Question 1

Managers eliminate non-value-adding activities that are not essential to an organization.

Accepted Answer

A) True 
 B)False

Question 2

The repair of machines is an example of a nonvalue-adding activity.

Accepted Answer

A) True 
 B)False

Question 3

A supply chain is a related sequence of value-creating activities within an organization.

Accepted Answer

A) True 
 B)False

Question 4

Listed below are a number of common manufacturing costs.For each cost,state whether the cost would be considered a direct (D)or indirect (I)cost in a traditional manufacturing environment and in a JIT manufacturing environment.
 $\begin{array}{lcc}
\text { Cost Element } & \text { Traditional } & \text { JIT } \
& \text { Manufacturing } & \text { Manufacturing } \
& \text { Environment } & \text { Environment }\
\text {Insurance}\
\text {Property taxes}\
\text {Equipment depreciation}\
\text {Raw materials}\
\text {Materials handling}\
\text {Operating supplies}\
\text {Power}\
\text {Heat and light}\
\text {Labor of equipment operators}\
\text {President's salary}
\end{array}$

Accepted Answer

None

Question 5

A just-in-time operating environment requires maintenance of large material and finished goods inventories in order to meet customer demand for products.

Accepted Answer

A) True 
 B)False

Question 6

Only value-adding activities are included in the cost hierarchy.

Accepted Answer

A) True 
 B)False

Question 7

For service organizations,customer relations are part of the supply chain and customers are part of the value chain.

Accepted Answer

A) True 
 B)False

Question 8

When managing the production process in a just-in-time environment,the manager's focus is on throughput time.

Accepted Answer

A) True 
 B)False

Question 9

In a just-in-time manufacturing environment,both push-through and pull-through methods trigger scheduling of production.

Accepted Answer

A) True 
 B)False

Question 10

The JIT operating philosophy must be adopted by everyone in a company before its total benefits can be realized.

Accepted Answer

A) True 
 B)False

Question 11

In a just-in-time manufacturing environment,a flexible work cell is created by

Accepted Answer

A)  grouping similar machines together. 
B)  bringing people with differing work skills together into one work area. 
C)  placing together a complete set of machines that produce a complete product. 
D)  grouping people with similar skills together. 
A)  grouping similar machines together. 
B)  bringing people with differing work skills together into one work area. 
C)  placing together a complete set of machines that produce a complete product. 
D)  grouping people with similar skills together.

Question 12

Maintaining consistent high product quality

Accepted Answer

A)  is both required for and a by-product of the just-in-time environment. 
B)  is difficult to obtain in a just-in-time environment because of the severe time constraints imposed by the just-in-time environment. 
C)  requires quality control inspectors at each step of the production process. 
D)  is too expensive to obtain in a just-in-time environment. 
A)  is both required for and a by-product of the just-in-time environment. 
B)  is difficult to obtain in a just-in-time environment because of the severe time constraints imposed by the just-in-time environment. 
C)  requires quality control inspectors at each step of the production process. 
D)  is too expensive to obtain in a just-in-time environment.

Question 13

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Accepted Answer

Companies employing the activity-based m

Question 14

In a just-in-time environment,a manager is interested in trends in inventory turnover.

Accepted Answer

A) True 
 B)False

Question 15

In moving toward the just-in-time continuous work flow concept,a key objective is the elimination of waste.

Accepted Answer

A) True 
 B)False

Question 16

Distinguish between a supply chain and a value chain.How do they relate to each other?

Accepted Answer

A supply chain is a collection of compan

Question 17

Lean uses JIT and reorganizes many activities so that they are performed within the work cells.

Accepted Answer

A) True 
 B)False

Question 18

Cost traceability is decreased in a just-in-time operating environment.

Accepted Answer

A) True 
 B)False

Question 19

When managing inventory in a just-in-time environment,there is less need to control personnel.

Accepted Answer

A) True 
 B)False

Question 20

In just-in-time manufacturing,the basic cost classifications used in product costing are materials and conversion costs.

Accepted Answer

A) True 
 B)False

Exam 19: Value-Based Systems- Abm and Lean

Managers eliminate non-value-adding activities that are not essential to an organization.

The repair of machines is an example of a nonvalue-adding activity.

A supply chain is a related sequence of value-creating activities within an organization.

A just-in-time operating environment requires maintenance of large material and finished goods inventories in order to meet customer demand for products.

Only value-adding activities are included in the cost hierarchy.

For service organizations,customer relations are part of the supply chain and customers are part of the value chain.

When managing the production process in a just-in-time environment,the manager's focus is on throughput time.

In a just-in-time manufacturing environment,both push-through and pull-through methods trigger scheduling of production.

The JIT operating philosophy must be adopted by everyone in a company before its total benefits can be realized.

In a just-in-time manufacturing environment,a flexible work cell is created by

Maintaining consistent high product quality

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

In a just-in-time environment,a manager is interested in trends in inventory turnover.

In moving toward the just-in-time continuous work flow concept,a key objective is the elimination of waste.

Distinguish between a supply chain and a value chain.How do they relate to each other?

Lean uses JIT and reorganizes many activities so that they are performed within the work cells.

Cost traceability is decreased in a just-in-time operating environment.

When managing inventory in a just-in-time environment,there is less need to control personnel.

In just-in-time manufacturing,the basic cost classifications used in product costing are materials and conversion costs.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions,incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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