Exam 11: Conversion Processes

Cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes activity-based costing?

RAM Manufacturing LLC is a rapidly growing manufacturer of parts for the automotive industry. At RAM Manufacturing every production order must be approved by an authorized employee. As part of an internal audit, Joan, a newly hired internal auditor, is checking the list of authorized approvers for production orders approved in January. Joan finds that production orders 4328 and 4331 were not approved by an authorized approver. Joan wants to find of the name of the employee who approved those production orders. Which module in the ERP system does Joan need to access to extract this information? $\text{Authorized Approvers Table}$ Employee Authorization ID Level 23456 \ 10,000 23654 \ 10,000 23777 \ 50,000 23787 \ 10,000 23799 \ 100,000 $\text{Authorized Production Orders}$ Production Approver Production Authorization Order ID Order Value Date 4322 23456 \ 5,780 1/2/202 4323 23654 \ 6,890 1/4/202 4324 23777 \ 27,430 1/6/202 4325 23799 \ 67,810 1/9/202 4326 23456 \ 6,780 1/13/202 4327 23654 \ 3,210 1/16/202 4328 23809 \ 2,480 1/18/202 4329 23777 \ 35,680 1/22/202 4330 23456 \ 3,240 1/26/202 4331 23809 \ 1,340 1/28/202

For accounting purposes, the costs of the cleaning supplies to clean the machines used to manufacture the brake drums would be classified as what?

Production reports range from source documents to key metrics. Which is the best description of a master production schedule (MPS)?

RAM Manufacturing LLC is a rapidly growing manufacturer of parts for the automotive industry. RAM Manufacturing is launching a new disc brake product. Maeve, a newly hired cost accountant, has been asked to assign a number of costs incurred in manufacturing the disc brakes to the appropriate cost category. To what product cost category would a manufacturing employees hourly wages be assigned?

Choose from the following selections the best definition of a master production schedule (MPS).

RAM Manufacturing LLC is a rapidly growing manufacturer of parts for the automotive industry. Maeve, a recent college graduate, has been hired as a cost accountant. She will be working with a product development team on designing new car parts. She has had a few weeks of training in the department. She has been asked to describe an operations list or bill of operations (BOO). Please write a description.

Choose from the following selections the best definition of a move ticket.

Overall equipment effectiveness (OEE) is a key performance indicator that measures how well production resources are used by identifying the percentage of productive manufacturing time. An OEE of 100% means that all products produced are acceptable (100% quality), ________, and manufactured without interruptions in production (100% availability). Management uses OEE to identify process and performance improvement potential.

Traditional cost accounting assigns production costs differently, depending on the product or service. Which cost accounting method would likely be used for pumps built to specific customer specification?

The manufacturing conversion and supply chain management processes involve 11 ERP features from the Financial, Production, and Supply Chain Management modules. Which of the following modules is part of the manufacturing conversion and supply chain management processes?

A digital factory that is connected, networked, and fully integrated creates opportunities to minimize costs of downtime and underperformance in production and to enable the best output from factory assets and employees. What is a challenge that companies face when using digital manufacturing?

Production reports range from source documents to key metrics. Which is the best description of total manufacturing costs of products by period?

RAM Manufacturing LLC is a rapidly growing manufacturer of parts for the automotive industry. Justin, the Chief Financial Officer of RAM Manufacturing, recently read an article titled "Digital Manufacturing and the CFO" in the CMA's Strategic Finance magazine. Justin arranges a meeting with Maeve, head of manufacturing operations to discuss the article. After meeting and discussing digital manufacturing at RAM Manufacturing, they discuss some of the challenges they may face in implementing this initiative. Briefly discuss some of the challenges RAM Manufacturing can expect to this initiative.

Production reports range from source documents to key metrics. Which is the best description of a production plan?

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: the cost of direct materials, ________, and the cost of manufacturing overhead.

Production reports range from source documents to key metrics. Which is the best description of a bill of materials (BOM)?

For accounting purposes, the salaries, wages, and benefit expenses of employees directly involved in the production process are called what?

The cost accounting function determines product costs, costs of goods sold, and inventory values for financial reporting purposes and management reporting. What is a sample control activity that could be used to control for misstatements in costs that may result in a material misstatement of financial reports?

Which control activity listed below is a product development control activity?