Exam 22: Activity-Based Systems-Abm and Lean

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 unique luxury automobiles.

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

Process value analysis (PVA) identifies all activities of a production and/or assembly operation for the purpose of

Comparing activity-based management (ABM) and lean operations all of the following are correct except

Both the number of entries and the number of ledger accounts decrease when you change to a backflush costing system.

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

Last year, Amanda Jones opened a candy store in a busy shopping center. She spent a lot on advertising and attracted many customers into the store, but very few customers made purchases and sales were declining. Amanda paid attention to questions and requests made by customers and determined that they often requested items that were within the scope of her business but that she did not carry. When she offered to order items for her customers, delivery was usually too late and, again, sales were lost. What measures should Amanda take to improve her business?

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

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

Comparing the goals of activity-based management (ABM) and lean operations we can say that __________ aim(s) to simplify activities.

The use of computer monitoring allows product costs to be traced directly to work cells.

The JIT operating philosophy requires pull-through production system.