Question 1

A pull manufacturing company matches its production schedules to actual customer orders.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following results in fewer transactions in lean accounting?

Accepted Answer

A) All manufacturing costs are combined into one account called Raw and In Process Inventory. 
B) The distinction between direct and indirect costs is eliminated. 
C) There is less movement of inventory between departments. 
D) all of these choices 
A) All manufacturing costs are combined into one account called Raw and In Process Inventory. 
B) The distinction between direct and indirect costs is eliminated. 
C) There is less movement of inventory between departments. 
D) all of these choices D

Question 3

From the provided schedule of activity costs, determine the internal failure costs.

Accepted Answer

$37,000 = $29,000 + $8,000

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A backflush accounting system uses work in process inventories as control points between each process step.

Accepted Answer

A) True 
 B)False

Question 6

In a lean environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

Accepted Answer

A) True 
 B)False

Question 7

In a lean environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) processing time 
B) wait time during inspection 
C) wait time in inventory 
D) none of these choices 
A) processing time 
B) wait time during inspection 
C) wait time in inventory 
D) none of these choices

Question 9

Schedule of Activity Costs   ​
-From the provided schedule of activity costs, determine the appraisal costs.

Accepted Answer

A) $50,000 
B) $23,000 
C) $73,000 
D) $104,000 
A) $50,000 
B) $23,000 
C) $73,000 
D) $104,000

Question 10

Schedule of Activity Costs   ​
-Which of the following is not an external failure cost?

Accepted Answer

A) warranty work 
B) processing returned merchandise 
C) rework 
D) correcting invoice errors 
A) warranty work 
B) processing returned merchandise 
C) rework 
D) correcting invoice errors

Question 11

Lean manufacturing values labor for contributions beyond labor tasks, using employee involvement that grants employees the responsibility and authority to make decisions about operations.

Accepted Answer

A) True 
 B)False

Question 12

Accounting for lean operations requires fewer transactions because

Accepted Answer

A) large batches of inventory are combined into a smaller number of transactions 
B) costs are accumulated in one department and then transferred to the next department 
C) combined materials and conversion costs are transferred to finished goods 
D) costs are transferred from department to department allowing for better control of costs 
A) large batches of inventory are combined into a smaller number of transactions 
B) costs are accumulated in one department and then transferred to the next department 
C) combined materials and conversion costs are transferred to finished goods 
D) costs are transferred from department to department allowing for better control of costs

Question 13

Match each of the following activities with the appropriate quality cost classification (a-d).
-Maintaining equipment
A)Prevention cost
B)Appraisal cost
C)Internal failure cost
D)External failure cost

Accepted Answer

The answer of Match each of the following activities with...

Question 14

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

Accepted Answer

A) inventories are maintained at higher levels 
B) process problems cause production to shut down immediately 
C) the push manufacturing system leads to increased inventory levels 
D) the lack of work in process inventory creates problems 
A) inventories are maintained at higher levels 
B) process problems cause production to shut down immediately 
C) the push manufacturing system leads to increased inventory levels 
D) the lack of work in process inventory creates problems

Question 15

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Question 16

Pull manufacturing companies typically produce in small batch sizes.

Accepted Answer

A) True 
 B)False

Question 17

Push manufacturing (or make to stock) is a traditional approach to manufacturing.

Accepted Answer

A) True 
 B)False

Question 18

In a lean accounting system, the costs of direct labor are recorded in the conversion costs account.

Accepted Answer

A) True 
 B)False

Question 19

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 20

Lean manufacturing philosophy reduces all of the following except

Accepted Answer

A) inventory 
B) setup time 
C) lead time 
D) conversion costs 
A) inventory 
B) setup time 
C) lead time 
D) conversion costs

Exam 27: Lean Manufacturing and Activity Analysis

A pull manufacturing company matches its production schedules to actual customer orders.

Which of the following results in fewer transactions in lean accounting?

From the provided schedule of activity costs, determine the internal failure costs.

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

A backflush accounting system uses work in process inventories as control points between each process step.

In a lean environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

In a lean environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

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

Schedule of Activity Costs ​ -From the provided schedule of activity costs, determine the appraisal costs.

Schedule of Activity Costs ​ -Which of the following is not an external failure cost?

Lean manufacturing values labor for contributions beyond labor tasks, using employee involvement that grants employees the responsibility and authority to make decisions about operations.

Accounting for lean operations requires fewer transactions because

Match each of the following activities with the appropriate quality cost classification (a-d). -Maintaining equipment A)Prevention cost B)Appraisal cost C)Internal failure cost D)External failure cost

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

Employee involvement does not include performing any indirect manufacturing functions.

Pull manufacturing companies typically produce in small batch sizes.

Push manufacturing (or make to stock) is a traditional approach to manufacturing.

In a lean accounting system, the costs of direct labor are recorded in the conversion costs account.

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

Lean manufacturing philosophy reduces all of the following except

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

Schedule of Activity Costs -From the provided schedule of activity costs, determine the appraisal costs.

Schedule of Activity Costs -Which of the following is not an external failure cost?