The University of Manila

College of Business Administration and Accountancy

Integrated CPA Review and Refresher Program
Evaluation Exam
Management Science (AE 4)

1. In management process, the most misinterpreted word is

a. Organizing b. Delegating c. Controlling d. Planning

2. The department(s) that an event management company will have is (are)

a. Creative b. Production c. Client Servicing d. All of the above

3. Who said, “management is a multiple purpose organ that manages a business, manages a manager and manages workers and work”?
a. Harold Konntz b. Peter Drucker c. Kenneth O’Donell d. Anonymous

4. Under mechanism of scientific task setting includes:

a. Time study b. Motion study c. Method study d. All of the above

5. Management as a discipline is the functionof ________.

a. Science b. Art c. Creativity d. All of the above

6. Which theory assumes that people are naturally lazy and will avoid work and responsibilities if possible?
a. Theory X b. Theory Y c. Theory Z d. None of the above

7. Who is the person you have to give importance under the company’s checklist before making call to the consultant.
a. Managers b. Employees c. Customer d. All of the above

8. What is one of the most significant inhibitors in customer preference while purchasing perishable items in retail?
a. Proximity of markets b. Customer preference to brands c. Both (A) and (B) d. None of the above

9. The objectives in corporate governance are

a. Growth b. Stability c. Shareholders value maximization d. All of the above

10. The word _______denotes a function, a task, a discipline.

a. Management b. Leadership c. Motivation d. None of the above

11. Which of the following is the most effective way to encourage ethical behavior in your organization.
a. Clearly laying out expected behavior in a written policy or code of ethics
b. Making sure top management set clear examples of ethical behavior
c. Punishing those who act unethically
d. None of the above

12. Legitimate measures taken by management to make a business look as strong as possible at the balance sheet date is called:
a. Objectivity Principle b. Window dressing c. Cost Principle d. None of the above

13. DuPont Analysis is the combination of the following two ratios:

a. Profit Margin x Total Asset T/O c. Profit Margin x Current Asset T/O
b. Net income x Fixed Asset T/O d. None of the above

14. Management is a function of planning, organizing, controlling leading and staffing.

a. Management is function of activities and tasks c. Management is doing things according to rules and regulation
b. Management is just leading d. None of the above

15. A vertical supply curve may be described as:

a. Relatively price elastic c. Perfectly price inelastic
b. Relatively price inelastic d. None of the above

16. A Kirachi city police department is contemplating the purchase of an additional petrol car. Police analysts estimate the purchase cost of a fully
equipped car(subcompact, but high powered) to be Rs 18,000. They also have estimated an average operating cost of Rs 0.40 per kilometer.
What are project total costs if the car is driven 50,000 miles during its lifetime?
a. Rs 58,000 b. Rs 48,000 c. Rs 38,000 d. None of the above

17. A multiple-choice quiz has 200 questions, each with 4 possible answer of which only 1 is the correct answer. What is the probability that sheer
guesswork yields from 25 to 30 correct answers for 80 0f the 200 problems about which students has no knowledge?
a. 0.1090 b. 0.1196 c. 0.1086 d. None of the above

18. The popular term for the software component that supports the collaborative efforts of a term is
a. Videoconferencing software c. Work flow automation software
b. Groupware d. None of the above

19. Cognitive dissonance refers to:

a. Poor musical performance c. Pavlov’s Nobel winning discovery
b. May be having to say “I am sorry I did it” d. None of the above

20. The maximization or minimization of a quantity is the

a. Goal of management science c. Decision for decision analysis
b. Constraint of operations research d. Objective of linear programming
21. Decision variables
a. Tell how much or how many of something to produce, invest, purchase, hire, etc.
b. Represent the values of the constraints.
c. Measure the objective function
d. Must exist for each constraint

22. Which of the following statement is NOT true?

a. A feasible solution satisfies all constraints.
b. An optimal solution satisfies all constraints.
c. An infeasible solution violates all constraints
d. A feasible solution point does not have to lie on the boundary of the feasible region

23. A solution that satisfies all the constraints of a linear programming problem eccept the non negativity constraints is called
a. Optimal b. Feasible c. Infeasible d. Semi-feasible

24. Slack
a. Is a difference between the left and right sides of a constraints
b. Is the amount by which the left side of a £ constraint is smaller than the right side
c. Is the amount by which the left side of a ³ constraint is larger than the right side
d. Exists for each variable in a linear programming problem

25. Which of the following special cases does not require reformation of the problem in order to obtain a solution?
a. Alternate optimality b. Infeasibility c. Unboundedness d. Each case requires a reformation

26. The improvement in the value of the object function per unit increase in a right-hand side is the
a. Sensitivity value b. Dual price c. Constraint coefficient d. Slack value

27. Infeasibility means that the number of solutions to the linear programming models that satisfies all constraints is
a. At least 1. b. 0. C. An infinite number d. At least 2.

