Question 1

Identify the following quality control activities as either value-added or non-value-added.
-Design engineering

Accepted Answer

A) Value-added 
B) Non-value-added 
A) Value-added 
B) Non-value-added

Question 2

Reducing wait time is directly linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 3

In a lean environment, process problems are more visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 4

What do lean manufacturers demand from their vendors?

Accepted Answer

A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above 
A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above

Question 5

manufacturing deals with several suppliers in hopes of finding the best price.

Accepted Answer

A)  Traditional 
B)  Lean 
C)  Economic 
D)  Productivity improvement 
A)  Traditional 
B)  Lean 
C)  Economic 
D)  Productivity improvement

Question 6

Set up time is disregarded as an improvement priority under the manufacturing concept.

Accepted Answer

A)  traditional 
B)  lean 
C)  total quality management 
D)  product cost 
A)  traditional 
B)  lean 
C)  total quality management 
D)  product cost

Question 7

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Accepted Answer

A) True 
 B)False

Question 8

All lead times are considered to be value-added lead time.

Accepted Answer

A) True 
 B)False

Question 9

From the foregoing information, determine the budgeted cell conversion cost per unit.

Accepted Answer

A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,842.50 
A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,842.50

Question 10

From the foregoing information, determine the production costs transferred to Cost of Goods Sold during August. '

Accepted Answer

A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600 
A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600

Question 11

In a lean system, there are more transactions to record than there are in a traditional system.

Accepted Answer

A) True 
 B)False

Question 12

Lean manufacturing favors organizing work around products rather than around processes.

Accepted Answer

A) True 
 B)False

Question 13

Peters Manufacturing Co. operates in a lean manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000.
Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

Accepted Answer

Budgeted cell conversion cost

Question 14

Christmas Express makes wreaths in batch sizes of 12. The cutting & assembly process takes 8 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 12 minutes to move the wreaths from the cutting & assembly process to the decorating process.
a) Compute the value-added, non-value-added, and the total lead time of the wreath process.
b) Compute the value-added ratio. Round to the nearest decimal.

Accepted Answer

a) @#IMG-DLM& b) Val

Question 15

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Accepted Answer

A) True 
 B)False

Question 16

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 17

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a prevention cost?

Accepted Answer

A)  preventive maintenance 
B)  operator training 
C)  design engineering 
D)  testing finished products 
A)  preventive maintenance 
B)  operator training 
C)  design engineering 
D)  testing finished products

Question 19

How are the objectives of lean manufacturing achieved?

Accepted Answer

A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above 
A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above

Question 20

Setups are a significant time-consuming activity in traditional production environments.

Accepted Answer

A) True 
 B)False

Exam 27: Lean Principles, Lean Accounting, and Activity Analysis

Identify the following quality control activities as either value-added or non-value-added. -Design engineering

Reducing wait time is directly linked to reducing inventory.

In a lean environment, process problems are more visible than they are in a traditional environment.

What do lean manufacturers demand from their vendors?

manufacturing deals with several suppliers in hopes of finding the best price.

Set up time is disregarded as an improvement priority under the manufacturing concept.

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

All lead times are considered to be value-added lead time.

From the foregoing information, determine the budgeted cell conversion cost per unit.

From the foregoing information, determine the production costs transferred to Cost of Goods Sold during August. '

In a lean system, there are more transactions to record than there are in a traditional system.

Lean manufacturing favors organizing work around products rather than around processes.

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Which of the following is not a prevention cost?

How are the objectives of lean manufacturing achieved?

Setups are a significant time-consuming activity in traditional production environments.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

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