Exam 4: Value-Based Systems- Abm and Lean

According to the just-in-time philosophy,

Traditional environments emphasize functional departments that tend to group similar activities together.

When using a just-in-time system, what qualities should be used to evaluate a supplier?

Backflush costing eliminates the need to make journal entries during the period to track cost flows through the production process as the product is made.

Product throughput time refers to the amount of time that a product spends in a production cell.

When managing the production process in a just-in-time environment, the manager's focus is on throughput time.

Hugley Corp. recently installed three just-in-time work areas in its blank key-making division. The work areas will make large quantities of identical key blanks for door lock manufacturers. Select the best answer for how Hugley should run its business and account for product costs.

Both the number of entries and the number of ledger accounts decrease when you change to a backflush costing system.

For a manufacturer, the final customer is part of the supply chain and customer service is part of the value chain.

You have been invited to address the Students In Free Enterprise (SIFE) team of your alma mater. The topic the team has chosen is the just-in-time philosophy in terms that beginning business students can readily comprehend. The meeting is taking place in the college cafeteria. Reservations and menu choices have been made in advance. It has been suggested that you use that setting as an example of the implementation of a JIT operating system. It will also be beneficial if you indicate in your talk some instances where JIT would be less suitable in the college food services situation. What will you say?

Backflush costing aims at reducing waste in the

In order for a manager to reduce throughput time, it is necessary for the accounting system to focus on calculating units produced per direct labor hour.

Just-in-time operating environments encourage continuous improvement of the work environment.

Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management for sewing seams on a garment?

Both traditional and backflush costing have an account for __________ Inventory.

For work done during August, Printing Press Company incurred direct materials costs of $151,000 and conversion costs of $250,000. The company employs a traditional operating philosophy. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,000 of costs, and the ending balance of the Finished Goods Inventory account was $3,000. There were no beginning inventory balances. How much was charged to the Cost of Goods Sold account during August?

In a just-in-time manufacturing environment, a flexible work cell is created by

A just-in-time philosophy seeks to minimize inventories.

Both activity-based management (ABM) and just-in-time (JIT) seek to eliminate or reduce nonvalue-adding activities and to improve the allocation of resources.

For work done during August, Printing Press Company incurred direct materials costs of $130,000 and conversion costs of $248,000. The company employs a just-in-time operating philosophy and backflush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,000 of costs, and the ending balance of the Finished Goods Inventory account was $3,000. There were no beginning inventory balances. What is the Cost of Goods Sold account's ending balance for August?