Question 1

Manufacturing resources planning (MRP II)has evolved into enterprise resource planning (ERP).

Accepted Answer

A) True 
 B)False

Question 2

The only objective of the Just-In-Time philosophy is to reduce inventory levels.

Accepted Answer

A) True 
 B)False

Question 3

In traditional firms,information reporting

Accepted Answer

A)  provides financially oriented information relating to operations 
B)  presents detailed information about activities 
C)  shows the allocation of costs first to activities and then to cost objects 
D)  identifies nonessential activities 
A)  provides financially oriented information relating to operations 
B)  presents detailed information about activities 
C)  shows the allocation of costs first to activities and then to cost objects 
D)  identifies nonessential activities

Question 4

List one authorization control in the traditional manufacturing environment.

Accepted Answer

work orders prepared by produc

Question 5

Explain the conversion cycle.

Accepted Answer

A company's conversion cycle t

Question 6

When one of the following statements is true?

Accepted Answer

A)  ERP evolved directly from MRP. 
B)  ERP evolved into MRP and MRP evolved into MRP II 
C)  MRP II evolved from MRP and MRP II evolved into ERP 
D)  None of the above is true. 
A)  ERP evolved directly from MRP. 
B)  ERP evolved into MRP and MRP evolved into MRP II 
C)  MRP II evolved from MRP and MRP II evolved into ERP 
D)  None of the above is true.

Question 7

An excess materials requisition is a control that signals that a greater than standard quantity of materials is being ordered from the vendor.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an assumption of the Economic Order Quantity model?

Accepted Answer

A)  demand for the product is known with certainty 
B)  total cost per year of placing orders is fixed 
C)  lead time is known and is constant 
D)  there are no quantity discounts 
A)  demand for the product is known with certainty 
B)  total cost per year of placing orders is fixed 
C)  lead time is known and is constant 
D)  there are no quantity discounts

Question 9

Which statement is not correct?

Accepted Answer

A)  Inventories provide a competitive advantage. 
B)  Inventories can invite overproduction. 
C)  Inventories are expensive to maintain. 
D)  Inventories may conceal problems. 
A)  Inventories provide a competitive advantage. 
B)  Inventories can invite overproduction. 
C)  Inventories are expensive to maintain. 
D)  Inventories may conceal problems.

Question 10

Name five documents associated with batch production systems.

Accepted Answer

Sales forecast,production sche

Question 11

A move ticket

Accepted Answer

A)  is the formal plan and authority to begin production 
B)  specifies the materials and production required for each batch 
C)  records the work done in each work center 
D)  authorizes the storekeeper to release materials to work centers 
A)  is the formal plan and authority to begin production 
B)  specifies the materials and production required for each batch 
C)  records the work done in each work center 
D)  authorizes the storekeeper to release materials to work centers

Question 12

Cement and petrochemicals are produced by the batch manufacturing method.

Accepted Answer

A) True 
 B)False

Question 13

Cost accounting initiates a WIP account upon receiving the first move ticket of a batch.

Accepted Answer

A) True 
 B)False

Question 14

Contrast the treatment of inventories in the traditional manufacturing environment and the lean manufacturing environment.

Accepted Answer

In the traditional manufacturing environ

Question 15

How does MRP II (manufacturing resource planning)expand on MRP (materials requirements planning)?

Accepted Answer

MRP is an older system that focused only

Question 16

All of the following are documents in batch process production systems except

Accepted Answer

A)  production schedule 
B)  route sheet 
C)  materials requisition 
D)  bill of manufacturing 
A)  production schedule 
B)  route sheet 
C)  materials requisition 
D)  bill of manufacturing

Question 17

Itemize the disadvantages of ABC that have caused some firms to abandon this technique.

Accepted Answer

•ABC has been criticized for being too t

Question 18

The internal control significance of the excess materials requisition is that it

Accepted Answer

A)  indicates the amount of material released to work centers 
B)  identifies materials used in production that exceed the standard amount allowed 
C)  indicates the standard quantities required for production 
D)  documents the return to raw materials inventory of unused production materials 
A)  indicates the amount of material released to work centers 
B)  identifies materials used in production that exceed the standard amount allowed 
C)  indicates the standard quantities required for production 
D)  documents the return to raw materials inventory of unused production materials

Question 19

Which of the following statements about the EOQ inventory model assumptions is incorrect?

Accepted Answer

A)  Demand for the product is constant and known with certainty. 
B)  The lead time is a variable. 
C)  All inventories in the order arrive at the same time. 
D)  Total ordering cost is a variable 
A)  Demand for the product is constant and known with certainty. 
B)  The lead time is a variable. 
C)  All inventories in the order arrive at the same time. 
D)  Total ordering cost is a variable

Question 20

Which statement is not correct?

Accepted Answer

A)  general ledger creates a new cost record upon receipt of a work order from production planning and control 
B)  cost accounting updates the cost record with data gathered from the materials requisition 
C)  general ledger posts summary information about the manufacturing process based on a journal voucher prepared by cost accounting 
D)  cost accounting computes variances and applies overhead to individual cost records 
A)  general ledger creates a new cost record upon receipt of a work order from production planning and control 
B)  cost accounting updates the cost record with data gathered from the materials requisition 
C)  general ledger posts summary information about the manufacturing process based on a journal voucher prepared by cost accounting 
D)  cost accounting computes variances and applies overhead to individual cost records

Manufacturing resources planning (MRP II)has evolved into enterprise resource planning (ERP).

The only objective of the Just-In-Time philosophy is to reduce inventory levels.

In traditional firms,information reporting

List one authorization control in the traditional manufacturing environment.

Explain the conversion cycle.

When one of the following statements is true?

An excess materials requisition is a control that signals that a greater than standard quantity of materials is being ordered from the vendor.

Which of the following is not an assumption of the Economic Order Quantity model?

Which statement is not correct?

Name five documents associated with batch production systems.

A move ticket

Cement and petrochemicals are produced by the batch manufacturing method.

Cost accounting initiates a WIP account upon receiving the first move ticket of a batch.

Contrast the treatment of inventories in the traditional manufacturing environment and the lean manufacturing environment.

How does MRP II (manufacturing resource planning)expand on MRP (materials requirements planning)?

All of the following are documents in batch process production systems except

Itemize the disadvantages of ABC that have caused some firms to abandon this technique.

The internal control significance of the excess materials requisition is that it

Which of the following statements about the EOQ inventory model assumptions is incorrect?

Which statement is not correct?

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

Manufacturing resources planning (MRP II)has evolved into enterprise resource planning (ERP).

The only objective of the Just-In-Time philosophy is to reduce inventory levels.

In traditional firms,information reporting

List one authorization control in the traditional manufacturing environment.

Explain the conversion cycle.

When one of the following statements is true?

An excess materials requisition is a control that signals that a greater than standard quantity of materials is being ordered from the vendor.

Which of the following is not an assumption of the Economic Order Quantity model?

Which statement is not correct?

Name five documents associated with batch production systems.

A move ticket

Cement and petrochemicals are produced by the batch manufacturing method.

Cost accounting initiates a WIP account upon receiving the first move ticket of a batch.

Contrast the treatment of inventories in the traditional manufacturing environment and the lean manufacturing environment.

How does MRP II (manufacturing resource planning)expand on MRP (materials requirements planning)?

All of the following are documents in batch process production systems except

Itemize the disadvantages of ABC that have caused some firms to abandon this technique.

The internal control significance of the excess materials requisition is that it

Which of the following statements about the EOQ inventory model assumptions is incorrect?

Which statement is not correct?

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