Question 1

Differentiate between essential and non-essential activities.

Accepted Answer

Essential activities add value to the organization either through adding value to the customer or to the organization.Non-essential activities do not add value.

Question 2

The bill of materials specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished product.

Accepted Answer

A) True 
 B)False  True

Question 3

Firms are abandoning Activity Based Costing (ABC)because

Accepted Answer

A)  it does not facilitates the analysis of variances 
B)  it is complex and time consuming 
C)  it does not recognize the importance of direct labor as a component of total manufacturing cost 
D)  the financial nature of the reports does not permit comparisons to be made among different types of products 
A)  it does not facilitates the analysis of variances 
B)  it is complex and time consuming 
C)  it does not recognize the importance of direct labor as a component of total manufacturing cost 
D)  the financial nature of the reports does not permit comparisons to be made among different types of products B

Question 4

A flexible manufacturing system

Accepted Answer

A)  creates bottlenecks in the process 
B)  leads to an "us" versus "them" attitude among workers 
C)  shortens the physical distance between activities 
D)  is organized along functional lines 
A)  creates bottlenecks in the process 
B)  leads to an "us" versus "them" attitude among workers 
C)  shortens the physical distance between activities 
D)  is organized along functional lines

Question 5

Which statement is not correct?

Accepted Answer

A)  cost objects are the reasons for performing activities 
B)  cost object describes the work performed in a firm 
C)  activities cause costs 
D)  cost objects create a demand for activities 
A)  cost objects are the reasons for performing activities 
B)  cost object describes the work performed in a firm 
C)  activities cause costs 
D)  cost objects create a demand for activities

Question 6

Explain the relationship between MRP,MRPII and ERP.

Accepted Answer

Manufacturing resources planning (MRP II

Question 7

Describe the primary goal of lean manufacturing?

Accepted Answer

The goal of lean manufacturing

Question 8

All of the following are internal control procedures that should be in place in the conversion cycle except

Accepted Answer

A)  calculation and analysis of direct material and direct labor variances 
B)  retention of excess materials by work centers 
C)  physical count of inventory items on hand 
D)  limited access to raw material and finished goods inventories 
A)  calculation and analysis of direct material and direct labor variances 
B)  retention of excess materials by work centers 
C)  physical count of inventory items on hand 
D)  limited access to raw material and finished goods inventories

Question 9

The philosophy of customer satisfaction permeates the world-class firm.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a principle of lean manufacturing?

Accepted Answer

A)  Products are pushed from the production end to the customer 
B)  All activities that do not add value and maximize the use of scarce resources must be eliminated 
C)  Achieve high inventory turnover rate. 
D)  A lean manufacturing firm must have established and cooperative relationships with vendors 
E)  All of the above are lean manufacturing principles. 
A)  Products are pushed from the production end to the customer 
B)  All activities that do not add value and maximize the use of scarce resources must be eliminated 
C)  Achieve high inventory turnover rate. 
D)  A lean manufacturing firm must have established and cooperative relationships with vendors 
E)  All of the above are lean manufacturing principles.

Question 11

An example of automation of manufacturing design is

Accepted Answer

A)  Computer Aided Engineering 
B)  Automated Storage and Retrieval Systems 
C)  Computer Numerical Control 
D)  robotics 
A)  Computer Aided Engineering 
B)  Automated Storage and Retrieval Systems 
C)  Computer Numerical Control 
D)  robotics

Question 12

Which process creates a homogeneous product through a continuous series of standard procedures?

Accepted Answer

A)  batch process 
B)  make-to-order process 
C)  continuous process 
D)  none of the above 
A)  batch process 
B)  make-to-order process 
C)  continuous process 
D)  none of the above

Question 13

Lean manufacturing evolved from the Toyota Production System (TPS),which is based on the just-in-time (JIT)production model.

Accepted Answer

A) True 
 B)False

Question 14

In a traditional manufacturing environment,cost accounting provides independent verification of what information? What are the benefits?

Accepted Answer

Cost accounting reconciles materials and

Question 15

The work-in-process file is the subsidiary ledger for the work-in-process control account.

Accepted Answer

A) True 
 B)False

Question 16

What is the economic order quantity if the annual demand is 10,000 units,set up cost of placing each order is $3 and the holding cost per unit per year is $2?

Accepted Answer

A)  174 
B)  123 
C)  245 
D)  none of the above 
A)  174 
B)  123 
C)  245 
D)  none of the above

Question 17

Move tickets authorize the storekeeper to release materials to work centers.

Accepted Answer

A) True 
 B)False

Question 18

How can a firm control against excessive quantities of raw materials being used in the manufacturing process.

Accepted Answer

The use of standard costs provides a typ

Question 19

A company's value stream includes all steps in a process,both essential and non-essential,for which the customer is willing to pay.

Accepted Answer

A) True 
 B)False

Question 20

Typically the only allocated cost in the value stream is a charge per square foot for the value stream production facility.

Accepted Answer

A) True 
 B)False

Differentiate between essential and non-essential activities.

The bill of materials specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished product.

Firms are abandoning Activity Based Costing (ABC)because

A flexible manufacturing system

Which statement is not correct?

Explain the relationship between MRP,MRPII and ERP.

Describe the primary goal of lean manufacturing?

All of the following are internal control procedures that should be in place in the conversion cycle except

The philosophy of customer satisfaction permeates the world-class firm.

Which of the following is not a principle of lean manufacturing?

An example of automation of manufacturing design is

Which process creates a homogeneous product through a continuous series of standard procedures?

Lean manufacturing evolved from the Toyota Production System (TPS),which is based on the just-in-time (JIT)production model.

In a traditional manufacturing environment,cost accounting provides independent verification of what information? What are the benefits?

The work-in-process file is the subsidiary ledger for the work-in-process control account.

What is the economic order quantity if the annual demand is 10,000 units,set up cost of placing each order is $3 and the holding cost per unit per year is $2?

Move tickets authorize the storekeeper to release materials to work centers.

How can a firm control against excessive quantities of raw materials being used in the manufacturing process.

A company's value stream includes all steps in a process,both essential and non-essential,for which the customer is willing to pay.

Typically the only allocated cost in the value stream is a charge per square foot for the value stream production facility.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

Exam 7: The Conversion Cycle

Differentiate between essential and non-essential activities.

The bill of materials specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished product.

Firms are abandoning Activity Based Costing (ABC)because

A flexible manufacturing system

Which statement is not correct?

Explain the relationship between MRP,MRPII and ERP.

Describe the primary goal of lean manufacturing?

All of the following are internal control procedures that should be in place in the conversion cycle except

The philosophy of customer satisfaction permeates the world-class firm.

Which of the following is not a principle of lean manufacturing?

An example of automation of manufacturing design is

Which process creates a homogeneous product through a continuous series of standard procedures?

Lean manufacturing evolved from the Toyota Production System (TPS),which is based on the just-in-time (JIT)production model.

In a traditional manufacturing environment,cost accounting provides independent verification of what information? What are the benefits?

The work-in-process file is the subsidiary ledger for the work-in-process control account.

What is the economic order quantity if the annual demand is 10,000 units,set up cost of placing each order is $3 and the holding cost per unit per year is $2?

Move tickets authorize the storekeeper to release materials to work centers.

How can a firm control against excessive quantities of raw materials being used in the manufacturing process.

A company's value stream includes all steps in a process,both essential and non-essential,for which the customer is willing to pay.

Typically the only allocated cost in the value stream is a charge per square foot for the value stream production facility.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters