Question 1

A backflush accounting system uses work in process inventories as control points between each process step.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is (are) objective(s) of just-in-time (JIT) manufacturing?

Accepted Answer

A)  eliminating waste 
B)  increasing inventory levels 
C)  increased number of inspections 
D)  all of the above 
A)  eliminating waste 
B)  increasing inventory levels 
C)  increased number of inspections 
D)  all of the above A

Question 3

Schedule of Activity Costs   From the above schedule of activity costs, determine the non-value-added costs.

Accepted Answer

A)  $30,000 
B)  $50,000 
C)  $64,000 
D)  $85,000 
A)  $30,000 
B)  $50,000 
C)  $64,000 
D)  $85,000 C

Question 4

Reducing wait time is not linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following drives work-in-process inventory levels higher?

Accepted Answer

A)  Machine breakdowns 
B)  Production rate losses 
C)  Rework processes 
D)  All of the above 
A)  Machine breakdowns 
B)  Production rate losses 
C)  Rework processes 
D)  All of the above

Question 6

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

Accepted Answer

A) True 
 B)False

Question 7

Reducing wait time is directly linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 8

A quality control activity analysis indicated the following four activity costs of a hotel.

Accepted Answer

Sales are $750,000 f

Question 9

In the just-in-time (JIT) philosophy, unexpected downtime is the result of unreliable processes.

Accepted Answer

A) True 
 B)False

Question 10

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 11

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

Accepted Answer

A) True 
 B)False

Question 12

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. From the foregoing information, determine the production costs transferred to Finished Goods during August.

Accepted Answer

A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600 
A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600

Question 13

One inherent risk to using just-in-time philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than the traditional philosophy.

Accepted Answer

A) True 
 B)False

Question 14

In a just-in-time (JIT) environment, raw materials are delivered less frequently than in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 15

The local college is aggressively working in reducing the time that a student needs to enroll for each semester. Which of the following changes would not help achieve this goal?

Accepted Answer

A)  Counselors are specializing in common degree plans 
B)  One application is good at the community college and at the transferring university 
C)  A one stop area includes admissions, advising, registration and student ID's 
D)  Having more number of counters to facilitate admission process 
A)  Counselors are specializing in common degree plans 
B)  One application is good at the community college and at the transferring university 
C)  A one stop area includes admissions, advising, registration and student ID's 
D)  Having more number of counters to facilitate admission process

Question 16

Schedule of Activity Costs   From the above schedule of activity costs, determine the appraisal costs.

Accepted Answer

A)  $50,000 
B)  $23,000 
C)  $73,000 
D)  $104,000 
A)  $50,000 
B)  $23,000 
C)  $73,000 
D)  $104,000

Question 17

Which of the following is characteristic of the traditional cost system?

Accepted Answer

A)  Many work in process account transactions. 
B)  Reliance on financial performance measures. 
C)  Many process control points. 
D)  All of the above. 
A)  Many work in process account transactions. 
B)  Reliance on financial performance measures. 
C)  Many process control points. 
D)  All of the above.

Question 18

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

Accepted Answer

A)  traditional 
B)  just-in-time 
C)  total quality management 
D)  product cost 
A)  traditional 
B)  just-in-time 
C)  total quality management 
D)  product cost

Question 19

Which of the following is characteristic of the just-in-time system?

Accepted Answer

A)  Fewer work in process account transactions. 
B)  Work in process and raw materials accounts combined. 
C)  Elimination of the direct labor account. 
D)  All of the above. 
A)  Fewer work in process account transactions. 
B)  Work in process and raw materials accounts combined. 
C)  Elimination of the direct labor account. 
D)  All of the above.

Question 20

In a just-in-time (JIT) system, indirect labor is traced directly to product cells.

Accepted Answer

A) True 
 B)False

A backflush accounting system uses work in process inventories as control points between each process step.

Which of the following is (are) objective(s) of just-in-time (JIT) manufacturing?

Schedule of Activity Costs From the above schedule of activity costs, determine the non-value-added costs.

Reducing wait time is not linked to reducing inventory.

Which of the following drives work-in-process inventory levels higher?

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

Reducing wait time is directly linked to reducing inventory.

A quality control activity analysis indicated the following four activity costs of a hotel.

In the just-in-time (JIT) philosophy, unexpected downtime is the result of unreliable processes.

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

One inherent risk to using just-in-time philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than the traditional philosophy.

In a just-in-time (JIT) environment, raw materials are delivered less frequently than in a traditional environment.

The local college is aggressively working in reducing the time that a student needs to enroll for each semester. Which of the following changes would not help achieve this goal?

Schedule of Activity Costs From the above schedule of activity costs, determine the appraisal costs.

Which of the following is characteristic of the traditional cost system?

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

Which of the following is characteristic of the just-in-time system?

In a just-in-time (JIT) system, indirect labor is traced directly to product cells.

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Filters

Exam 12: Cost Management for Just-In-Time Environments

A backflush accounting system uses work in process inventories as control points between each process step.

Which of the following is (are) objective(s) of just-in-time (JIT) manufacturing?

Schedule of Activity Costs From the above schedule of activity costs, determine the non-value-added costs.

Reducing wait time is not linked to reducing inventory.

Which of the following drives work-in-process inventory levels higher?

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

Reducing wait time is directly linked to reducing inventory.

A quality control activity analysis indicated the following four activity costs of a hotel.

In the just-in-time (JIT) philosophy, unexpected downtime is the result of unreliable processes.

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

One inherent risk to using just-in-time philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than the traditional philosophy.

In a just-in-time (JIT) environment, raw materials are delivered less frequently than in a traditional environment.

The local college is aggressively working in reducing the time that a student needs to enroll for each semester. Which of the following changes would not help achieve this goal?

Schedule of Activity Costs From the above schedule of activity costs, determine the appraisal costs.

Which of the following is characteristic of the traditional cost system?

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

Which of the following is characteristic of the just-in-time system?

In a just-in-time (JIT) system, indirect labor is traced directly to product cells.

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Filters