Question 1

Inventory reduction is a principle.

Accepted Answer

A) lean 
B) traditional processing 
C) economic 
D) wait time 
A) lean 
B) traditional processing 
C) economic 
D) wait time

Question 2

Which of the following is characteristic of the traditional cost system?

Accepted Answer

A) Many work in process account transactions. 
B) Reliance on financial performance measures. 
C) Many process control points. 
D) All of the above. 
A) Many work in process account transactions. 
B) Reliance on financial performance measures. 
C) Many process control points. 
D) All of the above.

Question 3

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

Accepted Answer

A) True 
 B)False

Question 4

From the above schedule of activity costs, determine the internal failure costs.

Accepted Answer

A) $37,000 
B) $25,000 
C) $8,000 
D) $33,000 
A) $37,000 
B) $25,000 
C) $8,000 
D) $33,000

Question 5

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Push manufacturing made-to-stock is a traditional approach to manufacturing.

Accepted Answer

A) True 
 B)False

Question 8

How are the objectives of lean manufacturing achieved?

Accepted Answer

A) Product-oriented production layout 
B) Employee involvement 
C) Supplier partnering 
D) All of the above 
A) Product-oriented production layout 
B) Employee involvement 
C) Supplier partnering 
D) All of the above

Question 9

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an example of a nonfinancial measure?

Accepted Answer

A) lead time 
B) setup time 
C) units scrapped 
D) all of the above 
A) lead time 
B) setup time 
C) units scrapped 
D) all of the above

Question 11

Connally Company's payroll department required that every time card be checked twice to ensure pay accuracy.The company has 1,000 employees and has determined that the checks cost the company $8,000 per year.They have decided to change this policy and only check those names which appear on the exceptions report and a random check on the entire payroll.Currently only 15% of the payroll is evaluated each payroll.Determine the inspection activity cost per employee on the 1,000 employees both before and after the improvement.

Accepted Answer

Inspection activity before imp

Question 12

Which of the following is considered non-value-added lead time?

Accepted Answer

A) packing 
B) moving from process to process 
C) converting raw materials to finished product 
D) all of the above 
A) packing 
B) moving from process to process 
C) converting raw materials to finished product 
D) all of the above

Question 13

In a lean environment, process problems are more visible than they are in a traditional environment because:

Accepted Answer

A) inventories are maintained at higher levels. 
B) process problems cause production to shut down immediately. 
C) the push manufacturing system leads to increased inventory level. 
D) the lack of work in process inventory creates problems. 
A) inventories are maintained at higher levels. 
B) process problems cause production to shut down immediately. 
C) the push manufacturing system leads to increased inventory level. 
D) the lack of work in process inventory creates problems.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August.

Accepted Answer

A) $369,840 
B) $408,480 
C) $428,800 
D) $473,600 
A) $369,840 
B) $408,480 
C) $428,800 
D) $473,600

Question 16

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Question 17

Identity the following by their type of quality cost.
-Vendor quality

Accepted Answer

A) Preventive costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs 
A) Preventive costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs

Question 18

Identity the following by their type of quality cost.
-Returned merchandise

Accepted Answer

A) Preventive costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs 
A) Preventive costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs

Question 19

Lean manufacturing is also called make-to-order manufacturing.

Accepted Answer

A) True 
 B)False

Question 20

From the above schedule, calculate the external failure costs.

Accepted Answer

$30,000 =

Inventory reduction is a principle.

Which of the following is characteristic of the traditional cost system?

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

From the above schedule of activity costs, determine the internal failure costs.

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

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

Push manufacturing made-to-stock is a traditional approach to manufacturing.

How are the objectives of lean manufacturing achieved?

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Which of the following is an example of a nonfinancial measure?

Which of the following is considered non-value-added lead time?

In a lean environment, process problems are more visible than they are in a traditional environment because:

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

From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August.

Employee involvement does not include performing any indirect manufacturing functions.

Identity the following by their type of quality cost. -Vendor quality

Identity the following by their type of quality cost. -Returned merchandise

Lean manufacturing is also called make-to-order manufacturing.

From the above schedule, calculate the external failure costs.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Statement of Cash Flows

Financial Statement Analysis

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

Inventory reduction is a principle.

Which of the following is characteristic of the traditional cost system?

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

From the above schedule of activity costs, determine the internal failure costs.

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

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

Push manufacturing made-to-stock is a traditional approach to manufacturing.

How are the objectives of lean manufacturing achieved?

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Which of the following is an example of a nonfinancial measure?

Which of the following is considered non-value-added lead time?

In a lean environment, process problems are more visible than they are in a traditional environment because:

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

From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August.

Employee involvement does not include performing any indirect manufacturing functions.

Identity the following by their type of quality cost. -Vendor quality

Identity the following by their type of quality cost. -Returned merchandise

Lean manufacturing is also called make-to-order manufacturing.

From the above schedule, calculate the external failure costs.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Statement of Cash Flows

Financial Statement Analysis

Filters