Exam 11: Conversion Processes and Controls

Which of the following involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold?

Select the true statement from the choices below.

The responsibility to conduct make/buy decisions is usually given to:

One inventory control function that is important to the conversion process is the determination of _______, or the most efficient quantity of products to purchase.

Computer-aided manufacturing CAM) involves the complete automation of the production process, including the full replacement of human resources with computers.

Earnings management:

The conversion process is initiated when the company recognizes:

Perpetual inventory systems:

Periodic inventory systems:

Which document provides the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity?

Inventory warehousing involves managing the holding area for finished goods awaiting sale.

The process that is concerned with maintaining the capital resources used to support production is referred to as:

Standard costs include direct materials, direct labor, and overhead.

The final hub in the logistics function is sales.

Cost-benefit can be defined as:

The reconciliation of time sheets with production reports for work-in-process and finished inventories minimizes the related risk of all of the following EXCEPT:

When there is a difference between the inventory records quantity and the physical count of inventory:

The expected cost based on projections of a product's required resources which includes direct materials, direct labor and overhead is referred to as:

When perpetual inventory concepts are utilized, a physical inventory count to determine the quantity of inventory on hand is not required.

Just-in-time JIT) production systems: