Question 1

Lean accounting embraces full absorption costing.

Accepted Answer

A) True 
 B)False

Question 2

The first stage in the lean accounting model is:

Accepted Answer

A)  Learning and growth within the organisation to strive for continual perfection 
B)  Identify the relevant value-chain processes and activities 
C)  Identify and define value in organisational offerings 
D)  Implement a pull system in sync with customer demand 
A)  Learning and growth within the organisation to strive for continual perfection 
B)  Identify the relevant value-chain processes and activities 
C)  Identify and define value in organisational offerings 
D)  Implement a pull system in sync with customer demand

Question 3

The just-in-time inventory system is considered a:

Accepted Answer

A)  supply-pull system 
B)  demand-push system 
C)  supply-push system 
D)  demand-pull system 
A)  supply-pull system 
B)  demand-push system 
C)  supply-push system 
D)  demand-pull system

Question 4

Which of these is not a benefit of the just-in-time system?

Accepted Answer

A)  it guarantees that inventory will always be available from the supplier 
B)  it reduces inventory obsolescence 
C)  it reduces raw material handling costs 
D)  none of the above is not a benefit, i.e. all are benefits of the just-in-time system 
A)  it guarantees that inventory will always be available from the supplier 
B)  it reduces inventory obsolescence 
C)  it reduces raw material handling costs 
D)  none of the above is not a benefit, i.e. all are benefits of the just-in-time system

Question 5

The philosophy of TQM is to cut costs while increasing quality.

Accepted Answer

A) True 
 B)False

Question 6

Lean accounting may involve cutting:

Accepted Answer

A)  inventory levels 
B)  the workload 
C)  paperwork 
D)  all of the above 
A)  inventory levels 
B)  the workload 
C)  paperwork 
D)  all of the above

Question 7

In implementing lean accounting concepts the value chain is considered to end when the product or service is sold to the customer.

Accepted Answer

A) True 
 B)False

Question 8

Under TOC a constraint that is a demand side rather an a supply side constraint is:

Accepted Answer

A)  insufficient processing time available 
B)  lack of the necessary knowledge or skills 
C)  a shortage of raw materials 
D)  none of the above are demand side constraints, all are supply side constraints 
A)  insufficient processing time available 
B)  lack of the necessary knowledge or skills 
C)  a shortage of raw materials 
D)  none of the above are demand side constraints, all are supply side constraints

Question 9

Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maxamise their profitability.

Accepted Answer

A) True 
 B)False

Question 10

Under a lean accounting system it is possible to dispense with supplier's invoices.

Accepted Answer

A) True 
 B)False

Question 11

'Value' in lean accounting is defined through the eyes of the customer.

Accepted Answer

A) True 
 B)False

Question 12

The theory of constraints (TOC) is concerned with constraints on the supply side, not those on the demand side.

Accepted Answer

A) True 
 B)False

Question 13

The total quality management (TQM) approach originated in:

Accepted Answer

A)  Japan 
B)  Germany 
C)  USA 
D)  South Korea 
A)  Japan 
B)  Germany 
C)  USA 
D)  South Korea

Question 14

The theory of constraints (TOC) involves imposing strict controls and standards on all aspects of the value chain in order to improve efficiency.

Accepted Answer

A) True 
 B)False

Question 15

Under a lean accounting approach the aim is to remove all non-value added activities.

Accepted Answer

A) True 
 B)False

Question 16

NRL's accounting information system reported warranty repair and product replacement costs totaling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

Accepted Answer

A)  Internal activity costs 
B)  External activity costs 
C)  Appraisal activity costs 
D)  Prevention activity costs 
A)  Internal activity costs 
B)  External activity costs 
C)  Appraisal activity costs 
D)  Prevention activity costs

Question 17

Just-in-time manufacturing is dedicated to:

Accepted Answer

A)  having excessive amounts of materials on hand at all times 
B)  having the right amount of materials at the time they are needed 
C)  having no materials on hand at any time 
D)  having to order materials when the factory runs out 
A)  having excessive amounts of materials on hand at all times 
B)  having the right amount of materials at the time they are needed 
C)  having no materials on hand at any time 
D)  having to order materials when the factory runs out

Question 18

The statement concerning lean accounting that is true is:

Accepted Answer

A)  a perpetual inventory system needs to be implemented 
B)  the focus is on achieving economies of scale in production 
C)  labour is considered to be a period cost and is treated as more fixed than variable 
D)  all of the statements are true 
A)  a perpetual inventory system needs to be implemented 
B)  the focus is on achieving economies of scale in production 
C)  labour is considered to be a period cost and is treated as more fixed than variable 
D)  all of the statements are true

Question 19

The philosophy of just-in-time processing results in finished goods being completed just in time to be offered for sale.

Accepted Answer

A) True 
 B)False

Question 20

An approach to accounting that aims to eliminate all sources of organisational waste from the value chain is known as:

Accepted Answer

A)  just-in-time 
B)  strategic management 
C)  lean accounting 
D)  value chain management 
A)  just-in-time 
B)  strategic management 
C)  lean accounting 
D)  value chain management

Lean accounting embraces full absorption costing.

The first stage in the lean accounting model is:

The just-in-time inventory system is considered a:

Which of these is not a benefit of the just-in-time system?

The philosophy of TQM is to cut costs while increasing quality.

Lean accounting may involve cutting:

In implementing lean accounting concepts the value chain is considered to end when the product or service is sold to the customer.

Under TOC a constraint that is a demand side rather an a supply side constraint is:

Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maxamise their profitability.

Under a lean accounting system it is possible to dispense with supplier's invoices.

'Value' in lean accounting is defined through the eyes of the customer.

The theory of constraints (TOC) is concerned with constraints on the supply side, not those on the demand side.

The total quality management (TQM) approach originated in:

The theory of constraints (TOC) involves imposing strict controls and standards on all aspects of the value chain in order to improve efficiency.

Under a lean accounting approach the aim is to remove all non-value added activities.

NRL's accounting information system reported warranty repair and product replacement costs totaling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

Just-in-time manufacturing is dedicated to:

The statement concerning lean accounting that is true is:

The philosophy of just-in-time processing results in finished goods being completed just in time to be offered for sale.

An approach to accounting that aims to eliminate all sources of organisational waste from the value chain is known as:

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

Lean accounting embraces full absorption costing.

The first stage in the lean accounting model is:

The just-in-time inventory system is considered a:

Which of these is not a benefit of the just-in-time system?

The philosophy of TQM is to cut costs while increasing quality.

Lean accounting may involve cutting:

In implementing lean accounting concepts the value chain is considered to end when the product or service is sold to the customer.

Under TOC a constraint that is a demand side rather an a supply side constraint is:

Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maxamise their profitability.

Under a lean accounting system it is possible to dispense with supplier's invoices.

'Value' in lean accounting is defined through the eyes of the customer.

The theory of constraints (TOC) is concerned with constraints on the supply side, not those on the demand side.

The total quality management (TQM) approach originated in:

The theory of constraints (TOC) involves imposing strict controls and standards on all aspects of the value chain in order to improve efficiency.

Under a lean accounting approach the aim is to remove all non-value added activities.

NRL's accounting information system reported warranty repair and product replacement costs totaling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

Just-in-time manufacturing is dedicated to:

The statement concerning lean accounting that is true is:

The philosophy of just-in-time processing results in finished goods being completed just in time to be offered for sale.

An approach to accounting that aims to eliminate all sources of organisational waste from the value chain is known as:

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