Question 1

Figure 15-4     Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?

Accepted Answer

A)  Product A because it has the highest total cycle time 
B)  Product B because it has the highest individual cycle time in molding, the bottleneck department 
C)  Product A because the first two cycles are bottlenecks 
D)  Unable to determine from information given 
A)  Product A because it has the highest total cycle time 
B)  Product B because it has the highest individual cycle time in molding, the bottleneck department 
C)  Product A because the first two cycles are bottlenecks 
D)  Unable to determine from information given

Question 2

Information about Roosevelt Corporation is as follows:   What is the price-recovery component?

Accepted Answer

A)  $1,925 
B)  ($96,025) 
C)  $96,025 
D)  $94,100 
A)  $1,925 
B)  ($96,025) 
C)  $96,025 
D)  $94,100

Question 3

The JIT solution

Accepted Answer

A)  requires carrying materials inventory in order to lower the cost of inventory without production delays. 
B)  requires selection of vendors based on lowest cost alone. 
C)  exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement. 
D)  requires a solid forecast to push production. 
A)  requires carrying materials inventory in order to lower the cost of inventory without production delays. 
B)  requires selection of vendors based on lowest cost alone. 
C)  exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement. 
D)  requires a solid forecast to push production.

Question 4

The productivity ratio used as a partial operational productivity measure is calculated as follows

Accepted Answer

A)  Output/Input. 
B)  Input/Output. 
C)  Input/Costs. 
D)  Input/Sales. 
A)  Output/Input. 
B)  Input/Output. 
C)  Input/Costs. 
D)  Input/Sales.

Question 5

Why might labor costs be reduced in a value stream system?

Accepted Answer

A)  The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers. 
B)  The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams. 
C)  Some of the workers can be cross-trained to perform value-added activities within the value stream. 
D)  none of the above. 
A)  The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers. 
B)  The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams. 
C)  Some of the workers can be cross-trained to perform value-added activities within the value stream. 
D)  none of the above.

Question 6

The worth of one or more features of a product for which customers are willing to pay is called __________ .

Accepted Answer

The answer of The worth of one or more features...

Question 7

Value-stream costing reports the actual revenues and actual costs on a weekly basis for each value stream.

Accepted Answer

A) True 
 B)False

Question 8

Information about Remarkable Corporation is as follows:   What is the partial operational productivity measure for materials for 2014?

Accepted Answer

A)  1.42 
B)  2.22 
C)  1.80 
D)  1.60 
A)  1.42 
B)  2.22 
C)  1.80 
D)  1.60

Question 9

Figure 15-1 The following information relates to Lancashire Manufacturing:
To produce a unit of product:
  There is a wait time of 8 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 12 minutes.
Refer to Figure 15-1. How long does it take to produce a batch of 20 units under a traditional manufacturing approach?

Accepted Answer

A)  380 minutes 
B)  415 minutes 
C)  35 minutes 
D)  none of the above 
A)  380 minutes 
B)  415 minutes 
C)  35 minutes 
D)  none of the above

Question 10

The order fulfillment value stream focuses on

Accepted Answer

A)  developing new products for new customers. 
B)  providing current products to current customers. 
C)  providing current products to new customers and new products to new customers. 
D)  the production, sale, and delivery of products. 
A)  developing new products for new customers. 
B)  providing current products to current customers. 
C)  providing current products to new customers and new products to new customers. 
D)  the production, sale, and delivery of products.

Question 11

The following information is supplied by the Mountain State Company:   What is the partial operational productivity measure for materials for 2014?

Accepted Answer

A)  0.3125 
B)  3.2000 
C)  0.6250 
D)  3.2500 
A)  0.3125 
B)  3.2000 
C)  0.6250 
D)  3.2500

Question 12

The point at which for any mix of inputs that will produce a given output, no more of any one input is used than is absolutely necessary is called:

Accepted Answer

A)  Input trade-off efficiency 
B)  Technical efficiency 
C)  Total productive efficiency 
D)  Productivity 
A)  Input trade-off efficiency 
B)  Technical efficiency 
C)  Total productive efficiency 
D)  Productivity

Question 13

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Accepted Answer

A)  the products are similar and consume resources in approximately the same proportion. 
B)  the product mix is relatively stable. 
C)  the products are homogenous. 
D)  all of the above. 
A)  the products are similar and consume resources in approximately the same proportion. 
B)  the product mix is relatively stable. 
C)  the products are homogenous. 
D)  all of the above.

