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

Identify the following quality control activities as either value-added or non-value-added. -Scrap material

Make-to-order companies typically produce in small batch sizes.

Which of the following are features of the lean manufacturing system? a) maintaining excess inventory to ensure that products will always be available b) cross training of employees c) giving employees additional authority and responsibility d) product-oriented layout e) increased set-up time

Schedule of Activity Costs Quality Control Activities Activity Cost Frocess audits \ 50,000 Training of machine operators 28,000 Frocessing returned products 19,000 Scrap processing disposal) 25,000 Rework 8,000 Freventative maintenance 30,000 Froduct design 46,000 Warranty work 12,000 Finished goods inspection 23,000 -From the above schedule of activity costs, determine the appraisal costs.

In a lean environment, operations only respond to customer orders.

Identity the following by their type of quality cost. -Recalls

Lead time includes both value-added time and non-value-added time.

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

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

Which of the following is a value-added activity?

From the foregoing information, determine the production costs transferred to Finished Goods during August.

Lean manufacturing is also called make-to-order manufacturing.

Identity the following by their type of quality cost. -Vendor quality

Prevention costs and appraisal costs are considered costs of controlling quality.

Which of the following is an example of value-added time?

Which of the following is characteristic of a lean production layout?

Schedule of Activity Costs Quality Control Activities Activity Cost Frocess audits \ 50,000 Training of machine operators 28,000 Frocessing returned products 19,000 Scrap processing disposal) 25,000 Rework 8,000 Freventative maintenance 30,000 Froduct design 46,000 Warranty work 12,000 Finished goods inspection 23,000 -From the above schedule of activity costs, determine the prevention costs.