Question 1

Which of the following statements is true?

Accepted Answer

A) A company's value chain is not part of its supply chain. 
B) A manufacturer's supply chain typically includes research and development and customer service. 
C) A company's supply chain includes the value chains of its suppliers. 
D) Your supplier's suppliers are part of your value chain. 
A) A company's value chain is not part of its supply chain. 
B) A manufacturer's supply chain typically includes research and development and customer service. 
C) A company's supply chain includes the value chains of its suppliers. 
D) Your supplier's suppliers are part of your value chain.

Question 2

For a manufacturer,materials storage is a value-adding activity.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true of nonvalue-adding activities?

Accepted Answer

A) They are unnecessary activities. 
B) They are included in the value chain of activities. 
C) They are wasteful and targeted for elimination. 
D) They add cost to a product or service but does not increase its market value. 
A) They are unnecessary activities. 
B) They are included in the value chain of activities. 
C) They are wasteful and targeted for elimination. 
D) They add cost to a product or service but does not increase its market value.

Question 4

How do managers measure an activity's performance?

Accepted Answer

Managers can measure an activity's perfo

Question 5

The customer's perspective governs whether an activity adds value to a product or service.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 e

Question 8

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

Accepted Answer

A) top management. 
B) each department manager. 
C) the board of directors 
D) everyone in the company. 
A) top management. 
B) each department manager. 
C) the board of directors 
D) everyone in the company.

Question 9

Traditional costing and backflush costing provide the same ending balances only when there is little or no ending inventory.

Accepted Answer

A) True 
 B)False

Question 10

Activity-based management includes all of the following except identifying

Accepted Answer

A) the level of customer satisfaction with a product or service. 
B) the resources that are consumed by each activity. 
C) activities as value-adding. 
D) how resources are consumed by each activity. 
A) the level of customer satisfaction with a product or service. 
B) the resources that are consumed by each activity. 
C) activities as value-adding. 
D) how resources are consumed by each activity.

Question 11

Which of the following is included in full product cost?

Accepted Answer

A) All direct labor and direct material costs and all production and nonproduction costs. 
B) Only nonproduction costs. 
C) Only the costs of direct material. 
D) Only the costs of direct labor. 
A) All direct labor and direct material costs and all production and nonproduction costs. 
B) Only nonproduction costs. 
C) Only the costs of direct material. 
D) Only the costs of direct labor.

Question 12

Activity costs per unit equal total volume divided by total activity costs.

Accepted Answer

A) True 
 B)False

Question 13

In just-in-time manufacturing,the basic cost classifications used in product costing are materials and overhead costs.

Accepted Answer

A) True 
 B)False

Question 14

A goal of the 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 15

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 16

The JIT operating philosophy requires a push-through production system.

Accepted Answer

A) True 
 B)False

Question 17

Backflush costing aims at decreasing waste in the production process.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Last year,Amanda Jones opened an ice cream parlor in a busy shopping center.She spent a lot on advertising and attracted many customers into the store,but a few customers made turned up 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,yet again,sales were lost.What measures should Amanda take to improve her business?

Accepted Answer

Amanda has learned that valuing customer

Question 20

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

Accepted Answer

A) JIT 
B) ABM 
C) both ABM and JIT 
D) neither ABM nor JIT 
A) JIT 
B) ABM 
C) both ABM and JIT 
D) neither ABM nor JIT

Exam 18: Value-Based Systems: Activity-Based Costing and Lean Accounting

Which of the following statements is true?

For a manufacturer,materials storage is a value-adding activity.

Which of the following statements is true of nonvalue-adding activities?

How do managers measure an activity's performance?

The customer's perspective governs whether an activity adds value to a product or service.

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

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

Traditional costing and backflush costing provide the same ending balances only when there is little or no ending inventory.

Activity-based management includes all of the following except identifying

Which of the following is included in full product cost?

Activity costs per unit equal total volume divided by total activity costs.

In just-in-time manufacturing,the basic cost classifications used in product costing are materials and overhead costs.

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

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.

The JIT operating philosophy requires a push-through production system.

Backflush costing aims at decreasing waste in the production process.

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

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

Uses of Accounting Information and the Financial Statements

Measurement Concepts: Recording Business Transactions

Measuring Business Income: Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long-Term Assets

Current Liabilities and Fair Value Accounting

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, including Target Costing and Transfer Pricing

Quality Management and Measurement

Accounting for Unincorporated Businesses

Accounting for Investments

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