Exam CMQ-OE topic 1 question 191 discussion

Actual exam question from ASQ's CMQ-OE

Question #: 191
Topic #: 1

A company is considering converting a portion of its existing manufacturing space to storage in order to reduce dependence on an external warehouse. The following information reflects the results of a cost-benefit analysis.
Building construction changes$15,000

Reduced transportation$25,000 -
Manufacturing layout changes$36,000
Increased internal storage capacity$48,000
What is the total dollar benefit to be expected when the project is completed?

A. $48,000
B. $73,000
C. $76,000
D. $84,000

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Suggested Answer: C 🗳️

by 4f400d2 at March 28, 2025, 12:05 a.m.

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4f400d2

3 weeks, 1 day ago

Selected Answer: B

Sum of all benefits anticipated: Reduced transportation: $25,000 Increased internal storage capacity: $48,000 Calculating the total: $25,000 + $48,000 = $73,000. Therefore, answer B should be the correct answer. Answer C is computed by adding the following: Building construction changes: $15,000 Reduced transportation: $25,000 Manufacturing layout changes: $36,000. Why are the construction changes and layout changes considered benefits? Please let me know if I overlooked anything.

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Exam CMQ-OE topic 1 question 191 discussion

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