Test 4

Question 1

What type of expense is lumber that you bought for a job?

Answer 1

Direct Costs

Question 2

What type of expense are the heating and lighting bills for your shop?

Answer 2

General Expenses

Question 3

In our industry, what happens when demand for our products rises?

Answer 3

Supply Falls

Question 4

What type of estimate allows for different design/pricing scenarios?

Answer 4

Cost management estimate.

Question 5

Items that form part of a detailed estimate?

Answer 5

Materials

Question 6

True or false: Debt payment is a type of overhead expense.

Answer 6

True

Question 7

When comparing a large millwork firm to a smaller one, Which has a larger non productive workforce

Answer 7

Larger non-productive workforce

Question 8

True or False: As an apprentice, you would receive more generalized training in a large company.

Answer 8

False

Question 9

Which employee discipline situation must take precedence?

Answer 9

Safety

Question 10

What 3 components combine to form business costs?

Answer 10

Direct costs, general expenses and profit

Question 11

Which business is the simplest for you to set up?

Answer 11

Sole proprietor

Question 12

Who is responsible for business debts incurred by your partner?

Answer 12

You both are

Question 13

Concerning corporations, Transfering ownership is difficult?

Answer 13

NO. Transfer of ownership is simplified

Question 14

Which trait is considered a necessity in a leader?

Answer 14

Integrity

Question 15

When you need money sometimes you go to the bank and explain that money is coming in for several jobs but you need some money in the short term until it comes in. What type of business financing is this?

Answer 15

Debt Financing

Question 16

What type of leader would tend to engage in group problem solving?

Answer 16

Democratic

Question 17

An employee is unsure of exact roles and responsibilities, what would be helpful in rectifying this situation

Answer 17

Job Description

Question 17

Which of the following is necessary for a lawful contract?

Memorandum
Capacity
Bill of sale
Shop drawings

Answer 17

Capacity

Question 18

True or False: There must be a minimum of three parties to a contract.

Answer 18

False

Question 19

If the terms of a contract were clearly expressed, but one party failed to understand them, is it possible that the contract may still be valid?

Answer 19

Yes the Terms were clearly expressed.

Question 20

What are offer and acceptance?

Answer 20

Twin elements of an agreement

Question 21

If your partner incurs debt on the part of your business, does it impact you?

Answer 21

Yes you are both liable

Question 22

What is a “letter of intent”?

Answer 22

A precursor of a contract

Question 23

True or False: You sign a contract that you were forced to sign. The contract is enforceable.

Answer 23

False

Question 24

When a contractor breaches a contract, what is the most common reason?

Answer 24

Non - Performance

Question 25

What happens when all the work and payments for a contract have been completed?

Answer 25

Contract is terminated

Question 26

When an owner breaches a contract, what is the most common reason?

Answer 26

Non Payment

Question 27

If you and a client decide that a certain job is not going well, yet there are no hard feelings between you, can you stop the contract?

Answer 27

Yes, by agreement

Question 28

Which professional listed below makes rulings which are voluntarily agreed to by all parties to a contract dispute?

Answer 28

Arbitrator

Question 29

If a client wishes to change the work you have agreed to by contract may this be done?

Answer 29

Yes by a signed change orde

Question 30

What makes a builder’s lien an effective remedy for subcontractors to receive payment?

Answer 30

The bank will withhold financing from the project

Question 31

How much is the amount of the hold back for lien funds in Alberta?

Answer 31

10%

Question 32

How long after substantial completion are the funds from the major holdback released?

Answer 32

45 Days

Question 33

What form of bidding is most often used for public projects?

Answer 33

Open Bidding

Question 34

What might be necessary for you to be considered eligible to bid on some projects?

Answer 34

Your ability to post one or more bonds

Question 35

Which bond is usually the only one taken out by the owner?

Answer 35

Payment Bond

Question 36

You have a set up a CNC machine to produce the case parts for an ongoing contract. All the units are identical. Which term describes your operation?

Answer 36

High Vol Low mix

Question 37

While reorganizing your shop you decide to place the radial arm saw, the jointer and the planer close together. What have you been considering when you make this decision?

Answer 37

Process Flow

Question 38

A shop where production is divided up into several different departments is an example of what type of product conversion system?

Answer 38

Intermittent System

Question 39

True or False: A smaller shop will typically produce cabinetmakers with a very specialized skill set.

Answer 39

False

Question 40

Which two factors are the primary considerations for a shop layout?

Answer 40

Material flow and safety

Question 41

What differentiates a work centre from a work cell?

Answer 41

Work cell is set up to complete a sub-assembly

Question 41

What is one way scheduling differentiates from planning?

Answer 41

Scheduling determines who performs certain operations

Question 42

To minimize storage issues for raw materials and finished products, what type of scheduling would a continuous conversion shop employ?

Answer 42

Backward Schedueling

Question 43

What scheduling method highlights interdependent processes

Answer 43

Critical Path method

Question 44

How does the relationship between the designer and contractor effect project costs?

Answer 44

Clear and concise drawings help to lower costs