Exam 19: Value-Based Systems- Abm and Lean

For work done during August,Printing Press Company incurred direct materials costs of $139,000 and conversion costs of $260,000.The company employs a just-in-time operating philosophy and backflush costing.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,080 of costs,and the ending balance of the Finished Goods Inventory account was $1,220.There were no beginning inventory balances.What was the ending balance of the Cost of Goods Sold account for August?

In a just-in-time environment using backflush costing,the entry to record the use of materials for the month's production is debit __________ and credit __________.

A company's value chain includes the value chains of its suppliers but not its customers.

The customer's perspective governs whether an activity adds value to a product or service.

Which of the following statements is true?

Just-in-time operations attempt to significantly reduce

A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.

In order for a manager to reduce throughput time,it is necessary for the accounting system to focus on calculating units produced per direct labor hour.

M.E.Taylor Enterprises had the following transactions during October.There were no beginning inventory balances. a. Purchased $37,300 of direct materials, on account. b. Incurred direct labor costs, $29,250. c. Applied $37,500 of overhead to production. d. Completed units costing $88,450. e. Sold units costing $76,130. Using backflush costing, show the flow of costs using the T accounts below. Label each entry with the appropriate letter.

Engineering design for mass-produced automobiles is classified as a(n)__________-level activity in an activity-based costing system.

How do managers measure an activity's performance?

The use of computer monitoring allows product costs to be traced directly to work cells.

Full product cost includes

Both traditional and backflush costing have an account for __________ Inventory.

For a bank,a credit check of a loan applicant is an example of a batch-level activity.

Product unit costs computed using activity-based costing compared to product unit costs computed using a traditional costing approach will

Which of the following activities would be part of the supply chain of a manufacturer?

The just-in-time operating environment typically is characterized by the positioning of all similar machines together on the factory floor.

Traditional environments emphasize functional departments that tend to group similar activities together.

A nonvalue-adding activity is one that increases the cost of a product but does not add to the product's market value.