Question 1

All of the following are internal control procedures that should be in place in the conversion cycle except

Accepted Answer

A) calculation and analysis of direct material and direct labor variances 
B) retention of excess materials by work centers 
C) physical count of inventory items on hand 
D) limited access to raw material and finished goods inventories 
A) calculation and analysis of direct material and direct labor variances 
B) retention of excess materials by work centers 
C) physical count of inventory items on hand 
D) limited access to raw material and finished goods inventories

Question 2

Discuss inventory control objectives.

Accepted Answer

Inventory control minimizes total invent

Question 3

Which of the following is not true?

Accepted Answer

A) The complexities of ABC have caused many firms to pursue value stream accounting. 
B) Value stream accounting captures costs related to value-added activities within a specified department or activity. 
C) An essential aspect in implementing value stream accounting is defining the product family. 
D) Value stream accounting makes no distinction between direct costs and indirect costs. 
A) The complexities of ABC have caused many firms to pursue value stream accounting. 
B) Value stream accounting captures costs related to value-added activities within a specified department or activity. 
C) An essential aspect in implementing value stream accounting is defining the product family. 
D) Value stream accounting makes no distinction between direct costs and indirect costs.

Question 4

Which statement is not correct?

Accepted Answer

A) General ledger creates a new cost record upon receipt of a work order from production planning and control. 
B) Cost accounting updates the cost record with data gathered from the materials requisition. 
C) General ledger posts summary information about the manufacturing process based on a journal voucher prepared by cost accounting. 
D) Cost accounting computes variances and applies overhead to individual cost records. 
A) General ledger creates a new cost record upon receipt of a work order from production planning and control. 
B) Cost accounting updates the cost record with data gathered from the materials requisition. 
C) General ledger posts summary information about the manufacturing process based on a journal voucher prepared by cost accounting. 
D) Cost accounting computes variances and applies overhead to individual cost records.

Question 5

What is a company's value stream?

Accepted Answer

A company's value stream inclu

Question 6

The internal control significance of the excess materials requisition is that it

Accepted Answer

A) indicates the amount of material released to work centers 
B) identifies materials used in production that exceed the standard amount allowed 
C) indicates the standard quantities required for production 
D) documents the return to raw materials inventory of unused production materials 
A) indicates the amount of material released to work centers 
B) identifies materials used in production that exceed the standard amount allowed 
C) indicates the standard quantities required for production 
D) documents the return to raw materials inventory of unused production materials

Question 7

Which function is not a part of the batch production process?

Accepted Answer

A) plan and control production 
B) prepare purchase orders 
C) maintain inventory control 
D) perform cost accounting 
A) plan and control production 
B) prepare purchase orders 
C) maintain inventory control 
D) perform cost accounting

Question 8

Lead time times daily demand is

Accepted Answer

A) the economic order quantity 
B) safety stock 
C) the reorder point 
D) total inventory 
A) the economic order quantity 
B) safety stock 
C) the reorder point 
D) total inventory

Question 9

All of the following are characteristics of batch processing except

Accepted Answer

A) each item in the batch is similar 
B) batches are produced in accordance with detailed customer specifications 
C) batches are produced to replenish depleted inventory levels 
D) setting up and retooling is required for different batches 
A) each item in the batch is similar 
B) batches are produced in accordance with detailed customer specifications 
C) batches are produced to replenish depleted inventory levels 
D) setting up and retooling is required for different batches

Question 10

How can a firm control against excessive quantities of raw materials being used in the manufacturing process?

Accepted Answer

The use of standard quantities provides

Question 11

Cement and petrochemicals are produced by the batch manufacturing method.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the purpose and key features of a value stream map (VSM).

Accepted Answer

The value stream map (VSM)graphically re

Question 13

Which situation violates the segregation of functions control procedure?

Accepted Answer

A) production planning and control is located apart from the work centers 
B) inventory control maintains custody of inventory items 
C) cost accounting has custody of and makes entries on cost records 
D) work centers record direct labor on job tickets 
A) production planning and control is located apart from the work centers 
B) inventory control maintains custody of inventory items 
C) cost accounting has custody of and makes entries on cost records 
D) work centers record direct labor on job tickets

Question 14

The objective of the economic order quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

Accepted Answer

A) True 
 B)False

Question 15

Firms are abandoning activity-based costing (ABC)because

Accepted Answer

A) it does not facilitate the analysis of variances 
B) it is complex and time consuming 
C) it does not recognize the importance of direct labor as a component of total manufacturing cost 
D) the financial nature of the reports does not permit comparisons to be made among different types of products 
A) it does not facilitate the analysis of variances 
B) it is complex and time consuming 
C) it does not recognize the importance of direct labor as a component of total manufacturing cost 
D) the financial nature of the reports does not permit comparisons to be made among different types of products

Question 16

The cost of poor quality includes all of the following except

Accepted Answer

A) cost of rework 
B) warranty claims 
C) scheduling delays 
D) proceeds from the sale of scrap 
A) cost of rework 
B) warranty claims 
C) scheduling delays 
D) proceeds from the sale of scrap

Question 17

What document signals the completion of the production process?

Accepted Answer

The receipt by cost accounting

Question 18

How does automation assist with the lean manufacturing philosophy?

Accepted Answer

Automation is at the heart of

Question 19

The philosophy of customer satisfaction permeates the world-class firm.

Accepted Answer

A) True 
 B)False

Question 20

The only objective of the just-in-time philosophy is to reduce inventory levels.

Accepted Answer

A) True 
 B)False

All of the following are internal control procedures that should be in place in the conversion cycle except

Discuss inventory control objectives.

Which of the following is not true?

Which statement is not correct?

What is a company's value stream?

The internal control significance of the excess materials requisition is that it

Which function is not a part of the batch production process?

Lead time times daily demand is

All of the following are characteristics of batch processing except

How can a firm control against excessive quantities of raw materials being used in the manufacturing process?

Cement and petrochemicals are produced by the batch manufacturing method.

Discuss the purpose and key features of a value stream map (VSM).

Which situation violates the segregation of functions control procedure?

The objective of the economic order quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

Firms are abandoning activity-based costing (ABC)because

The cost of poor quality includes all of the following except

What document signals the completion of the production process?

How does automation assist with the lean manufacturing philosophy?

The philosophy of customer satisfaction permeates the world-class firm.

The only objective of the just-in-time philosophy is to reduce inventory levels.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 7: The Conversion Cycle

All of the following are internal control procedures that should be in place in the conversion cycle except

Discuss inventory control objectives.

Which of the following is not true?

Which statement is not correct?

What is a company's value stream?

The internal control significance of the excess materials requisition is that it

Which function is not a part of the batch production process?

Lead time times daily demand is

All of the following are characteristics of batch processing except

How can a firm control against excessive quantities of raw materials being used in the manufacturing process?

Cement and petrochemicals are produced by the batch manufacturing method.

Discuss the purpose and key features of a value stream map (VSM).

Which situation violates the segregation of functions control procedure?

The objective of the economic order quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

Firms are abandoning activity-based costing (ABC)because

The cost of poor quality includes all of the following except

What document signals the completion of the production process?

How does automation assist with the lean manufacturing philosophy?

The philosophy of customer satisfaction permeates the world-class firm.

The only objective of the just-in-time philosophy is to reduce inventory levels.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters