Question 1

There are two general types of facility designs: process layouts and product layouts.

Accepted Answer

A) True 
 B)False

Question 2

Kaizen costing includes:

Accepted Answer

A) cost control system concept. 
B) standards set annually or semiannually. 
C) continuous improvement. 
D) comparing actual costs to standard costs. 
A) cost control system concept. 
B) standards set annually or semiannually. 
C) continuous improvement. 
D) comparing actual costs to standard costs.

Question 3

________ starts with the estimated product costs and next adds the expected profit margin.

Accepted Answer

A) Cost-plus pricing 
B) Target costing 
C) Kaizen costing 
D) Standard costing 
A) Cost-plus pricing 
B) Target costing 
C) Kaizen costing 
D) Standard costing

Question 4

The cost of reworking defective components is an example of:

Accepted Answer

A) prevention costs. 
B) appraisal costs. 
C) internal failure costs. 
D) external failure costs. 
A) prevention costs. 
B) appraisal costs. 
C) internal failure costs. 
D) external failure costs.

Question 5

In a just-in-time management system,explain
a.why suppliers become very important to the overall manufacturing process,and
b.what incentives can be offered to reward good suppliers.

Accepted Answer

a. In a just-in-time inventory system, s

Question 6

Concerns about Kaizen costing include:

Accepted Answer

A) radical process improvements. 
B) excessive pressures are put on employees. 
C) focus is on the overall system. 
D) grace periods may be granted. 
A) radical process improvements. 
B) excessive pressures are put on employees. 
C) focus is on the overall system. 
D) grace periods may be granted.

Question 7

One goal of ________ is to design costs out of products in the research,development,and engineering stage.

Accepted Answer

A) cost-plus pricing 
B) target costing 
C) Kaizen costing 
D) traditional costing 
A) cost-plus pricing 
B) target costing 
C) Kaizen costing 
D) traditional costing

Question 8

The operating costs considered by the theory of constraints are all direct manufacturing costs,including direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 9

The theory of constraints:

Accepted Answer

A) emphasizes long-term optimization. 
B) maintains that carefully managing production bottlenecks will increase operating income. 
C) helps managers make special one-time decisions. 
D) suggests that some component parts should be outsourced. 
A) emphasizes long-term optimization. 
B) maintains that carefully managing production bottlenecks will increase operating income. 
C) helps managers make special one-time decisions. 
D) suggests that some component parts should be outsourced.

Question 10

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply:  
-If there is excess capacity,which model is the most profitable to produce?

Accepted Answer

A) base model 
B) long model 
C) trick model 
D) both the base model and the long model 
A) base model 
B) long model 
C) trick model 
D) both the base model and the long model

Question 11

Characteristics of a process layout include:

Accepted Answer

A) continuous processing. 
B) long production paths. 
C) small amounts of inventory. 
D) no work-in-process storage areas. 
A) continuous processing. 
B) long production paths. 
C) small amounts of inventory. 
D) no work-in-process storage areas.

Question 12

Under traditional costing,supervisors and engineers are assumed to have superior knowledge about how to improve processes because they actually work with the manufacturing processes used to produce products.

Accepted Answer

A) True 
 B)False

Question 13

Why is a cost-of-quality report useful?

Accepted Answer

1)It illustrates the financial magnitude

Question 14

Process layouts are characterized by long production paths,high inventory levels and small batches of unique products.

Accepted Answer

A) True 
 B)False

Question 15

Explain the differences between a process layout,a product layout,and cellular manufacturing.

Accepted Answer

In process layouts, all similar equipmen

Question 16

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:
 
Inventory carrying costs are estimated to be 11%  per year.
-As a result of switching to a cellular manufacturing operation,total benefits are projected to increase annually by:
A)$111,400.
B)$113,600.
C)$136,400.
D)$138,600.

Accepted Answer

The answer of Vander Belt Manufacturing, Inc., is considering reorganizing...

Question 17

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:
 
Inventory carrying costs are estimated to be 11%  per year.
-As a result of the layout reorganization,reduced levels of work-in-process inventory are projected to decrease inventory carrying costs annually by:

Accepted Answer

A) $ 1,100. 
B) $ 3,750. 
C) $ 4,400. 
D) $5,500. 
A) $ 1,100. 
B) $ 3,750. 
C) $ 4,400. 
D) $5,500.

Question 18

________ can be a cost beneficial way to gather information because the company can avoid mistakes other companies have made.

Accepted Answer

A) QFD 
B) TLCC 
C) Benchmarking 
D) Kaizen 
A) QFD 
B) TLCC 
C) Benchmarking 
D) Kaizen

Question 19

Processing cycle efficiency is calculated as processing time divided by the sum of processing time,moving time,storage time,and inspection time.

Accepted Answer

A) True 
 B)False

Question 20

Allscott Company is developing its budgets for 2012 and,for the first time,they will use the Kaizen approach.The initial 2012 income statement,based on static data from 2011,is as follows:
 
Selling prices for 2012 are expected to increase by 8%, and sales volume in units will decrease by 10%. The cost of goods sold as estimated by the Kaizen approach will decline by 10% per unit. Other than depreciation, all other operating costs are expected to decline by 5%.
Required:
Prepare a Kaizen-based budgeted income statement for the year ended December 31,2012.

Accepted Answer

The answer of Allscott Company is developing its budgets for...

There are two general types of facility designs: process layouts and product layouts.

Kaizen costing includes:

________ starts with the estimated product costs and next adds the expected profit margin.

The cost of reworking defective components is an example of:

In a just-in-time management system,explain a.why suppliers become very important to the overall manufacturing process,and b.what incentives can be offered to reward good suppliers.

Concerns about Kaizen costing include:

One goal of ________ is to design costs out of products in the research,development,and engineering stage.

The operating costs considered by the theory of constraints are all direct manufacturing costs,including direct materials and direct labor.

The theory of constraints:

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: -If there is excess capacity,which model is the most profitable to produce?

Characteristics of a process layout include:

Under traditional costing,supervisors and engineers are assumed to have superior knowledge about how to improve processes because they actually work with the manufacturing processes used to produce products.

Why is a cost-of-quality report useful?

Process layouts are characterized by long production paths,high inventory levels and small batches of unique products.

Explain the differences between a process layout,a product layout,and cellular manufacturing.

________ can be a cost beneficial way to gather information because the company can avoid mistakes other companies have made.

Processing cycle efficiency is calculated as processing time divided by the sum of processing time,moving time,storage time,and inspection time.

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Life-Cycle Costs

Behavioral and Organizational Issues in Management Accounting and Control Systems

Using Budgets for Planning and Coordination

Financial Control

Filters

Exam 7: Measuring and Managing Process Performance

There are two general types of facility designs: process layouts and product layouts.

Kaizen costing includes:

________ starts with the estimated product costs and next adds the expected profit margin.

The cost of reworking defective components is an example of:

In a just-in-time management system,explain a.why suppliers become very important to the overall manufacturing process,and b.what incentives can be offered to reward good suppliers.

Concerns about Kaizen costing include:

One goal of ________ is to design costs out of products in the research,development,and engineering stage.

The operating costs considered by the theory of constraints are all direct manufacturing costs,including direct materials and direct labor.

The theory of constraints:

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: -If there is excess capacity,which model is the most profitable to produce?

Characteristics of a process layout include:

Under traditional costing,supervisors and engineers are assumed to have superior knowledge about how to improve processes because they actually work with the manufacturing processes used to produce products.

Why is a cost-of-quality report useful?

Process layouts are characterized by long production paths,high inventory levels and small batches of unique products.

Explain the differences between a process layout,a product layout,and cellular manufacturing.

________ can be a cost beneficial way to gather information because the company can avoid mistakes other companies have made.

Processing cycle efficiency is calculated as processing time divided by the sum of processing time,moving time,storage time,and inspection time.

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Life-Cycle Costs

Behavioral and Organizational Issues in Management Accounting and Control Systems

Using Budgets for Planning and Coordination

Financial Control

Filters