Question 1

How does pull-through production help minimize inventories in a just-in-time operating environment?

Accepted Answer

A)  Products are made in anticipation of customer demand. 
B)  Products are made only when customer orders are received. 
C)  Products are made in large production runs. 
D)  Products are made identically. 
A)  Products are made in anticipation of customer demand. 
B)  Products are made only when customer orders are received. 
C)  Products are made in large production runs. 
D)  Products are made identically. B

Question 2

A just-in-time operation would attempt to eliminate inspection time.

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

In a just-in-time operating environment, the key measure of cost incurred is

Accepted Answer

A)  direct labor hours. 
B)  push-through time. 
C)  throughput time. 
D)  indirect costs. 
A)  direct labor hours. 
B)  push-through time. 
C)  throughput time. 
D)  indirect costs.

Question 7

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

Accepted Answer

A)  Shipping 
B)  Customer service 
C)  Parts manufacturing 
D)  Research and development 
A)  Shipping 
B)  Customer service 
C)  Parts manufacturing 
D)  Research and development

Question 8

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

Accepted Answer

A)  Inventory control 
B)  Product engineering 
C)  Cost accounting 
D)  Materials storage 
A)  Inventory control 
B)  Product engineering 
C)  Cost accounting 
D)  Materials storage

Question 9

A goal of process value analysis (PVA) is to reduce nonvalue-adding activities. Outline a procedure a company could use to accomplish this goal.

Accepted Answer

PVA details each step in the process fro

Question 10

Typically, there are seven levels in the cost hierarchy.

Accepted Answer

A) True 
 B)False

Question 11

In a just-in-time environment, managing the production process focuses on

Accepted Answer

A)  total processing time per unit. 
B)  allocating overhead more accurately. 
C)  reducing inventories. 
D)  units produced per direct labor hour. 
A)  total processing time per unit. 
B)  allocating overhead more accurately. 
C)  reducing inventories. 
D)  units produced per direct labor hour.

Question 12

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

Accepted Answer

A)  Reduction of space needed to store inventory 
B)  Inventory turnover 
C)  Inventory accuracy 
D)  Inventory size reduction 
A)  Reduction of space needed to store inventory 
B)  Inventory turnover 
C)  Inventory accuracy 
D)  Inventory size reduction

Question 13

President/CEO to her Controller:
"On the golf course yesterday I overheard John Jeffers, the CEO for Octal, say that the problem with many manufacturing companies today is their antiquated manufacturing cost accounting systems. It appears to me that our cost accounting system has served us well as our company has grown and should continue to serve us well as we move into JIT production with our new flexible manufacturing system."
As the Controller, respond to the President/CEO.

Accepted Answer

As Controller, I would respond that the

Question 14

The actual amount of time that a product is being worked on is known as the

Accepted Answer

A)  moving time. 
B)  inspection time. 
C)  processing time. 
D)  queue time. 
A)  moving time. 
B)  inspection time. 
C)  processing time. 
D)  queue time.

Question 15

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

Accepted Answer

A)  operations 
B)  batch 
C)  unit 
D)  product 
A)  operations 
B)  batch 
C)  unit 
D)  product

Question 16

One element of a just-in-time operating environment is pull-through production, which means that a firm starts production of a product only after an order is received.

Accepted Answer

A) True 
 B)False

Question 17

Hugley Corp. recently installed three just-in-time work areas in its blank key-making division. The work areas will make large quantities of identical key blanks for door lock manufacturers. Select the best answer for how Hugley should run its business and account for product costs.

Accepted Answer

A)  Backflush costing 
B)  ABC 
C)  JIT and ABM 
D)  ABC and backflush costing 
A)  Backflush costing 
B)  ABC 
C)  JIT and ABM 
D)  ABC and backflush costing

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements about a just-in-time operating environment is true?

Accepted Answer

A)  Simplicity and quality are good, but inventories and nonvalue-adding activities are not. 
B)  Inventories are necessary to support the production function. 
C)  Just-in-time is based on push-through production concepts. 
D)  Just-in-time is based on the scientific management principles established by F.W. Taylor. 
A)  Simplicity and quality are good, but inventories and nonvalue-adding activities are not. 
B)  Inventories are necessary to support the production function. 
C)  Just-in-time is based on push-through production concepts. 
D)  Just-in-time is based on the scientific management principles established by F.W. Taylor.

Question 20

Distinguish between push-through and pull-through production methods. How does pull-through production meet the requirements of a just-in-time operating environment?

Accepted Answer

Using traditional operating procedures a

Exam 22: Activity-Based Systems-Abm and Lean

How does pull-through production help minimize inventories in a just-in-time operating environment?

A just-in-time operation would attempt to eliminate inspection time.

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

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

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

In a just-in-time operating environment, the key measure of cost incurred is

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

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

A goal of process value analysis (PVA) is to reduce nonvalue-adding activities. Outline a procedure a company could use to accomplish this goal.

Typically, there are seven levels in the cost hierarchy.

In a just-in-time environment, managing the production process focuses on

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

The actual amount of time that a product is being worked on is known as the

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

One element of a just-in-time operating environment is pull-through production, which means that a firm starts production of a product only after an order is received.

Hugley Corp. recently installed three just-in-time work areas in its blank key-making division. The work areas will make large quantities of identical key blanks for door lock manufacturers. Select the best answer for how Hugley should run its business and account for product costs.

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

Which of the following statements about a just-in-time operating environment is true?

Distinguish between push-through and pull-through production methods. How does pull-through production meet the requirements of a just-in-time operating environment?

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

The Changing Business Environment-A Managers Pers

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

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