a primary good or service.

A) True

B) False

7. A golf simulator in a retail sports store is an example of

A) non- durable goods replacing services

B) primary good

C) goods content

D) biztainment

8. All services can be managed much the same as goods in a factory.

A) True

B) False
9. Regarding service encounters, which is not true?

A) May involve more than one moment of truth

B) Should be avoided

C) May involve a company store or building

D) Involve customer perceptions

10. Many products that appear to be only physical goods often include bundled services.

A) True

B) False

11. Which one of the following statements is FALSE?

A) service encounters can be between a customer and a building.

B) services can be stored as inventory for future sale.

C) a hotel room is a perishable asset (service).

D) in the Tuneman case study, the traditional value chain allows for more control by value
chain managers than the Internet-based music downloading value chain.

E) normally patents do not protect services.

12. A value chain begins with the goods and services that are provided to customers.

A) True

B) False

13. A vertical integration strategy provides a firm more control and generally reduces the
complexity of managing the value chain.

A) True

B) False

14. A value chain can be considered a "cradle-to-grave" model of the operations function

A) True

B) False

15. Which one of the following is not normally considered a variable cost?

A) Labor
 B) Transportation

C) Leasing equipment

D) Material

16. In a breakeven analysis, whenever the anticipated volume is greater than the breakeven
quantity, the firm should not outsource.

A) True

B) False

17. From the pre- and post-service view of a value chain, goods and services design, contract
negotiation and consulting services would be considered

A) Pre-production service

B) A production process

C) Post-production service

D) Value creation

18. Operational structure of the value chain deals with

A) Management hierarchy

B) Vertical integration

C) Configuration of resources
 D) Culture

19. In the value chain model for a hospital, patients, drugs and staff would be considered

A) Suppliers

B) Inputs

C) Transformation processes

D) Outputs

20.

A reason for globalization includes shifting work closer to customers for fast delivery and
customization.

A) True

B) False

21. Which of the following statements is TRUE.

 A) pre- and post-production services complete the ownership cycle for the good or service.

B) using the framework of the input-output model of a value chain the following are inputs
for a hospital − beds, accurate bills, patients, and knowledge.

C) Ford Motor Company found in a customer survey study that the total value of owning one
of their vehicles across all market segments was allocated as followsthe vehicle itself
accounted for 85 percent of total value, the sales process for 5 percent, and the post-production
services such as repair processes for 10 percent.

D) a value chain is a narrower concept than a supply chain and a value chain focuses more
on the physical movement of goods, not services.

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