Question 1

A non-value-adding activity is one that adds cost to a product or service and also increases its market value.

Accepted Answer

A) True 
 B)False

Question 2

In activity-based costing, the first step in assigning costs is to

Accepted Answer

A)  analyze all nonvalue-adding activities to determine if they are necessary support areas. 
B)  accumulate costs for each activity. 
C)  identify and classify each activity. 
D)  separate nonvalue-adding activities from value-adding activities. 
A)  analyze all nonvalue-adding activities to determine if they are necessary support areas. 
B)  accumulate costs for each activity. 
C)  identify and classify each activity. 
D)  separate nonvalue-adding activities from value-adding activities.

Question 3

For a bank, a credit check of a loan applicant is an example of a batch-level activity.

Accepted Answer

A) True 
 B)False

Question 4

Nonvalue-adding activity costs do not increase a product's cost because they do not add value to the product.

Accepted Answer

A) True 
 B)False

Question 5

A change to just-in-time manufacturing expands mainly the role of the

Accepted Answer

A)  cost accountant. 
B)  machine operator. 
C)  purchasing manager. 
D)  quality control inspector. 
A)  cost accountant. 
B)  machine operator. 
C)  purchasing manager. 
D)  quality control inspector.

Question 6

Comparing activity-based management (ABM) and lean operations, all of the following are correct except

Accepted Answer

A)  both identify value-adding and nonvalue-adding activities. 
B)  ABM uses a more complex accounting system. 
C)  both are activity-based systems. 
D)  JIT focuses on the accuracy of cost assignment. 
A)  both identify value-adding and nonvalue-adding activities. 
B)  ABM uses a more complex accounting system. 
C)  both are activity-based systems. 
D)  JIT focuses on the accuracy of cost assignment.

Question 7

The actual amount of time that a product is being worked on is known as the

Accepted Answer

A)  moving time. 
B)  inspection time. 
C)  processing time. 
D)  queue time. 
A)  moving time. 
B)  inspection time. 
C)  processing time. 
D)  queue time.

Question 8

In just-in-time manufacturing, the basic cost classifications used in product costing are materials and conversion costs.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following activities would be part of the supply chain of a manufacturer?

Accepted Answer

A)  Shipping 
B)  Customer service 
C)  Parts manufacturing 
D)  Research and development 
A)  Shipping 
B)  Customer service 
C)  Parts manufacturing 
D)  Research and development

Question 10

Engineering design for mass-produced automobiles is classified as a(n) __________-level activity in an activity-based costing system.

Accepted Answer

A)  operations 
B)  batch 
C)  unit 
D)  product 
A)  operations 
B)  batch 
C)  unit 
D)  product

Question 11

For a manufacturer, materials storage is a value-adding activity.

Accepted Answer

A) True 
 B)False

Question 12

In moving toward the just-in-time continuous work flow concept, a key objective is the elimination of waste.

Accepted Answer

A) True 
 B)False

Question 13

The initial step in achieving the efficiency of a just-in-time system is to

Accepted Answer

A)  redesign the plant layout. 
B)  replace laborers with machines. 
C)  stop ordering materials for inventory. 
D)  identify products that are not profitable. 
A)  redesign the plant layout. 
B)  replace laborers with machines. 
C)  stop ordering materials for inventory. 
D)  identify products that are not profitable.

Question 14

In a just-in-time environment,

Accepted Answer

A)  production runs are interrupted each day at setup time to perform routine maintenance. 
B)  scheduled and preventive maintenance is extremely important. 
C)  cost savings are realized by performing maintenance whenever it is needed. 
D)  routine minor maintenance is always performed by the repair department. 
A)  production runs are interrupted each day at setup time to perform routine maintenance. 
B)  scheduled and preventive maintenance is extremely important. 
C)  cost savings are realized by performing maintenance whenever it is needed. 
D)  routine minor maintenance is always performed by the repair department.

Question 15

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

Accepted Answer

A)  testing products. 
B)  redesigning the process. 
C)  lighting the factory. 
D)  materials handling. 
A)  testing products. 
B)  redesigning the process. 
C)  lighting the factory. 
D)  materials handling.

Question 16

In the JIT environment, direct materials and conversion costs should be nearly uniform for each product in a work cell.

Accepted Answer

A) True 
 B)False

Question 17

Identify the following activities, performed on a manufactured product, as value-adding (V) or nonvalue-adding (NV).
 $\begin{array}{ll}
\_\_\_\text { a. Receiving}&\_\_\_\text { e. Painting product}\
\_\_\_\text {b. Storing raw materials }&\_\_\_\text {f. Packing and shripping }\
\_\_\_\text {c. Moving materials }&\_\_\_\text {g. Engine ering design of prochıct }\
\_\_\_\text {d. Working on product }&\_\_\_\text {h. Storing firished goods }\
\end{array}$

Accepted Answer

a. NV e. V

Question 18

The value chain is also called the supply network.

Accepted Answer

A) True 
 B)False

Question 19

The time a product spends waiting to be worked on is called storage time.

Accepted Answer

A) True 
 B)False

Question 20

A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.

Accepted Answer

A) True 
 B)False

A non-value-adding activity is one that adds cost to a product or service and also increases its market value.

In activity-based costing, the first step in assigning costs is to

For a bank, a credit check of a loan applicant is an example of a batch-level activity.

Nonvalue-adding activity costs do not increase a product's cost because they do not add value to the product.

A change to just-in-time manufacturing expands mainly the role of the

Comparing activity-based management (ABM) and lean operations, all of the following are correct except

The actual amount of time that a product is being worked on is known as the

In just-in-time manufacturing, the basic cost classifications used in product costing are materials and conversion costs.

Which of the following activities would be part of the supply chain of a manufacturer?

Engineering design for mass-produced automobiles is classified as a(n) __________-level activity in an activity-based costing system.

For a manufacturer, materials storage is a value-adding activity.

In moving toward the just-in-time continuous work flow concept, a key objective is the elimination of waste.

The initial step in achieving the efficiency of a just-in-time system is to

In a just-in-time environment,

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

In the JIT environment, direct materials and conversion costs should be nearly uniform for each product in a work cell.

The value chain is also called the supply network.

The time a product spends waiting to be worked on is called storage time.

A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.

The Changing Business Environment - a Managers Perspective

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, Incl Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

Filters

Exam 4: Value-Based Systems- Abm and Lean

A non-value-adding activity is one that adds cost to a product or service and also increases its market value.

In activity-based costing, the first step in assigning costs is to

For a bank, a credit check of a loan applicant is an example of a batch-level activity.

Nonvalue-adding activity costs do not increase a product's cost because they do not add value to the product.

A change to just-in-time manufacturing expands mainly the role of the

Comparing activity-based management (ABM) and lean operations, all of the following are correct except

The actual amount of time that a product is being worked on is known as the

In just-in-time manufacturing, the basic cost classifications used in product costing are materials and conversion costs.

Which of the following activities would be part of the supply chain of a manufacturer?

Engineering design for mass-produced automobiles is classified as a(n) __________-level activity in an activity-based costing system.

For a manufacturer, materials storage is a value-adding activity.

In moving toward the just-in-time continuous work flow concept, a key objective is the elimination of waste.

The initial step in achieving the efficiency of a just-in-time system is to

In a just-in-time environment,

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

In the JIT environment, direct materials and conversion costs should be nearly uniform for each product in a work cell.

The value chain is also called the supply network.

The time a product spends waiting to be worked on is called storage time.

A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.

The Changing Business Environment - a Managers Perspective

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, Incl Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

Filters