Exam 19: Value-Based Systems- Abm and Lean

A change to just-in-time manufacturing expands mainly the role of the

A bill of activities is useful for estimating a company's profits.

A work cell is an autonomous production line that can perform only one required operation efficiently at a time.

A just-in-time operation seeks to eliminate all product support functions.

A nonvalue-adding activity is defined as a(n)

The time a product spends waiting to be worked on is called storage time.

Activity-based management focuses on identifying product costs as either value-adding or nonvalue-adding activities.

Under new methods of management,attempts to continuously improve the work environment come from

Customer relations are usually part of

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

The three inventory accounts used in traditional costing are replaced by two inventory accounts in backflush costing.

Backflush costing eliminates the need to make journal entries during the period to track cost flows through the production process as the product is made.

For a manufacturer,the final customer is part of the supply chain and customer service is part of the value chain.

Engineering design is an activity vital to the success of any motor vehicle manufacturer.Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of a line of automobiles sold throughout the world.

A bill of activities is used to compute both the costs assigned to activities and the product unit cost.

The value chain is also called the supply network.

Which of the following is an example of a nonvalue-adding activity?

Engineering design is an activity vital to the success of any motor vehicle manufacturer.Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of built-to-order city and county emergency vehicles (orders are usually placed for 10 to 12 identical vehicles).

Define activity-based costing.Explain why this approach to cost assignments is superior to the traditional method of using a plantwide overhead cost rate.Will activity-based costing always result in lower product costs? Defend your answer.

For work done during August,Printing Press Company incurred direct materials costs of $130,000 and conversion costs of $248,000.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 $1,000 of costs,and the ending balance of the Finished Goods Inventory account was $3,000.There were no beginning inventory balances.What is the Cost of Goods Sold account's ending balance for August?