Exam 20: Value-Based Systems: Activity-Based Costing and Lean Accounting

When managing inventory in a just-in-time environment,the need of controlling workers does not exists.

From the four selections below,identify which are necessary to develop the value chain of a product or service. 1.Processes $\quad$$\quad$$\quad$ 3.Nonvalue-adding activities 2)Departments $\quad$$\quad$ 4.Value-adding activities

A non value-adding activity is one that adds cost to a product or service but does not increase its market value.

A bill of activities will complicate the estimation of profits of a company.

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

Which of the following creates a flexible work cell in a just-in-time manufacturing environment?

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

Which of the following statements contradicts the philosophy underlying the just-in-time operating environment?

Traditional environments emphasize functional departments that tend to group similar activities together.

Backflush costing aims at decreasing waste in the production process.

According to the just-in-time philosophy,

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

Activity-based management is an extension of activity-based costing.

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

How do managers measure an activity's performance?

A change to just-in-time manufacturing expands mainly the role of the

In a just-in-time environment,

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

Activity-based costing is the tool used in an ABM environment to assign activity costs to cost objects.

In the JIT environment,direct materials and conversion costs will vary significantly for each product in a work cell.