Exam 19: Value-Based Systems- Abm and Lean

For a small coffee cafe,which of the following is a nonvalue-adding activity?

You have been invited to address the Students In Free Enterprise (SIFE)team of your alma mater.The topic the team has chosen is the just-in-time philosophy in terms that beginning business students can readily comprehend.The meeting is taking place in the college cafeteria.Reservations and menu choices have been made in advance.It has been suggested that you use that setting as an example of the implementation of a JIT operating system.It will also be beneficial if you indicate in your talk some instances where JIT would be less suitable in the college food services situation.What will you say?

Why is process value analysis not part of the general ledger accounting system?

Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management for a production run of a certain style of dress in blue?

In the JIT environment,direct materials and conversion costs should be nearly uniform for each product in a work cell.

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

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

Customer relations are usually part of

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

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

Unit level,batch level,and service level are examples of cost drivers.

Both activity-based management (ABM)and just-in-time (JIT)seek to eliminate or reduce nonvalue-adding activities and to improve the allocation of resources.

When using backflush costing,product costs are first accumulated in the __________ account.

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

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.

Activity-based management includes all of the following except identifying

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 __________.

In a just-in-time environment,costs associated with product movement and storage typically decrease,whereas costs of inspection and queue time typically increase.

The initial step in achieving the efficiency of a just-in-time system is to

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