Question 1

Which of the following is considered non-value-added lead time?

Accepted Answer

A)  packing 
B)  moving from process to process 
C)  converting raw materials to finished product 
D)  all of the above 
A)  packing 
B)  moving from process to process 
C)  converting raw materials to finished product 
D)  all of the above

Question 2

____ manufacturing philosophy emphasizes quality and zero defects.

Accepted Answer

A)  Traditional 
B)  Just-In-Time 
C)  Zero-Based 
D)  Strategic 
A)  Traditional 
B)  Just-In-Time 
C)  Zero-Based 
D)  Strategic

Question 3

Maximum effectiveness and efficiency are reached when the just-in-time (JIT) philosophy is used only by manufacturers.

Accepted Answer

A) True 
 B)False

Question 4

Make-to-order companies typically produce in small batch sizes.

Accepted Answer

A) True 
 B)False

Question 5

Setups are a significant time-consuming activity in traditional production environments.

Accepted Answer

A) True 
 B)False

Question 6

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 manufacturing cost per unit.

Accepted Answer

A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,870.50 
A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,870.50

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following results in long lead time?

Accepted Answer

A)  long setup times 
B)  large batch sizes 
C)  large inventories 
D)  all of the above 
A)  long setup times 
B)  large batch sizes 
C)  large inventories 
D)  all of the above

Question 9

In a just-in-time (JIT) system, direct labor is included in conversion costs.

Accepted Answer

A) True 
 B)False

Question 10

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

Accepted Answer

A) True 
 B)False

Question 11

Tucha Manufacturing Co. operates in a just-in-time (JIT) manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Tucha had budgeted conversion costs for February totaling $800,000 and budgeted production hours totaling 2,000.
Compute Tucha's budgeted cell conversion cost per unit for Cell Y12.

Accepted Answer

Budgeted cell conversion cost

Question 12

A just-in-time non-manufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  inventories are maintained at higher levels. 
B)  process problems cause production to shut down immediately. 
C)  the push manufacturing system leads to increased inventory level. 
D)  the lack of work in process inventory creates problems. 
A)  inventories are maintained at higher levels. 
B)  process problems cause production to shut down immediately. 
C)  the push manufacturing system leads to increased inventory level. 
D)  the lack of work in process inventory creates problems.

Question 15

The Thudaka Company has budgeted its conversion cost for the small lamp production as $65,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. the estimated material cost is $18 per unit. Provide the following journal entries.
(a) Materials are purchased to produce 4,000 units.
(b) Conversion costs are applied to 3,800 units of production.
(c) 3,650 units are placed into finished goods.

Accepted Answer

The answer of The Thudaka Company has budgeted its conversion...

Question 16

Logan 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 year planned labor and overhead was $76,800,000; materials costs, $25 per unit. Planned production included 9,600 hours to produce 76,800 motor drives. Actual production for the month of August was 5,200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted cell conversion cost per hour.

Accepted Answer

A)  $8,025 
B)  $800 
C)  $7,200 
D)  $8,000 
A)  $8,025 
B)  $800 
C)  $7,200 
D)  $8,000

Question 17

Traditional manufacturing emphasizes all of the following except

Accepted Answer

A)  team oriented employee involvement 
B)  process-oriented layout 
C)  push manufacturing 
D)  cost accumulation by department 
A)  team oriented employee involvement 
B)  process-oriented layout 
C)  push manufacturing 
D)  cost accumulation by department

Question 18

Within-batch wait time increases total lead time.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  $62,000 
B)  $179,000 
C)  $94,000 
D)  $241,000 
A)  $62,000 
B)  $179,000 
C)  $94,000 
D)  $241,000

Question 20

Which of the following is not a prevention cost?

Accepted Answer

A)  preventive maintenance 
B)  operator training 
C)  design engineering 
D)  testing finished products 
A)  preventive maintenance 
B)  operator training 
C)  design engineering 
D)  testing finished products

Which of the following is considered non-value-added lead time?

____ manufacturing philosophy emphasizes quality and zero defects.

Maximum effectiveness and efficiency are reached when the just-in-time (JIT) philosophy is used only by manufacturers.

Make-to-order companies typically produce in small batch sizes.

Setups are a significant time-consuming activity in traditional production environments.

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

Which of the following results in long lead time?

In a just-in-time (JIT) system, direct labor is included in conversion costs.

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

A just-in-time non-manufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

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

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

Traditional manufacturing emphasizes all of the following except

Within-batch wait time increases total lead time.

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

Which of the following is not a prevention cost?

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

Which of the following is considered non-value-added lead time?

____ manufacturing philosophy emphasizes quality and zero defects.

Maximum effectiveness and efficiency are reached when the just-in-time (JIT) philosophy is used only by manufacturers.

Make-to-order companies typically produce in small batch sizes.

Setups are a significant time-consuming activity in traditional production environments.

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

Which of the following results in long lead time?

In a just-in-time (JIT) system, direct labor is included in conversion costs.

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

A just-in-time non-manufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

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

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

Traditional manufacturing emphasizes all of the following except

Within-batch wait time increases total lead time.

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

Which of the following is not a prevention cost?

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