Question 14

Profile measurement provides a series of profiles for all operational measures.

Accepted Answer

A) True 
 B)False

Question 15

The productivity measure(s) that are expressed in physical terms is(are) called:

Accepted Answer

A)  Financial productivity measures 
B)  Partial productivity measurement 
C)  Operational productivity measures 
D)  Productivity measurement 
A)  Financial productivity measures 
B)  Partial productivity measurement 
C)  Operational productivity measures 
D)  Productivity measurement

Question 16

Which of the following statements is NOT true about the box scorecard?

Accepted Answer

A)  Operational, non-financial measures are only used at the department level. 
B)  There is a comparison of operational, capacity, and financial metrics. 
C)  The lean control approach uses a mixture of financial and non-financial measures for the value stream. 
D)  A weekly product cost is reported in the box scorecard. 
A)  Operational, non-financial measures are only used at the department level. 
B)  There is a comparison of operational, capacity, and financial metrics. 
C)  The lean control approach uses a mixture of financial and non-financial measures for the value stream. 
D)  A weekly product cost is reported in the box scorecard.

Question 17

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Accepted Answer

A)  variable costing 
B)  features and characteristics costing 
C)  absorption costing 
D)  functional costing 
A)  variable costing 
B)  features and characteristics costing 
C)  absorption costing 
D)  functional costing

Question 18

Lampost Manufacturing provides the following information:
To produce a unit of product:
   There is a wait time of 5 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 8 minutes.
Required:

Accepted Answer

SUPPORTING

Question 19

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

Accepted Answer

A)  waste can be eliminated at the activity and process level without knowing product costs. 
B)  a fully accurate product cost is not needed for many decisions. 
C)  standard costing variances may actually impede improvement decisions. 
D)  all of the above. 
A)  waste can be eliminated at the activity and process level without knowing product costs. 
B)  a fully accurate product cost is not needed for many decisions. 
C)  standard costing variances may actually impede improvement decisions. 
D)  all of the above.

Question 20

The pursuit of perfection is realized in

Accepted Answer

A)  zero setup times. 
B)  producing on demand. 
C)  maximizing customer value. 
D)  all of the above. 
A)  zero setup times. 
B)  producing on demand. 
C)  maximizing customer value. 
D)  all of the above.

Figure 15-4 Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?

Information about Roosevelt Corporation is as follows: What is the price-recovery component?

The JIT solution

The productivity ratio used as a partial operational productivity measure is calculated as follows

Why might labor costs be reduced in a value stream system?

The worth of one or more features of a product for which customers are willing to pay is called __________ .

Value-stream costing reports the actual revenues and actual costs on a weekly basis for each value stream.

Information about Remarkable Corporation is as follows: What is the partial operational productivity measure for materials for 2014?

The order fulfillment value stream focuses on

The following information is supplied by the Mountain State Company: What is the partial operational productivity measure for materials for 2014?

The point at which for any mix of inputs that will produce a given output, no more of any one input is used than is absolutely necessary is called:

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Profile measurement provides a series of profiles for all operational measures.

The productivity measure(s) that are expressed in physical terms is(are) called:

Which of the following statements is NOT true about the box scorecard?

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

The pursuit of perfection is realized in

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 15: Lean Accounting and Productivity Measurement

Figure 15-4 Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?

Information about Roosevelt Corporation is as follows: What is the price-recovery component?

The JIT solution

The productivity ratio used as a partial operational productivity measure is calculated as follows

Why might labor costs be reduced in a value stream system?

The worth of one or more features of a product for which customers are willing to pay is called __________ .

Value-stream costing reports the actual revenues and actual costs on a weekly basis for each value stream.

Information about Remarkable Corporation is as follows: What is the partial operational productivity measure for materials for 2014?

The order fulfillment value stream focuses on

The following information is supplied by the Mountain State Company: What is the partial operational productivity measure for materials for 2014?

The point at which for any mix of inputs that will produce a given output, no more of any one input is used than is absolutely necessary is called:

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Profile measurement provides a series of profiles for all operational measures.

The productivity measure(s) that are expressed in physical terms is(are) called:

Which of the following statements is NOT true about the box scorecard?

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

The pursuit of perfection is realized in

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters