Question 1

Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs:

Accepted Answer

All costs are driven by machin

Question 2

The just-in-time (JIT) philosophy attempts to reduce setup times, which will:

Accepted Answer

A)  increase batch sizes 
B)  not affect batch sizes 
C)  increase within-batch wait time 
D)  decrease within-batch wait time 
A)  increase batch sizes 
B)  not affect batch sizes 
C)  increase within-batch wait time 
D)  decrease within-batch wait time

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Cariboo Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds. Annual budgeted cell conversion costs were as follows:

Accepted Answer

Cariboo planned 2,500 total machine hour

Question 5

Under the just-in-time production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are features of the just-in-time manufacturing system?
(a) maintaining excess inventory to ensure that products will always be available
(b) cross training of employees
(c) giving employees additional authority and responsibility
(d) product oriented layout
(e) increased set-up time

Accepted Answer

The answer of Which of the following are features of...

Question 7

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

Accepted Answer

A)  $39,000 
B)  $19,000 
C)  $12,000 
D)  $31,000 
A)  $39,000 
B)  $19,000 
C)  $12,000 
D)  $31,000

Question 8

Which of the following is an example of value-added time?

Accepted Answer

A)  Processing time 
B)  Wait time during inspection 
C)  Wait time in inventory 
D)  Both B and C 
A)  Processing time 
B)  Wait time during inspection 
C)  Wait time in inventory 
D)  Both B and C

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Lead time includes both value-added time and non-value-added time.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  $37,000 
B)  $25,000 
C)  $8,000 
D)  $33,000 
A)  $37,000 
B)  $25,000 
C)  $8,000 
D)  $33,000

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

Accepted Answer

A) True 
 B)False

Question 14

The budgeted cell conversion cost rate includes which of the following?

Accepted Answer

A)  only factory overhead 
B)  only direct labor and direct materials 
C)  direct labor, direct materials, and factory overhead 
D)  only direct labor and factory overhead 
A)  only factory overhead 
B)  only direct labor and direct materials 
C)  direct labor, direct materials, and factory overhead 
D)  only direct labor and factory overhead

Question 15

A non-financial measure is operating information that has not been translated into dollars.

Accepted Answer

A) True 
 B)False

Question 16

In a just-in-time (JIT) system, the work in process and raw materials inventory accounts are combined.

Accepted Answer

A) True 
 B)False

Question 17

All lead time are considered as value-added lead time.

Accepted Answer

A) True 
 B)False

Question 18

Under a JIT environment, employees have the responsibility and authority to

Accepted Answer

A)  purchase inventory. 
B)  determine output amounts. 
C)  make decisions about operations, rather than waiting for management. 
D)  make engineering changes. 
A)  purchase inventory. 
B)  determine output amounts. 
C)  make decisions about operations, rather than waiting for management. 
D)  make engineering changes.

Question 19

Schedule of Activity Costs

Accepted Answer

From the above schedule, calcu

Question 20

Large batch sizes increase lead time.

Accepted Answer

A) True 
 B)False

Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs:

The just-in-time (JIT) philosophy attempts to reduce setup times, which will:

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

Cariboo Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds. Annual budgeted cell conversion costs were as follows:

Under the just-in-time production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

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

Which of the following is an example of value-added time?

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

Lead time includes both value-added time and non-value-added time.

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

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

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

The budgeted cell conversion cost rate includes which of the following?

A non-financial measure is operating information that has not been translated into dollars.

In a just-in-time (JIT) system, the work in process and raw materials inventory accounts are combined.

All lead time are considered as value-added lead time.

Under a JIT environment, employees have the responsibility and authority to

Schedule of Activity Costs

Large batch sizes increase lead time.

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

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

Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs:

The just-in-time (JIT) philosophy attempts to reduce setup times, which will:

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

Cariboo Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds. Annual budgeted cell conversion costs were as follows:

Under the just-in-time production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

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

Which of the following is an example of value-added time?

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

Lead time includes both value-added time and non-value-added time.

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

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

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

The budgeted cell conversion cost rate includes which of the following?

A non-financial measure is operating information that has not been translated into dollars.

In a just-in-time (JIT) system, the work in process and raw materials inventory accounts are combined.

All lead time are considered as value-added lead time.

Under a JIT environment, employees have the responsibility and authority to

Schedule of Activity Costs

Large batch sizes increase lead time.

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