Question 1

A setup is the time required to prepare an operation for a new production run.

Accepted Answer

A) True 
 B)False

Question 2

Accounting for just-in-time operations requires fewer transactions because

Accepted Answer

A)  large batches of inventory are combined in a smaller number of transactions. 
B)  costs are accumulated in one department and then transferred to the next department. 
C)  combined material and conversion costs are transferred to finished goods. 
D)  costs are transferred from department to department allowing for better controls in costs. 
A)  large batches of inventory are combined in a smaller number of transactions. 
B)  costs are accumulated in one department and then transferred to the next department. 
C)  combined material and conversion costs are transferred to finished goods. 
D)  costs are transferred from department to department allowing for better controls in costs.

Question 3

Schedule of Activity Costs

Accepted Answer

From the above sched

Question 4

Christmas Express makes wreaths in batch sizes of 12. The cutting & assembly process takes 7 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 12 minutes to move the wreaths from the cutting & assembly process to the decorating process.
(a) Compute the value-added, non-value-added, and the total lead time of the wreath process.
(b) Compute the value-added ratio. Round to the nearest decimal.

Accepted Answer

(a)
 @#IMG-DLM& (b)

Question 5

Schedule of Activity Costs

Accepted Answer

From the above schedule, compu

Question 6

Which of the following is best suited to providing timely and focused performance information?

Accepted Answer

A)  non-financial information 
B)  financial accounting information 
C)  cost accounting information 
D)  variance analysis 
A)  non-financial information 
B)  financial accounting information 
C)  cost accounting information 
D)  variance analysis

Question 7

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

Accepted Answer

A) True 
 B)False

Question 8

What do just-in-time (JIT) manufacturers demand from their vendors?

Accepted Answer

A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above 
A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above

Question 9

Which of the following is not an external failure cost?

Accepted Answer

A)  warranty work 
B)  processing returned merchandise 
C)  rework 
D)  correcting invoice errors 
A)  warranty work 
B)  processing returned merchandise 
C)  rework 
D)  correcting invoice errors

Question 10

Push manufacturing is also referred to as make-to-order processing.

Accepted Answer

A) True 
 B)False

Question 11

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 Cost of Goods Sold 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 12

Financial accounting information is used more often for long-term operating decisions and non-financial information is used more often for day-to-day decisions.

Accepted Answer

A) True 
 B)False

Question 13

Lead time reduction can be a cost-saving goal for any processed item.

Accepted Answer

A) True 
 B)False

Question 14

Schedule of Activity Costs

Accepted Answer

From the above schedule, calcu

Question 15

Just-in-Time (JIT) manufacturing is also called make-to-order manufacturing.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is correct?

Accepted Answer

A)  Costs of controlling quality include prevention and appraisal costs. 
B)  Costs of failing to control quality include internal and external failure costs. 
C)  A and B are both correct. 
D)  A and B are both incorrect. 
A)  Costs of controlling quality include prevention and appraisal costs. 
B)  Costs of failing to control quality include internal and external failure costs. 
C)  A and B are both correct. 
D)  A and B are both incorrect.

Question 17

How are the objectives of just-in-time (JIT) manufacturing achieved?

Accepted Answer

A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above 
A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above

Question 18

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

Accepted Answer

A) True 
 B)False

A setup is the time required to prepare an operation for a new production run.

Accounting for just-in-time operations requires fewer transactions because

Schedule of Activity Costs

Schedule of Activity Costs

Which of the following is best suited to providing timely and focused performance information?

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

What do just-in-time (JIT) manufacturers demand from their vendors?

Which of the following is not an external failure cost?

Push manufacturing is also referred to as make-to-order processing.

Financial accounting information is used more often for long-term operating decisions and non-financial information is used more often for day-to-day decisions.

Lead time reduction can be a cost-saving goal for any processed item.

Schedule of Activity Costs

Just-in-Time (JIT) manufacturing is also called make-to-order manufacturing.

Which of the following statements is correct?

How are the objectives of just-in-time (JIT) manufacturing achieved?

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

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

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

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 setup is the time required to prepare an operation for a new production run.

Accounting for just-in-time operations requires fewer transactions because

Schedule of Activity Costs

Schedule of Activity Costs

Which of the following is best suited to providing timely and focused performance information?

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

What do just-in-time (JIT) manufacturers demand from their vendors?

Which of the following is not an external failure cost?

Push manufacturing is also referred to as make-to-order processing.

Financial accounting information is used more often for long-term operating decisions and non-financial information is used more often for day-to-day decisions.

Lead time reduction can be a cost-saving goal for any processed item.

Schedule of Activity Costs

Just-in-Time (JIT) manufacturing is also called make-to-order manufacturing.

Which of the following statements is correct?

How are the objectives of just-in-time (JIT) manufacturing achieved?

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

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

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

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