Question 1

Total quality management centers on new product and service development as opposed to managing the value chain for existing products.

Accepted Answer

A) True 
 B)False

Question 2

Examples of value-added activities include all of the following except:

Accepted Answer

A) Product design. 
B) Assembly activities. 
C) Machinery set-up activities. 
D) Establishing efficient distribution channels. 
A) Product design. 
B) Assembly activities. 
C) Machinery set-up activities. 
D) Establishing efficient distribution channels.

Question 3

[The following information applies to the questions displayed below.]
The Abrams Corporation incurred the following quality costs for the year ending December 31,2018:
  
-What are the total prevention costs for the Abrams Corporation?

Accepted Answer

A) $38,300 
B) $34,500 
C) $19,700 
D) $35,250 
A) $38,300 
B) $34,500 
C) $19,700 
D) $35,250

Question 4

Value-added activities include:

Accepted Answer

A) Setting up machinery. 
B) Storing direct materials. 
C) Employee idle time. 
D) Product design. 
A) Setting up machinery. 
B) Storing direct materials. 
C) Employee idle time. 
D) Product design.

Question 5

Cycle time is the length of time required for a product to pass completely through a manufacturing process.

Accepted Answer

A) True 
 B)False

Question 6

In a just-in-time manufacturing system,reliable vendor relationships are essential only if the prices they charge are the lowest possible prices.

Accepted Answer

A) True 
 B)False

Question 7

The value chain includes customer service,marketing,and suppliers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following activities performed by a manufacturer of roller blades is a value-added activity?

Accepted Answer

A) Designs that meet engineering specifications,but not customer needs 
B) Poor quality supplier deliveries 
C) Delayed distribution to a customer 
D) Clear and truthful marketing 
A) Designs that meet engineering specifications,but not customer needs 
B) Poor quality supplier deliveries 
C) Delayed distribution to a customer 
D) Clear and truthful marketing

Question 9

[The following information applies to the questions displayed below.]
Summit Products,Inc.is interested in producing and selling an improved widget.Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price.The current cost to produce the widget is estimated to be $65.
-Summit has learned that a competitor plans to introduce a similar widget at a price of $80.In response,Summit may reduce its selling price to $80.If Summit requires a 25% return on sales,what is the target cost for the new widget?

Accepted Answer

A) $80.00 
B) $60.00 
C) $23.75 
D) $20.00 
A) $80.00 
B) $60.00 
C) $23.75 
D) $20.00

Question 10

Which of the following is a value-added activity by a manufacturer of chocolate candies?

Accepted Answer

A) The addition of chocolate syrup into the candy mix. 
B) Hiring production workers. 
C) Storing the candy bars until they are distributed to stores. 
D) Managing the cost of electricity by the production department. 
A) The addition of chocolate syrup into the candy mix. 
B) Hiring production workers. 
C) Storing the candy bars until they are distributed to stores. 
D) Managing the cost of electricity by the production department.

Question 11

Target costing is directed toward:

Accepted Answer

A) Increasing the activity costs associated with existing products. 
B) Identifying the amount by which the costs of existing products must be reduced to achieve a target profit margin. 
C) The creation and design of products that will provide adequate profits. 
D) The improvement of existing production processes by eliminating non-value adding activities. 
A) Increasing the activity costs associated with existing products. 
B) Identifying the amount by which the costs of existing products must be reduced to achieve a target profit margin. 
C) The creation and design of products that will provide adequate profits. 
D) The improvement of existing production processes by eliminating non-value adding activities.

Question 12

The suppliers and production component of the value chain would include all of the following costs except:

Accepted Answer

A) Direct production labor. 
B) Production set-up. 
C) Salaries for sales personnel. 
D) Receipt of direct materials from suppliers. 
A) Direct production labor. 
B) Production set-up. 
C) Salaries for sales personnel. 
D) Receipt of direct materials from suppliers.

Question 13

Just-in-time manufacturing
Candycane Co.is trying to determine how long it takes for one of its products to pass through the production process.The following information was assembled regarding how many days the product spends in various production activities:
   (a)Which of the above activities are value-added activities?
(b)What is Candycane's total cycle time?
(c)Determine Candycane's manufacturing efficiency ratio.

Accepted Answer

(a)Value-added activities include: Assem

Question 14

The target costing process begins with finding a low cost supplier to reduce the overall cost of production.

Accepted Answer

A) True 
 B)False

Question 15

The basic approach of just-in-time inventory systems is to try to eliminate inefficiency and to improve product quality.

Accepted Answer

A) True 
 B)False

Question 16

The process of using activity-based costing to help reduce and eliminate non-value-added activities is activity-based management.

Accepted Answer

A) True 
 B)False

Question 17

JIT manufacturing
Briefly explain the nature and goals of a JIT manufacturing system.

Accepted Answer

In a JIT system,materials are acquired a

Question 18

A just-in-time inventory system is dependent on reliability of equipment and production workers are often trained in how to make routine repairs.

Accepted Answer

A) True 
 B)False

Question 19

Components of the total cost of quality
Explain how it is possible to reduce the total cost of quality by increasing the amount spent on prevention and appraisal activities.

Accepted Answer

Investments in appraisal and prevention

Question 20

Non-value-added activities are those that add to a product's desirability.

Accepted Answer

A) True 
 B)False

Exam 19: Costing and the Value Chain

Total quality management centers on new product and service development as opposed to managing the value chain for existing products.

Examples of value-added activities include all of the following except:

[The following information applies to the questions displayed below.] The Abrams Corporation incurred the following quality costs for the year ending December 31,2018: -What are the total prevention costs for the Abrams Corporation?

Value-added activities include:

Cycle time is the length of time required for a product to pass completely through a manufacturing process.

In a just-in-time manufacturing system,reliable vendor relationships are essential only if the prices they charge are the lowest possible prices.

The value chain includes customer service,marketing,and suppliers.

Which of the following activities performed by a manufacturer of roller blades is a value-added activity?

Which of the following is a value-added activity by a manufacturer of chocolate candies?

Target costing is directed toward:

The suppliers and production component of the value chain would include all of the following costs except:

The target costing process begins with finding a low cost supplier to reduce the overall cost of production.

The basic approach of just-in-time inventory systems is to try to eliminate inefficiency and to improve product quality.

The process of using activity-based costing to help reduce and eliminate non-value-added activities is activity-based management.

JIT manufacturing Briefly explain the nature and goals of a JIT manufacturing system.

A just-in-time inventory system is dependent on reliability of equipment and production workers are often trained in how to make routine repairs.

Components of the total cost of quality Explain how it is possible to reduce the total cost of quality by increasing the amount spent on prevention and appraisal activities.

Non-value-added activities are those that add to a product's desirability.

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters