Question 1

Which of these is not typically associated with successful implementation of just-in-time (JIT) systems?

Accepted Answer

A)  Finding high quality suppliers 
B)  Locating suppliers with short transit times 
C)  Using as many suppliers as possible to minimise the risk of non-delivery 
D)  Developing management commitment to the JIT process 
A)  Finding high quality suppliers 
B)  Locating suppliers with short transit times 
C)  Using as many suppliers as possible to minimise the risk of non-delivery 
D)  Developing management commitment to the JIT process C

Question 2

The 'lean' accounting approach applies to manufacturing entities and is not appropriate for service entities.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following terms is typically associated with just-in-time systems?

Accepted Answer

A)  Demand-push system 
B)  Manufacturing cells 
C)  Non-value-added activities 
D)  Linear regression 
A)  Demand-push system 
B)  Manufacturing cells 
C)  Non-value-added activities 
D)  Linear regression B

Question 4

The just-in-time system is considered a supply-push system.

Accepted Answer

A) True 
 B)False

Question 5

Lean accounting incorporates which of the following?

Accepted Answer

A)  Just-in-time 
B)  Total quality management 
C)  The theory of constraints 
D)  All of the above 
A)  Just-in-time 
B)  Total quality management 
C)  The theory of constraints 
D)  All of the above

Question 6

Physical inspections at every point of the value chain is the key principle underlying TQM.

Accepted Answer

A) True 
 B)False

Question 7

Lean accounting refocuses performance measurement systems to emphasise social controls such as training.

Accepted Answer

A) True 
 B)False

Question 8

Advantages of just-in time inventory management are all of the following, except:

Accepted Answer

A)  It decreases the space needed for inventory storage 
B)  It makes the firm more independent of external suppliers 
C)  It minimises inventory insurance costs 
D)  It increases manufacturing flexibility 
A)  It decreases the space needed for inventory storage 
B)  It makes the firm more independent of external suppliers 
C)  It minimises inventory insurance costs 
D)  It increases manufacturing flexibility

Question 9

The statement concerning total quality management (TQM) that is not true is:

Accepted Answer

A)  TQM is an important part of lean accounting 
B)  it promotes an organisation-wide philosophy 
C)  the units cost of the product or service generally increase slightly as quality is improved 
D)  none of the statements is untrue. i.e. all are true statements 
A)  TQM is an important part of lean accounting 
B)  it promotes an organisation-wide philosophy 
C)  the units cost of the product or service generally increase slightly as quality is improved 
D)  none of the statements is untrue. i.e. all are true statements

Question 10

The statement that is incorrect concerning total quality management is:

Accepted Answer

A)  there is a strong customer focus 
B)  there is an emphasis on process management 
C)  there is extensive employee participation and training 
D)  none of the statements is incorrect, i.e. all are correct statements 
A)  there is a strong customer focus 
B)  there is an emphasis on process management 
C)  there is extensive employee participation and training 
D)  none of the statements is incorrect, i.e. all are correct statements

Question 11

In throughput costing the throughput of a product refers to its:

Accepted Answer

A)  selling price minus its fixed and variable costs 
B)  selling price minus its total fixed costs 
C)  selling price minus its totally variable costs 
D)  variable costs 
A)  selling price minus its fixed and variable costs 
B)  selling price minus its total fixed costs 
C)  selling price minus its totally variable costs 
D)  variable costs

Question 12

In throughput costing which of the following is untrue?

Accepted Answer

A)  Profit is defined as throughput less operating expenses 
B)  The throughput of a product is its selling price minus its totally variable costs 
C)  Investment is also called inventory 
D)  Operating expenses are classified and thought of as direct costs 
A)  Profit is defined as throughput less operating expenses 
B)  The throughput of a product is its selling price minus its totally variable costs 
C)  Investment is also called inventory 
D)  Operating expenses are classified and thought of as direct costs

Question 13

A practice associated with lean accounting is:

Accepted Answer

A)  Producing to forecast 
B)  Vertical reporting 
C)  Accounting information provided to managers and supervisors only 
D)  Producing in teams 
A)  Producing to forecast 
B)  Vertical reporting 
C)  Accounting information provided to managers and supervisors only 
D)  Producing in teams

Question 14

It is correct that under a successful just-in-time production and inventory control system:

Accepted Answer

A)  there must be only one supplier 
B)  distance from the supplier is not an issue as long as the supplier is reliable 
C)  suppliers will normally make frequent deliveries of small lots of materials 
D)  all of the above are correct 
A)  there must be only one supplier 
B)  distance from the supplier is not an issue as long as the supplier is reliable 
C)  suppliers will normally make frequent deliveries of small lots of materials 
D)  all of the above are correct

Question 15

Lean accounting is based on the philosophy

Accepted Answer

A)  that there should be a complete employee-focused approach in the organisation 
B)  that there should be a complete shareholder-focused approach in the organisation 
C)  that there should be a complete customer-focused approach in the organisation 
D)  that there should be a complete management-focused approach in the organisation 
A)  that there should be a complete employee-focused approach in the organisation 
B)  that there should be a complete shareholder-focused approach in the organisation 
C)  that there should be a complete customer-focused approach in the organisation 
D)  that there should be a complete management-focused approach in the organisation

Question 16

The major disadvantage of the just-in-time system is:

Accepted Answer

A)  the number of small deliveries that must occur 
B)  the number of inspections that must occur 
C)  unforeseen, external events disrupting the delivery schedule 
D)  all of the above are major disadvantages 
A)  the number of small deliveries that must occur 
B)  the number of inspections that must occur 
C)  unforeseen, external events disrupting the delivery schedule 
D)  all of the above are major disadvantages

Question 17

Under a traditional accounting system any build up of inventory will increase profit as it will include deferred fixed overheads.

Accepted Answer

A) True 
 B)False

Question 18

In relation to the drum-buffer-rope concept that is used to maxamise flow through an organisational bottleneck, the statement that is correct is:

Accepted Answer

A)  the 'drum' relates to the activity associated with only inserting materials into the constraint when needed 
B)  the 'buffer' is the activity of only maintaining a small amount of work in process 
C)  the 'rope' involves calculating the demand for materials according to specified lead times 
D)  All the statements are correct 
A)  the 'drum' relates to the activity associated with only inserting materials into the constraint when needed 
B)  the 'buffer' is the activity of only maintaining a small amount of work in process 
C)  the 'rope' involves calculating the demand for materials according to specified lead times 
D)  All the statements are correct

Question 19

Which of these is not associated with the lean accounting philosophy?

Accepted Answer

A)  Reducing transaction processing steps 
B)  Refocusing the performance measurement system to emphasise social controls such as training 
C)  Centralising the organisational structure 
D)  All are associated with the lean accounting philosophy 
A)  Reducing transaction processing steps 
B)  Refocusing the performance measurement system to emphasise social controls such as training 
C)  Centralising the organisational structure 
D)  All are associated with the lean accounting philosophy

Question 20

In throughput costing throughput is the rate at which the system generates cash through sales.

Accepted Answer

A) True 
 B)False

Which of these is not typically associated with successful implementation of just-in-time (JIT) systems?

The 'lean' accounting approach applies to manufacturing entities and is not appropriate for service entities.

Which of the following terms is typically associated with just-in-time systems?

The just-in-time system is considered a supply-push system.

Lean accounting incorporates which of the following?

Physical inspections at every point of the value chain is the key principle underlying TQM.

Lean accounting refocuses performance measurement systems to emphasise social controls such as training.

Advantages of just-in time inventory management are all of the following, except:

The statement concerning total quality management (TQM) that is not true is:

The statement that is incorrect concerning total quality management is:

In throughput costing the throughput of a product refers to its:

In throughput costing which of the following is untrue?

A practice associated with lean accounting is:

It is correct that under a successful just-in-time production and inventory control system:

Lean accounting is based on the philosophy

The major disadvantage of the just-in-time system is:

Under a traditional accounting system any build up of inventory will increase profit as it will include deferred fixed overheads.

In relation to the drum-buffer-rope concept that is used to maxamise flow through an organisational bottleneck, the statement that is correct is:

Which of these is not associated with the lean accounting philosophy?

In throughput costing throughput is the rate at which the system generates cash through sales.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Job Costing Systems

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 16: Strategic Management Control: a Lean Perspective

Which of these is not typically associated with successful implementation of just-in-time (JIT) systems?

The 'lean' accounting approach applies to manufacturing entities and is not appropriate for service entities.

Which of the following terms is typically associated with just-in-time systems?

The just-in-time system is considered a supply-push system.

Lean accounting incorporates which of the following?

Physical inspections at every point of the value chain is the key principle underlying TQM.

Lean accounting refocuses performance measurement systems to emphasise social controls such as training.

Advantages of just-in time inventory management are all of the following, except:

The statement concerning total quality management (TQM) that is not true is:

The statement that is incorrect concerning total quality management is:

In throughput costing the throughput of a product refers to its:

In throughput costing which of the following is untrue?

A practice associated with lean accounting is:

It is correct that under a successful just-in-time production and inventory control system:

Lean accounting is based on the philosophy

The major disadvantage of the just-in-time system is:

Under a traditional accounting system any build up of inventory will increase profit as it will include deferred fixed overheads.

In relation to the drum-buffer-rope concept that is used to maxamise flow through an organisational bottleneck, the statement that is correct is:

Which of these is not associated with the lean accounting philosophy?

In throughput costing throughput is the rate at which the system generates cash through sales.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Job Costing Systems

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters