Question 1

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 2

A purchase requisition authorizes the storekeeper to release materials to individuals or work centers in the production process.

Accepted Answer

A) True 
 B)False

Question 3

Discuss inventory control objectives.

Accepted Answer

Inventory control minimizes total invent

Question 4

Inventory control performs all of the following tasks except it

Accepted Answer

A)  provides production planning and control with the inventory status report of finished goods 
B)  updates the raw material inventory records 
C)  prepares a materials requisition for each production batch 
D)  records the completed production as an increase to finished goods inventory 
A)  provides production planning and control with the inventory status report of finished goods 
B)  updates the raw material inventory records 
C)  prepares a materials requisition for each production batch 
D)  records the completed production as an increase to finished goods inventory

Question 5

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 6

Discuss the importance of the move ticket to the cost-accounting department.

Accepted Answer

The various work centers send cost accou

Question 7

Describe the primary goal of lean manufacturing?

Accepted Answer

The goal of lean manufacturing

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Automation is at the heart of the lean manufacturing philosophy. Discuss its stages and its distinguishing features.

Accepted Answer

Automation of the manufacturing process

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Batch processing creates a homogeneous product through a continuous series of standard procedures.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

The use of standard quantities provides

Question 13

List two disadvantages of using a traditional cost accounting system.

Accepted Answer

Cost allocations may be inaccu

Question 14

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 15

Which of the following would not be included as a value stream cost?

Accepted Answer

A)  Labor costs of employees who simply transport the product from cell to cell. 
B)  Labor costs of employees who design the product. 
C)  A charge per square foot for the value stream production facility including cost of rent and building maintenance. 
D)  All of the above are value stream costs 
A)  Labor costs of employees who simply transport the product from cell to cell. 
B)  Labor costs of employees who design the product. 
C)  A charge per square foot for the value stream production facility including cost of rent and building maintenance. 
D)  All of the above are value stream costs

Question 16

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 17

Traditional accounting assumes that products cause costs. ABC assumes that _________________ cause costs.

Accepted Answer

The answer of Traditional accounting assumes that products cause costs....

Question 18

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 19

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 20

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

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

A purchase requisition authorizes the storekeeper to release materials to individuals or work centers in the production process.

Discuss inventory control objectives.

Inventory control performs all of the following tasks except it

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

Discuss the importance of the move ticket to the cost-accounting department.

Describe the primary goal of lean manufacturing?

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

Automation is at the heart of the lean manufacturing philosophy. Discuss its stages and its distinguishing features.

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

Batch processing creates a homogeneous product through a continuous series of standard procedures.

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

List two disadvantages of using a traditional cost accounting system.

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

Which of the following would not be included as a value stream cost?

A move ticket

Traditional accounting assumes that products cause costs. ABC assumes that _________________ cause costs.

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

An example of automation of manufacturing design is

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

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

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

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Exam 7: The Conversion Cycle

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

A purchase requisition authorizes the storekeeper to release materials to individuals or work centers in the production process.

Discuss inventory control objectives.

Inventory control performs all of the following tasks except it

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

Discuss the importance of the move ticket to the cost-accounting department.

Describe the primary goal of lean manufacturing?

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

Automation is at the heart of the lean manufacturing philosophy. Discuss its stages and its distinguishing features.

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

Batch processing creates a homogeneous product through a continuous series of standard procedures.

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

List two disadvantages of using a traditional cost accounting system.

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

Which of the following would not be included as a value stream cost?

A move ticket

Traditional accounting assumes that products cause costs. ABC assumes that _________________ cause costs.

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

An example of automation of manufacturing design is

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

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

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