1. Margin Pricing Model is represented by

1. Cost / (1 margin rate) = unit selling price
2. Cost * (1 margin rate) = unit selling price
3. Cost - (1 margin rate) = unit selling price
4. None of the above

2. Total Cost of Ownership (TCO) is widely used by many companies in the current competitive world. What is not true about TCO

1. "Attempts to look at the big picture, considering cost beyond that of the purchase price"
2. The approach recognizes that the purchase price represents only a portion of the total cost of acquiring an item
3. "TCO attempts to identify the total acquisition price by including the costs of purchasing, holding, poor quality, and delivery failure"
4. TCO ignore the costs related to quality issues

3. Which statement is not correct regarding process mapping?

1. It is the first step of process management
2. process mapping does not help to improve the process performance
3. Process mapping is a method to graphically describe the steps that make up a process
4. "It consists of a set of tools that enable us to systematically analyse, improve, and redesign a process"

4. A business getting good value when buying products means that it will

1. Always get the cheapest price
2. Always get the highest quality
3. Get the right balance between price and quality
4. Charge its customers the lowest price possible

5. Form postponement is about maintaining a full anticipatory inventory compliment at only one (or at most a very few) strategic location(s)

1. True
2. False