Question 1

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Accepted Answer

Companies employing the activity-based m

Question 2

Which of the following is an example of a nonvalue-adding activity?

Accepted Answer

A)  Product distribution activity 
B)  Customer service activity 
C)  Data processing activity 
D)  Product design activity 
A)  Product distribution activity 
B)  Customer service activity 
C)  Data processing activity 
D)  Product design activity

Question 3

Distinguish between push-through and pull-through production methods. How does pull-through production meet the requirements of a just-in-time operating environment?

Accepted Answer

Using traditional operating procedures a

Question 4

For a small coffee cafe, which of the following is a nonvalue-adding activity?

Accepted Answer

A)  Importing coffee beans 
B)  Purchasing ingredients 
C)  Cleaning up 
D)  Operating the drive-through window 
A)  Importing coffee beans 
B)  Purchasing ingredients 
C)  Cleaning up 
D)  Operating the drive-through window

Question 5

In a just-in-time setting, the time spent reworking defective units is called __________ time.

Accepted Answer

A)  storage 
B)  inspection 
C)  queue 
D)  throughput 
A)  storage 
B)  inspection 
C)  queue 
D)  throughput

Question 6

A just-in-time environment has smaller inventories than the traditional manufacturing environment. As a result,

Accepted Answer

A)  larger production lot sizes are the rule, in order to realize the cost-effectiveness of long production runs. 
B)  the amount of working capital required for inventory typically increases. 
C)  the just-in-time environment experiences a lower inventory turnover than the traditional environment. 
D)  the just-in-time environment typically experiences a higher inventory turnover than the traditional environment. 
A)  larger production lot sizes are the rule, in order to realize the cost-effectiveness of long production runs. 
B)  the amount of working capital required for inventory typically increases. 
C)  the just-in-time environment experiences a lower inventory turnover than the traditional environment. 
D)  the just-in-time environment typically experiences a higher inventory turnover than the traditional environment.

Question 7

The Yeva Company produces children's automobile car seats. The company recently changed from a traditional production environment to just-in-time work cells. The company's car seats are widely distributed in popular retail stores. Would you recommend the use of backflush costing or ABM/ABC for tracking product costs? Explain your choice of system.

Accepted Answer

Yeva produces a large quantity of simila

Question 8

Typically, there are seven levels in the cost hierarchy.

Accepted Answer

A) True 
 B)False

Question 9

A nonvalue-adding activity is defined as a(n)

Accepted Answer

A)  administrative or support activity that adds overhead cost to the product and increases its market value. 
B)  activity that adds cost to a product but does not increase its market value. 
C)  activity that adds no cost to the product but increases its market value. 
D)  wasteful but unavoidable production activity. 
A)  administrative or support activity that adds overhead cost to the product and increases its market value. 
B)  activity that adds cost to a product but does not increase its market value. 
C)  activity that adds no cost to the product but increases its market value. 
D)  wasteful but unavoidable production activity.

Question 10

In a just-in-time environment using backflush costing, the entry to record the use of materials for the month's production is debit __________ and credit __________.

Accepted Answer

A)  Work in Process Inventory; Materials Inventory 
B)  Cost of Goods Sold; Finished Goods Inventory 
C)  Conversion Costs; Accounts Payable 
D)  No entry 
A)  Work in Process Inventory; Materials Inventory 
B)  Cost of Goods Sold; Finished Goods Inventory 
C)  Conversion Costs; Accounts Payable 
D)  No entry

Question 11

Maintaining consistent high product quality

Accepted Answer

A)  is both required for and a by-product of the just-in-time environment. 
B)  is difficult to obtain in a just-in-time environment because of the severe time constraints imposed by the just-in-time environment. 
C)  requires quality control inspectors at each step of the production process. 
D)  is too expensive to obtain in a just-in-time environment. 
A)  is both required for and a by-product of the just-in-time environment. 
B)  is difficult to obtain in a just-in-time environment because of the severe time constraints imposed by the just-in-time environment. 
C)  requires quality control inspectors at each step of the production process. 
D)  is too expensive to obtain in a just-in-time environment.

Question 12

Cost traceability is decreased in a just-in-time operating environment.

Accepted Answer

A) True 
 B)False

Question 13

From the four selections below, identify which are necessary to develop the value chain of a product or service. 
1. Processes 
2. Departments
3. Nonvalue-adding activities
4. Value-adding activities

Accepted Answer

A)  1 and 3 
B)  2 and 4 
C)  1 and 4 
D)  1 and 2 
A)  1 and 3 
B)  2 and 4 
C)  1 and 4 
D)  1 and 2

Question 14

In a just-in-time environment, a manager is interested in trends in inventory turnover.

