Arab Open University
Faculty of Business Studies
Mid Term Exam B292
Time Allowed: 2Hours
1. Read each question carefully and make sure that you understand it before you begin to answer it. 2. This exam consists of TWO Compulsory parts.
Part A: has 3 Questions
Part B: has 3 Questions
3. The use of non-programmable calculators is permitted in the examination. 4. In questions that require calculations, credit will be given for showing your workings.
1 - The value Chain is a tool developed by Michael Porter to help organizations develop a competitive advantage through a better understanding of the activities through which they create value.
Draw a diagram that describes Porter's Value Chain. Discuss the elements of primary and secondary activies that make up the value chain of an organisation and give examples.
2 - Gamma Company makes boats and has the following costs at the given levels of production: Month
a. Use the high-low method to compute the variable and fixed elements of Gamma’s total costs. b. Estimate the total cost of making 50 boats, assuming that total fixed costs and the variable cost rate do not change.
3- The Manager of Alpha company is considering droping product C. the fixed cost is allocated equally between three departments. Using the data below you have been asked to recommend, and provide justification, as to whether product C should be dropped.
[Marks: (20+20+10) = 50]
1- Discuss the benefits of a Just-In-Time inventory control system for an organisations...
Please join StudyMode to read the full document