28. A constraint that does not effective the feasible region is a

a. Non-negativity constraint b. Redundant constraint c. Standard constraint d. Slack constraint

29. All linear programming problems have all of the following properties EXCEPT
a. A linear objective function that is to be maximized of minimized c. A set of linear constraints
b. Alternative optimal solutions d. Variable that are all restricted to non negative value

30. An algebraic method such as the simple method are used to solve
a. Nonlinear programming problem c. Any size linear programming problem
b. Programming problem under uncertainty d. Graphical models

31. The basic solution to a problem with three equation and four variable would assign the value of 0 to
a. 0 variables b. 1 variable c. 3 variables d. 7 variables

32. A basic solution and a basic feasible solution

a. Are the same thing c. Differ in the number of variables allowed to be zero
b. Describe interior points and exterior points, respectively d. Differ in their inclusion of non-negativity restrictions

33. When a set of simultaneous equations has more variables than constraints
a. It is a basic set b. It is a feasible set c. There is a unique solution d. There are many solutions

34. Unit columns are used to identify

a. The tableau b. The c row c. The b column d. The basic variables

35. Which of the following is not a step that is necessary to prepare a linear programming problem for solution using the simplex method?
a. Formulate the problem
b. Set up the standard form by adding slack and/or subtracting surplus variables
c. Perform elementary row and column operations
d. Set up the tableau form

36. A minimization problem with four decision variables, two-greater-than or-equal-to constraints, and one equality constraint will have
a. 2 surplus variables, 3 artificial variables, and 3 variables in the basic
b. 4 surplus variables, 2 artificial variables, and 4 variables in the basic
c. 3 surplus variables, 3 artificial variables, and 4 variables in the basic
d. 2 surplus variables, 2 artificial variables, and 3 variables in the basic

37. In the simplex method, a tableau is optimal only if all cj – zj value aressss
a. Zero or negative b. Zero c. Negative and nonzero d. Positive and nonzero

38. When there is a tie between two or more variables for removal from the simplex tableau
a. Post-optimality analysis is required c. Their dual prices will be equal
b. Converting the pivot element will break the tie d. A condition of degeneracy is present

39. An alternative optimal solution is indicated when in the simplex tableau

a. A non-basic variable has a value of zero in the cj – zj row c. A basic variable has a positive value in the cj – zj row
b. A basic variables has a value of zero in the cj – zj row d. A non-basic variable has a positive value in the cj – zj row

40. A simulation model uses the mathematical expressions and logical relationships of the
a. Real system b. Computer system c. Performance measures d. Estimated inferences

41. Values for the probabilistic inputs to a simulation

a. Are selected by the decision maker c. Are controlled by decision maker
b. Are randomly generated based on historical information d. Are calculated by fixed mathematical formulas
42. The quantity that is difficult to measure with certainty is called a
a. Risk analysis b. Project determine c. Probabilistic input d. Profit/loss process

43. The number of units expected to be sold is uniformly distributed between 300 and 500. If r is a random number between o and 1, then the proper
expression for sales
a. 200 (r) b. R + 300 c. 300 + 500 (r) d. 300 + r(200)

44. If customer 2 has a service time of 1.6, and if customer 3 has an interval time of 1.1 and a service time of 2.3, when will customer 3’s service be
completed?
a. 5.0 b. 3.9 c. 3.4 d. There is not enough information to answer

45. In order to verify a simulation model

a. Compare results from several simulation languages c. Be sure that the procedures for calculations are logically correct
b. Confirm that the model accurately represents the real system d. Run the model long enough to overcome initial start-up results

46. A simulation model used in situations where the state of the system at one point in time does not affect the state of the system at future points
in time is called a
a. Dynamic simulation model c. Static simulation model
b. Steady-state simulation model d. Discrete event simulation model

47. The process of determining that the computer procedure that performs the simulation calculations is logically correct is called
a. Implementation b. Validation c. Verification d. Repetition

48. Numerical values that appear in the mathematical relationships of a model and are considered known and remain constant over all trials of a
simulation are
a. Parameters b. Probabilistic input c. Controllable input d. Events

49. The word “uniform” in the term “uniform random numbers” means
a. All the numbers have the same number of digits
b. If one number is, say, 10 units above the mean, the next number will be 10 units below the mean
c. All the numbers are odd or all are even
d. Each number has an equal probability of being drawn

50. Let Pij = the production of product i in period j. To specify that production of product 1 in period 3 and in period 4 differs by no more than 100
units,
a. P13 – P14 £ 100; P14 – P13 £ 100 c. P13 – P14 £ 100; P13 – P143 100
b. P13 – P14 £ 100; P14 – P13 100
3 d. P13 – P143 100; P14 – P133 100