Exam 7: Additional Topics in Product Costing

Which of the following is not a just-in-time inventory management approach?

Ballistic Company uses two producing departments (A and B) and two service departments (S1 and S2). The costs incurred in S1 and S2 are allocated to Departments A and B and included in their factory overhead rates for costing products. S1 costs are allocated based on the number of employees, S2 costs are allocated based on direct labor hours, and the production departmental overhead rates are also based on direct labor hours. The following data are available for a recent period: Assuming S2 Service Department is allocated first, what is the cost allocated to S1 Service Department, Department A, and Department B?

Explain how traditional performance evaluation/performance systems such as standard costing conflict with the lean production concept.

Which of the following cost categories would most likely use the price of orders placed with suppliers as its allocation base?

Which of the following costs are most difficult to trace to specific units of production or other cost objectives?

Which of the following is an anticipated result of implementing a just-in-time management philosophy?

Ed & Sons Auto Company incurred $60,000 of indirect advertising costs for its operations. The following 2017 data have been collected for its three departments: Required: Determine the costs allocated to each department using the following allocation bases: a. Direct advertising costs b. Newspaper ad space c. Sales

Kent Inc. provided the following data for 2016 and 2017: What are the inventory turnover ratio and the gross margin return on inventory investment for 2017?

Which of the following is not a just-in-time supportive performance measure?

JD Company has two service departments whose direct department costs are $15,000 and $25,000, respectively, and two producing departments whose direct department costs are $210,000 and $200,000, respectively. The combined total department costs for the producing departments after allocating the service departments are:

The reciprocal method of allocating service department costs is also known as linear algebra method.

Which of the following elements of cycle time do not add value to the product?

Jackson Company has two service departments (S1 and S2) and two producing departments (A and B) . ?Department S1 serves Departments S2, A, and B in the following percentages, respectively: 15%, 25%, and 60%. ?Department S2 serves Departments S1, A, and B in the following percentages, respectively: 0%, 70%, and 30%. ?Direct department costs for S1, S2, A, and B are $200,000, $16,000, $210,000, and $185,000, respectively. If Jackson uses the step method of allocating service department costs beginning with Department S1, what is the total amount of cost that will be allocated from S2 to Department A?

A cost that is assigned to a department as a result of an indirect allocation, or reassignment, from another department, such as a service department, would be classified as an indirect departmental cost.

Which of the following is not an element of just-in-time management philosophy?

Which of the following allocation methods fully recognizes services that service departments provide to each other?

All of the following are key elements of a just-in-time philosophy, except:

BWT Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by other departments are as follows: Required: a. Prepare a schedule allocating the service department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the service department costs to the producing departments using the step allocation method.

The ratio of value-added manufacturing time to the total of both value and non-value-added manufacturing times is known as:

Which of the following cost categories would most likely use the number of orders placed with suppliers as its allocation base?