Question 1

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

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

Question 3

The objective of the Economic Order Quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

Accepted Answer

A) True 
 B)False

Question 4

Explain the relationship between MRP, MRPII and ERP.

Accepted Answer

Manufacturing resources planning (MRP II

Question 5

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 6

An example of automation of manufacturing planning is

Accepted Answer

A)  Computer Aided Engineering 
B)  Automated Storage and Retrieval Systems 
C)  Materials Requirements Planning 
D)  Computer Numerical Control 
A)  Computer Aided Engineering 
B)  Automated Storage and Retrieval Systems 
C)  Materials Requirements Planning 
D)  Computer Numerical Control

Question 7

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)  116 
A)  174 
B)  123 
C)  245 
D)  116

Question 8

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 9

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

Accepted Answer

MRP is an automated production planning

Question 10

What is meant by the term "islands of technology"?

Accepted Answer

Islands of technology describe

Question 11

Which of the following is not true?

Accepted Answer

A)  The complexities of ABC have caused many firms to pursue value stream accounting. 
B)  Value stream accounting captures costs related to value added activities within a specified department or activity. 
C)  An essential aspect in implementing value stream accounting is defining the product family. 
D)  Value stream accounting makes no distinction between direct costs and indirect costs. 
A)  The complexities of ABC have caused many firms to pursue value stream accounting. 
B)  Value stream accounting captures costs related to value added activities within a specified department or activity. 
C)  An essential aspect in implementing value stream accounting is defining the product family. 
D)  Value stream accounting makes no distinction between direct costs and indirect costs.

Question 12

Explain the conversion cycle.

Accepted Answer

A company's conversion cycle t

Question 13

Discuss the principles underlying the lean manufacturing approach.

Accepted Answer

Pull Processing. Products are pulled fro

Question 14

Discuss the assumptions of the economic order quantity (EOQ) model and its objective.

Accepted Answer

1. Demand for the product is constant an

Question 15

A manufacturing process that is organized into group technology cells utilizing no human labor is called

Accepted Answer

A)  islands of technology 
B)  process simplification 
C)  computer integrated manufacturing 
D)  traditional manufacturing 
A)  islands of technology 
B)  process simplification 
C)  computer integrated manufacturing 
D)  traditional manufacturing

Question 16

Which of the following is not a problem associated with standard cost accounting?

Accepted Answer

A)  Standard costing motivates management to produce large batches of products and build inventory. 
B)  Applying standard costing leads to product cost distortions in a lean environment. 
C)  Standard cost data are associated with excessive time lags that reduce its usefulness. 
D)  The financial orientation of standard costing may promote bad decisions. 
E)  All of the above are problems with standard costing. 
A)  Standard costing motivates management to produce large batches of products and build inventory. 
B)  Applying standard costing leads to product cost distortions in a lean environment. 
C)  Standard cost data are associated with excessive time lags that reduce its usefulness. 
D)  The financial orientation of standard costing may promote bad decisions. 
E)  All of the above are problems with standard costing.

Question 17

The storekeeper releases raw materials based on the

Accepted Answer

A)  production schedule 
B)  materials requisition 
C)  work order 
D)  bill of materials 
A)  production schedule 
B)  materials requisition 
C)  work order 
D)  bill of materials

Question 18

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

Accepted Answer

1. ABC has been criticized for being too

Question 19

Which of the following is not true regarding ABC?

Accepted Answer

A)  ABC is too time-consuming and complicated for practical applications over a sustained period. 
B)  ABC identifies the most and least profitable products and customers. 
C)  ABC promotes the lean manufacturing philosophies of process simplification and waste elimination. 
D)  All of the statements are true. 
A)  ABC is too time-consuming and complicated for practical applications over a sustained period. 
B)  ABC identifies the most and least profitable products and customers. 
C)  ABC promotes the lean manufacturing philosophies of process simplification and waste elimination. 
D)  All of the statements are true.

Question 20

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

Accepted Answer

A) True 
 B)False

Firms are abandoning Activity Based Costing (ABC) because

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

The objective of the Economic Order Quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

Explain the relationship between MRP, MRPII and ERP.

When one of the following statements is true?

An example of automation of manufacturing planning is

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?

Which statement is not correct?

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

What is meant by the term "islands of technology"?

Which of the following is not true?

Explain the conversion cycle.

Discuss the principles underlying the lean manufacturing approach.

Discuss the assumptions of the economic order quantity (EOQ) model and its objective.

A manufacturing process that is organized into group technology cells utilizing no human labor is called

Which of the following is not a problem associated with standard cost accounting?

The storekeeper releases raw materials based on the

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

Which of the following is not true regarding ABC?

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

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

Exam 7: The Conversion Cycle

Firms are abandoning Activity Based Costing (ABC) because

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

The objective of the Economic Order Quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

Explain the relationship between MRP, MRPII and ERP.

When one of the following statements is true?

An example of automation of manufacturing planning is

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?

Which statement is not correct?

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

What is meant by the term "islands of technology"?

Which of the following is not true?

Explain the conversion cycle.

Discuss the principles underlying the lean manufacturing approach.

Discuss the assumptions of the economic order quantity (EOQ) model and its objective.

A manufacturing process that is organized into group technology cells utilizing no human labor is called

Which of the following is not a problem associated with standard cost accounting?

The storekeeper releases raw materials based on the

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

Which of the following is not true regarding ABC?

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

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