UNIVERSITY OF TORONTO AT SCARBOROUGH
MGTA04 - INTRODUCTION TO MANAGEMENT II SOLUTIONS
2011 Summer - Mid-Term Test – June 22, 2011
Part Two: SHORT ANSWER QUESTIONS:
Define the term PRODUCTIVITY, using labour productivity as an example. How does increased
productivity help a company, and explain three things that a company can do to improve its
competitiveness due to increased productivity.
• Productivity is a measure of efficiency that compares how much is produced with the resources
that were used to produce it.
• Increased productivity helps to reduce the cost of creating its products
• As a result, the company can:
o Reduce its prices in order to sell a greater quantity of products
o Keep prices as is, and make greater profit per product
o Pay workers higher wages without raising prices
Explain what an input device is, and provide three examples. If you were using a transaction
processing system, provide three different pieces of data that you may capture during a transaction
via an input device. Can the data from a transaction system be used in a knowledge system? Explain.
• An input device refers to hardware that allows you to get data into the computer in a form the
computer can understand.
• Examples include a keyboard, a mouse, a scanner, a CD drive, and a voice pickup.
• Using a transaction processing system, we could capture client information, information
regarding the specific order (such as what product is being purchased at what quantity),
costing information, and required shipping details.
• Yes, as long as the data is in the required format, it can be sent to the Knowledge System
where it is turned into information, and integrated with other information to create knowledge.
Jim Smithers started the Scarborough Bakery at the beginning of 2010. He sells bread that he bakes
fresh every morning. Over the course of 2010, he sold 50,000 loaves and charged $1 per loaf. All sales
are in cash; there are no accounts receivables. His costs per loaf are as follows:
At the end of 2010, Jim has no remaining inventory of ingredients. He does have $1000 in office
equipment (chair desk, computer) that he paid for in cash.
Other costs of running the business include monthly rent of $500, monthly utilities of $500 and
salaries of $30,000 per year. Jim had purchased the equipment to make the bread, costi