Exam 4: Value-Based Systems- Abm and Lean

A supply chain is a related sequence of value-creating activities within an organization.

A framework for classifying value-adding and nonvalue-adding activities according to the level at which their costs are incurred is called a

A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A product-level activity is

Which of the following statements about a just-in-time operating environment is true?

The three inventory accounts used in traditional costing are replaced by two inventory accounts in backflush costing.

Identify the following activities, for an automobile manufacturer, as either value-adding (V) or nonvalue-adding (NV). _____a. Moving products $\quad$$\quad$ _____e. Production _____b. Storing parts $\quad$$\quad$$\quad$$\quad$ _____f. Customer servic _____c. Research and $\quad$$\quad$$\quad$ _____g. Cost accounting $\quad\quad$ development _____d. Inventory control $\quad$$\quad$ _____h. Engine ering

In a just-in-time environment, managing the production process focuses on

Push-through method is used in traditional manufacturing operations.

Full product cost is relevant for companies providing services as well as those providing products.

In a just-in-time environment, more quality control inspectors are needed because of the high speed of production.

A just-in-time operation would attempt to eliminate inspection time.

How do managers measure an activity's performance?

Which of the following is not a concern when managing inventory in a just-in-time environment?

The use of computer monitoring allows product costs to be traced directly to work cells.

When managing inventory in a just-in-time environment, there is less need to control personnel.

Product unit costs computed using activity-based costing compared to product unit costs computed using a traditional costing approach will

Process value analysis (PVA) identifies all activities of a production and/or assembly operation for the purpose of

Lean's primary goal is to eliminate waste in business processes.

Why is process value analysis not part of the general ledger accounting system?

For work done during August, Printing Press Company incurred direct materials costs of $139,000 and conversion costs of $260,000. 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 $1,080 of costs, and the ending balance of the Finished Goods Inventory account was $1,220. There were no beginning inventory balances. What was the ending balance of the Cost of Goods Sold account for August?