Accepted Answer

A) True 
 B)False

Question 15

Comparing the goals of activity-based management (ABM) and lean operations, we can say that __________ aim(s) to simplify activities.

Accepted Answer

A)  JIT 
B)  ABM 
C)  both ABM and JIT 
D)  neither ABM nor JIT 
A)  JIT 
B)  ABM 
C)  both ABM and JIT 
D)  neither ABM nor JIT

Question 16

Activity-based costing is useful for profit planning.

Accepted Answer

A) True 
 B)False

Question 17

Engineering design is an activity vital to the success of any motor vehicle manufacturer. Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of unique luxury automobiles.

Accepted Answer

A)  Unit-level activity 
B)  Batch-level activity 
C)  Product-level activity 
D)  Facility-level activity 
A)  Unit-level activity 
B)  Batch-level activity 
C)  Product-level activity 
D)  Facility-level activity

Question 18

The value chain is the sequence of business activities in which usefulness is added to the products or the services within an organization.

Accepted Answer

A) True 
 B)False

Question 19

How can activity-based systems help managers in a global marketplace?

Accepted Answer

Activity-based systems are information s

Question 20

Define activity-based costing. Explain why this approach to cost assignments is superior to the traditional method of using a plantwide overhead cost rate. Will activity-based costing always result in lower product costs? Defend your answer.

Accepted Answer

Activity-based costing is an approach to

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Which of the following is an example of a nonvalue-adding activity?

Distinguish between push-through and pull-through production methods. How does pull-through production meet the requirements of a just-in-time operating environment?

For a small coffee cafe, which of the following is a nonvalue-adding activity?

In a just-in-time setting, the time spent reworking defective units is called __________ time.

A just-in-time environment has smaller inventories than the traditional manufacturing environment. As a result,

Typically, there are seven levels in the cost hierarchy.

A nonvalue-adding activity is defined as a(n)

In a just-in-time environment using backflush costing, the entry to record the use of materials for the month's production is debit and credit .

Maintaining consistent high product quality

Cost traceability is decreased in a just-in-time operating environment.

From the four selections below, identify which are necessary to develop the value chain of a product or service. 1. Processes 2. Departments 3. Nonvalue-adding activities 4. Value-adding activities

In a just-in-time environment, a manager is interested in trends in inventory turnover.

Comparing the goals of activity-based management (ABM) and lean operations, we can say that __________ aim(s) to simplify activities.

Activity-based costing is useful for profit planning.

Engineering design is an activity vital to the success of any motor vehicle manufacturer. Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of unique luxury automobiles.

The value chain is the sequence of business activities in which usefulness is added to the products or the services within an organization.

How can activity-based systems help managers in a global marketplace?

Define activity-based costing. Explain why this approach to cost assignments is superior to the traditional method of using a plantwide overhead cost rate. Will activity-based costing always result in lower product costs? Defend your answer.

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

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Which of the following is an example of a nonvalue-adding activity?

Distinguish between push-through and pull-through production methods. How does pull-through production meet the requirements of a just-in-time operating environment?

For a small coffee cafe, which of the following is a nonvalue-adding activity?

In a just-in-time setting, the time spent reworking defective units is called __________ time.

A just-in-time environment has smaller inventories than the traditional manufacturing environment. As a result,

Typically, there are seven levels in the cost hierarchy.

A nonvalue-adding activity is defined as a(n)

In a just-in-time environment using backflush costing, the entry to record the use of materials for the month's production is debit __________ and credit __________.

Maintaining consistent high product quality

Cost traceability is decreased in a just-in-time operating environment.

From the four selections below, identify which are necessary to develop the value chain of a product or service. 1. Processes 2. Departments 3. Nonvalue-adding activities 4. Value-adding activities

In a just-in-time environment, a manager is interested in trends in inventory turnover.

Comparing the goals of activity-based management (ABM) and lean operations, we can say that __________ aim(s) to simplify activities.

Activity-based costing is useful for profit planning.

Engineering design is an activity vital to the success of any motor vehicle manufacturer. Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of unique luxury automobiles.

The value chain is the sequence of business activities in which usefulness is added to the products or the services within an organization.

How can activity-based systems help managers in a global marketplace?

Define activity-based costing. Explain why this approach to cost assignments is superior to the traditional method of using a plantwide overhead cost rate. Will activity-based costing always result in lower product costs? Defend your answer.

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

In a just-in-time environment using backflush costing, the entry to record the use of materials for the month's production is debit and credit .