Exam 19: Value-Based Systems- Abm and Lean

Ressano Manufacturing had the following transactions during March.There were no beginning inventory balances. a. Purchased $96,000 of direct materials, on account. b. Incurred direct labor costs, $83,000. c. Applied $88,000 of overhead to production. d. Completed units costing $252,000. e. Sold units costing $250,000. Using backflush costing, show the flow of costs using the T accounts below. Label each entry with the appropriate letter.

Explain how a just-in-time operating philosophy reduces the time it takes to complete the production of a product.Include in your answer the classifications of time that are affected.How does such a change help to reduce product costs?

Which of the following is not a concern when managing inventory in a just-in-time environment?

In a traditional environment,costs are tracked through the various production departments as products or services move through the production process.

A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit,batch,product,and facility levels to classify its activities. A facility-level activity is

Just-in-time operating environments encourage continuous improvement of the work environment.

Shifting to a just-in-time approach in a manufacturing environment usually requires a new approach in evaluating costs.

Xavier Products Company is in the process of adopting the just-in-time operating philosophy for its trophy-making operations.Indicate which of the following overhead costs is a nonvalue-adding cost (NVA).

Activity-based costing is useful for profit planning.