Question 1

All of the following are internal control procedures that should be in place in the conversion cycle except

Accepted Answer

A)  calculation and analysis of direct material and direct labor variances 
B)  retention of excess materials by work centers 
C)  physical count of inventory items on hand 
D)  limited access to raw material and finished goods inventories 
A)  calculation and analysis of direct material and direct labor variances 
B)  retention of excess materials by work centers 
C)  physical count of inventory items on hand 
D)  limited access to raw material and finished goods inventories B

Question 2

Deficiencies of the traditional cost accounting information system include all of the following except

Accepted Answer

A)  an emphasis on financial performance 
B)  inaccurate cost allocations 
C)  an emphasis on standard costs 
D)  immediate feedback about deviations from the norm 
A)  an emphasis on financial performance 
B)  inaccurate cost allocations 
C)  an emphasis on standard costs 
D)  immediate feedback about deviations from the norm D

Question 3

The work-in-process file is the subsidiary ledger for the work-in-process control account.

Accepted Answer

A) True 
 B)False  True

Question 4

What is one benefit of the flexible production system?

Accepted Answer

A flexible production system s

Question 5

Explain how CAM can contribute to a firm's move toward world-class status.

Accepted Answer

Computer-aided manufacturing (CAM)focuse

Question 6

Batch processing creates a homogeneous product through a continuous series of standard procedures.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not true?

Accepted Answer

A)  The complexities of ABC have caused many firms to pursue value stream accounting. 
B)  Value stream accounting captures costs related to value added activities within a specified department or activity. 
C)  An essential aspect in implementing value stream accounting is defining the product family. 
D)  Value stream accounting makes no distinction between direct costs and indirect costs. 
A)  The complexities of ABC have caused many firms to pursue value stream accounting. 
B)  Value stream accounting captures costs related to value added activities within a specified department or activity. 
C)  An essential aspect in implementing value stream accounting is defining the product family. 
D)  Value stream accounting makes no distinction between direct costs and indirect costs.

Question 8

A move ticket

Accepted Answer

A)  is the formal plan and authority to begin production 
B)  specifies the materials and production required for each batch 
C)  records the work done in each work center 
D)  authorizes the storekeeper to release materials to work centers 
A)  is the formal plan and authority to begin production 
B)  specifies the materials and production required for each batch 
C)  records the work done in each work center 
D)  authorizes the storekeeper to release materials to work centers

Question 9

The production schedule is

Accepted Answer

A)  the expected demand for the firm's finished goods for a given year 
B)  the formal plan and authority to begin production 
C)  a description of the type and quantity of raw materials and subassemblies used to produce a single unit of finished product 
D)  the sequence of operations during manufacturing 
A)  the expected demand for the firm's finished goods for a given year 
B)  the formal plan and authority to begin production 
C)  a description of the type and quantity of raw materials and subassemblies used to produce a single unit of finished product 
D)  the sequence of operations during manufacturing

Question 10

The cost of poor quality includes all of the following except

Accepted Answer

A)  cost of rework 
B)  warranty claims 
C)  scheduling delays 
D)  proceeds from the sale of scrap 
A)  cost of rework 
B)  warranty claims 
C)  scheduling delays 
D)  proceeds from the sale of scrap

Question 11

Discuss the principles underlying the lean manufacturing approach.

Accepted Answer

Pull Processing.Products are pulled from

Question 12

All of the following are characteristics of batch processing except

Accepted Answer

A)  each item in the batch is similar 
B)  batches are produced in accordance with detailed customer specifications 
C)  batches are produced to replenish depleted inventory levels 
D)  setting up and retooling is required for different batches 
A)  each item in the batch is similar 
B)  batches are produced in accordance with detailed customer specifications 
C)  batches are produced to replenish depleted inventory levels 
D)  setting up and retooling is required for different batches

Question 13

Which type of manufacturing creates a homogeneous product through a continuous series of standard procedures?

Accepted Answer

continuous

Question 14

Manufacturing resources planning (MRP II)has evolved into enterprise resource planning (ERP).

Accepted Answer

A) True 
 B)False

Question 15

Discuss the importance to the cost-accounting department of the move ticket.

Accepted Answer

The various work centers send cost accou

Question 16

Discuss three common problems associated with inventories.

Accepted Answer

1.Inventories cost money.They are an inv

Question 17

Explain the relationship between MRP,MRPII and ERP.

Accepted Answer

Manufacturing resources planning (MRP II

Question 18

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

Accepted Answer

A) True 
 B)False

Question 19

What is meant by the term "islands of technology"?

Accepted Answer

Islands of technology describe

Question 20

What is a company's value stream?

Accepted Answer

A company's value stream inclu

All of the following are internal control procedures that should be in place in the conversion cycle except

Deficiencies of the traditional cost accounting information system include all of the following except

The work-in-process file is the subsidiary ledger for the work-in-process control account.

What is one benefit of the flexible production system?

Explain how CAM can contribute to a firm's move toward world-class status.

Batch processing creates a homogeneous product through a continuous series of standard procedures.

Which of the following is not true?

A move ticket

The production schedule is

The cost of poor quality includes all of the following except

Discuss the principles underlying the lean manufacturing approach.

All of the following are characteristics of batch processing except

Which type of manufacturing creates a homogeneous product through a continuous series of standard procedures?

Manufacturing resources planning (MRP II)has evolved into enterprise resource planning (ERP).

Discuss the importance to the cost-accounting department of the move ticket.

Discuss three common problems associated with inventories.

Explain the relationship between MRP,MRPII and ERP.

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

What is meant by the term "islands of technology"?

What is a company's value stream?

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 7: The Conversion Cycle

All of the following are internal control procedures that should be in place in the conversion cycle except

Deficiencies of the traditional cost accounting information system include all of the following except

The work-in-process file is the subsidiary ledger for the work-in-process control account.

What is one benefit of the flexible production system?

Explain how CAM can contribute to a firm's move toward world-class status.

Batch processing creates a homogeneous product through a continuous series of standard procedures.

Which of the following is not true?

A move ticket

The production schedule is

The cost of poor quality includes all of the following except

Discuss the principles underlying the lean manufacturing approach.

All of the following are characteristics of batch processing except

Which type of manufacturing creates a homogeneous product through a continuous series of standard procedures?

Manufacturing resources planning (MRP II)has evolved into enterprise resource planning (ERP).

Discuss the importance to the cost-accounting department of the move ticket.

Discuss three common problems associated with inventories.

Explain the relationship between MRP,MRPII and ERP.

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

What is meant by the term "islands of technology"?

What is a company's value stream?

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters