Exam 12: Lean Principles, Lean Accounting, and Activity Analysis

Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Which of the following statements best describes the relationship among the costs of quality?

Lean manufacturing favors organizing work around processes rather than around products.

Alaskan Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper.The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds.Annual budgeted cell conversion costs were as follows: Alaskan planned 2,500 total machine hours for the year. Calculate Alaskan's budgeted cell conversion cost rate for the year.

Identify the following quality control activities as either value-added or non-value-added. -Design engineering

From the foregoing information, determine the manufacturing cost per unit.

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

Lean manufacturing philosophy reduces all of the following except

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

What do lean manufacturers demand from their vendors?

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

In a lean environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

A backflush accounting system uses work in process inventories as control points between each process step.

Identify the following quality control activities as either value-added or non-value-added. -Customer service calls

Which of the following is characteristic of a lean production layout?

Identify the following quality control activities as either value-added or non-value-added. -Processing returned materials

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

The lean philosophy views inventory as a necessary buffer to protect against process problems.

From the above schedule of activity costs, determine the value-added costs.

A process-oriented layout segments production facilities into functional departments.