Question 1

Implementing a modern costing approach often results in short-term declines in profitability.

Accepted Answer

A) True 
 B)False  True

Question 2

Manufacturing overhead is best described as

Accepted Answer

A) costs that cannot be traced directly to specific jobs or processes. 
B) costs that are economically feasible to trace directly to specific jobs or processes. 
C) costs that are not economically feasible to trace directly to specific jobs or processes. 
D) costs that management has decided not to trace directly to specific jobs or processes. 
A) costs that cannot be traced directly to specific jobs or processes. 
B) costs that are economically feasible to trace directly to specific jobs or processes. 
C) costs that are not economically feasible to trace directly to specific jobs or processes. 
D) costs that management has decided not to trace directly to specific jobs or processes. C

Question 3

How can PLM software improve the efficiency and effectiveness of the product design process?

Accepted Answer

A) It can eliminate the costs associated with creating and destroying physical prototypes. 
B) It can simulate how new products will be manufactured. 
C) It can store all the data associated with all products. 
D) All of the above 
A) It can eliminate the costs associated with creating and destroying physical prototypes. 
B) It can simulate how new products will be manufactured. 
C) It can store all the data associated with all products. 
D) All of the above A

Question 4

Identify and discuss the two common methods of production planning.

Accepted Answer

The two common methods of production pla

Question 5

Identify one control that can be used to mitigate the threat of under-production.

Accepted Answer

A) production planning systems 
B) analysis of warranty and repair costs 
C) encryption 
D) insurance 
A) production planning systems 
B) analysis of warranty and repair costs 
C) encryption 
D) insurance

Question 6

The expenses associated with a product recall are ________ costs.

Accepted Answer

A) prevention 
B) inspection 
C) internal failure 
D) external failure 
A) prevention 
B) inspection 
C) internal failure 
D) external failure

Question 7

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

Accepted Answer

Threat 1: Unauthorized transactions - Co

Question 8

"Push manufacturing" is also known as

Accepted Answer

A) manufacturing resource planning (MRP). 
B) just-in-time manufacturing system (JIT). 
C) the economic order quantity (EOQ)system. 
D) ahead-of-time production implementation (ATPI). 
A) manufacturing resource planning (MRP). 
B) just-in-time manufacturing system (JIT). 
C) the economic order quantity (EOQ)system. 
D) ahead-of-time production implementation (ATPI).

Question 9

In addition to identifying and dealing with defective products before they reach customers,quality management is concerned with initiating process changes that will reduce the number of defective units produced.All other things held constant,a decrease in the number of defective units will increase throughput by

Accepted Answer

A) increasing productive capacity. 
B) increasing productive processing time. 
C) increasing yield. 
D) increasing all components of throughput. 
A) increasing productive capacity. 
B) increasing productive processing time. 
C) increasing yield. 
D) increasing all components of throughput.

Question 10

The ________ is the production cycle document that specifies the quantity of each product to be produced and when production should begin.

Accepted Answer

A) receiving report 
B) bill of lading 
C) master production schedule 
D) operations list 
A) receiving report 
B) bill of lading 
C) master production schedule 
D) operations list

Question 11

Grizzly Delivery determines the cost per delivery by averaging total cost over the number of deliveries.What costing approach does Grizzly Delivery use?

Accepted Answer

A) unit-based 
B) job-order 
C) process 
D) activity-based 
A) unit-based 
B) job-order 
C) process 
D) activity-based

Question 12

________ are incurred to ensure that products are created without defects the first time.

Accepted Answer

A) External failure costs 
B) Inspection costs 
C) Internal failure costs 
D) Prevention costs 
A) External failure costs 
B) Inspection costs 
C) Internal failure costs 
D) Prevention costs

Question 13

Which of the following organization controls should be implemented and maintained to counteract the general threat that the loss of production data will greatly slow or halt production activity?

Accepted Answer

A) Store key master inventory and production order files on-site only to prevent their theft. 
B) Back up data files only after a production run has been physically completed. 
C) Access controls should apply to all terminals within the organization. 
D) Allow access to inventory records from any terminal within the organization to provide efficient data entry. 
A) Store key master inventory and production order files on-site only to prevent their theft. 
B) Back up data files only after a production run has been physically completed. 
C) Access controls should apply to all terminals within the organization. 
D) Allow access to inventory records from any terminal within the organization to provide efficient data entry.

Question 14

Which of the following controls can minimize the threat of unauthorized disclosure of sensitive information?

Accepted Answer

A) The use of innovative performance metrics. 
B) The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities. 
C) The use of encryption. 
D) The use of production planning systems. 
A) The use of innovative performance metrics. 
B) The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities. 
C) The use of encryption. 
D) The use of production planning systems.

Question 15

A master production schedule is used to develop detailed

Accepted Answer

A) timetables of daily production and determine raw material needs. 
B) reports on daily production and material usage. 
C) daily reports on direct labor needs. 
D) inventory charts. 
A) timetables of daily production and determine raw material needs. 
B) reports on daily production and material usage. 
C) daily reports on direct labor needs. 
D) inventory charts.

Question 16

Grizzly Delivery calculates the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.What costing approach does Grizzly Delivery use?

Accepted Answer

A) job-order 
B) activity-based 
C) unit-based 
D) process 
A) job-order 
B) activity-based 
C) unit-based 
D) process

Question 17

To control for risks associated with the threat of inventory loss,who should have primary responsibility for work-in-process inventories?

Accepted Answer

A) a factory supervisor 
B) the inventory stores department 
C) purchasing 
D) the receiving department 
A) a factory supervisor 
B) the inventory stores department 
C) purchasing 
D) the receiving department

Question 18

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

Accepted Answer

A) prevention 
B) inspection 
C) internal failure 
D) external failure 
A) prevention 
B) inspection 
C) internal failure 
D) external failure

Question 19

Maintaining physical custody of the raw materials and finished goods inventories is the responsibility
of the accounting department.

Accepted Answer

A) True 
 B)False

Question 20

Explain what CIM means and its benefits.

Accepted Answer

CIM is the acronym that stands for compu

Exam 14: The Production Cycle

Implementing a modern costing approach often results in short-term declines in profitability.

Manufacturing overhead is best described as

How can PLM software improve the efficiency and effectiveness of the product design process?

Identify and discuss the two common methods of production planning.

Identify one control that can be used to mitigate the threat of under-production.

The expenses associated with a product recall are ________ costs.

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

"Push manufacturing" is also known as

The ________ is the production cycle document that specifies the quantity of each product to be produced and when production should begin.

Grizzly Delivery determines the cost per delivery by averaging total cost over the number of deliveries.What costing approach does Grizzly Delivery use?

________ are incurred to ensure that products are created without defects the first time.

Which of the following organization controls should be implemented and maintained to counteract the general threat that the loss of production data will greatly slow or halt production activity?

Which of the following controls can minimize the threat of unauthorized disclosure of sensitive information?

A master production schedule is used to develop detailed

Grizzly Delivery calculates the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.What costing approach does Grizzly Delivery use?

To control for risks associated with the threat of inventory loss,who should have primary responsibility for work-in-process inventories?

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

Maintaining physical custody of the raw materials and finished goods inventories is the responsibility of the accounting department.

Explain what CIM means and its benefits.

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

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