Consulting Case Interview Practice Questions - Question List

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106. True or false: Cost-of-Goods-Sold (COGS) is defined as the costs that go into creating the products or services that a company sells.
  1. True
  2. False
107. True or false: Reducing inventory levels reduces risk.
  1. True
  2. False
108. Boris has identified some key risks in a new project he is leading. What are the acceptable ways to deal with this risk?
  1. Say this risk is fine and do nothing.
  2. Invest resources to monitor the specific risk.
  3. Pay another contractor to execute a piece of the project that seems risky with a penalty if they fail.
  4. Pay an insurer to compensate the company with a cash payment if the risk does not work out.
  5. Throw a temper tantrum
109. Which of the following are switching costs? Select all that apply:
  1. The time it takes to learn a new software program
  2. Fee for cancelling mobile phone service
  3. Search costs
  4. Emotional attachment
  5. Cannibalization
110. Sarbanes-Oxley (SOX) might keep a firm from going public for which of the following reasons?
  1. Compliance cost
  2. Health care costs
  3. Liquidity requirements
  4. ARPU
  5. All of the above

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