Question 1

Examples of transforming a traditional manufacturing environment to a just-in-time environment is to do all of the following except

Accepted Answer

A)  form partnerships with reliable suppliers. 
B)  reorganize operational processes to organized product lines. 
C)  train employees to perform various operations. 
D)  increase raw materials to produce more thereby increasing finished goods inventory. 
A)  form partnerships with reliable suppliers. 
B)  reorganize operational processes to organized product lines. 
C)  train employees to perform various operations. 
D)  increase raw materials to produce more thereby increasing finished goods inventory.

Question 2

In a just-in-time (JIT) environment, process problems are less visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 3

Schedule of Activity Costs

Accepted Answer

From the above sched

Question 4

____ manufacturing deals with several suppliers in hopes of finding the best price.

Accepted Answer

A)  Traditional 
B)  Just-In-Time 
C)  Economic 
D)  Productivity improvement 
A)  Traditional 
B)  Just-In-Time 
C)  Economic 
D)  Productivity improvement

Question 5

Kilbuck Manufacturing operates in a just-in-time manufacturing environment. Kilbuck's actual conversion costs for the month of April follow:   The journal entry to record April's conversion costs will include:

Accepted Answer

A)  a debit to Work in Process Inventory 
B)  a debit to Raw Materials Inventory 
C)  a credit to Raw and In Process Inventory 
D)  a debit to Raw and In Process Inventory 
A)  a debit to Work in Process Inventory 
B)  a debit to Raw Materials Inventory 
C)  a credit to Raw and In Process Inventory 
D)  a debit to Raw and In Process Inventory

Question 6

Just-in-time manufacturing philosophy reduces all of the following except

Accepted Answer

A)  inventory 
B)  setup time 
C)  lead time 
D)  overhead costs 
A)  inventory 
B)  setup time 
C)  lead time 
D)  overhead costs

Question 7

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  $177,000 
B)  $191,000 
C)  $156,000 
D)  $104,000 
A)  $177,000 
B)  $191,000 
C)  $156,000 
D)  $104,000

Question 9

In a just-in-time (JIT) environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Accepted Answer

A) True 
 B)False

Question 10

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

A) True 
 B)False

Question 11

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  $30,000 
B)  $74,000 
C)  $76,000 
D)  $104,000 
A)  $30,000 
B)  $74,000 
C)  $76,000 
D)  $104,000

Question 13

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 amount of the conversion costs charged to Raw and In Process Inventory 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 14

Make-to-order companies produce mainly to stock inventory.

Accepted Answer

A) True 
 B)False

Question 15

Lead time is the process time between start and completion.

Accepted Answer

A) True 
 B)False

Question 16

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 17

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements best describes the relationship among the costs of quality?

Accepted Answer

A)  Spending more on prevention and appraisal costs will reduce the total overall costs of quality. 
B)  Spending more on prevention and appraisal costs will increase the total overall costs of quality. 
C)  Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. 
D)  The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs. 
A)  Spending more on prevention and appraisal costs will reduce the total overall costs of quality. 
B)  Spending more on prevention and appraisal costs will increase the total overall costs of quality. 
C)  Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. 
D)  The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs.

Question 19

Costs of failing to control quality include prevention costs and external failure costs.

Accepted Answer

A) True 
 B)False

Question 20

Inventory reduction is a ____ principle.

Accepted Answer

A)  just-in-time 
B)  traditional processing 
C)  economic 
D)  wait time 
A)  just-in-time 
B)  traditional processing 
C)  economic 
D)  wait time

Examples of transforming a traditional manufacturing environment to a just-in-time environment is to do all of the following except

In a just-in-time (JIT) environment, process problems are less visible than they are in a traditional environment.

Schedule of Activity Costs

____ manufacturing deals with several suppliers in hopes of finding the best price.

Kilbuck Manufacturing operates in a just-in-time manufacturing environment. Kilbuck's actual conversion costs for the month of April follow: The journal entry to record April's conversion costs will include:

Just-in-time manufacturing philosophy reduces all of the following except

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

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

In a just-in-time (JIT) environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Employee involvement does not include performing any indirect manufacturing functions.

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

Make-to-order companies produce mainly to stock inventory.

Lead time is the process time between start and completion.

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Which of the following statements best describes the relationship among the costs of quality?

Costs of failing to control quality include prevention costs and external failure costs.

Inventory reduction is a ____ principle.

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

Examples of transforming a traditional manufacturing environment to a just-in-time environment is to do all of the following except

In a just-in-time (JIT) environment, process problems are less visible than they are in a traditional environment.

Schedule of Activity Costs

____ manufacturing deals with several suppliers in hopes of finding the best price.

Kilbuck Manufacturing operates in a just-in-time manufacturing environment. Kilbuck's actual conversion costs for the month of April follow: The journal entry to record April's conversion costs will include:

Just-in-time manufacturing philosophy reduces all of the following except

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

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

In a just-in-time (JIT) environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Employee involvement does not include performing any indirect manufacturing functions.

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

Make-to-order companies produce mainly to stock inventory.

Lead time is the process time between start and completion.

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Which of the following statements best describes the relationship among the costs of quality?

Costs of failing to control quality include prevention costs and external failure costs.

Inventory reduction is a ____ principle.

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