Question 1

Labour productivity measures the growth in value added _____ per unit of labour used.

Accepted Answer

A)  Input
B)  Output
C)  Cost
D)  Energy B

Question 2

TOC stands for _____________________.

Accepted Answer

A)  Theory of Competition
B)  Theory of Cost
C)  Theory of Constraints
D)  Theory of Complexity C

Question 3

____________ means change for the better.

Accepted Answer

A)  Kaizen
B)  Theory of Constraints
C)  Kanban
D)  C. JIT A

Question 4

A ______________ is the sequence of phases that a project goes through from its initiation to its closure.

Accepted Answer

A)  Product Management
B)  Project Management
C)  Project Sequencing
D)  ProjectLife Cycle

Question 5

________________ is an important part of lean thinking.

Accepted Answer

A)  Lean Management
B)  Cost Management
C)  Strategic Cost
D)  Cost Reduction

Question 6

Target costing is a ___________ costing methodology, in which the selling price and the required profit margin are used to determine the allowable cost for manufacturing a new/existing product.

Accepted Answer

A)  Modern
B)  Reverse
C)  Product
D)  Process

Question 7

Porter argues that the ability to perform particularactivities and to manage the linkages between these activities is a source of _______________ advantage.

Accepted Answer

A)  Cost
B)  Competitive
C)  Functional
D)  Profitability

Question 8

Regardless of how long it takes to produce and sell inventory, inventory is always considered to be a?

Accepted Answer

A)  Current asset
B)  Current liability
C)  Long-term asset
D)  Stockholder's equity

Question 9

Pareto Principle is ______ rule.

Accepted Answer

A)  80/20
B)  50/50
C)  60/40
D)  10/90

Question 10

A _______ is any factor that limits the organization from getting more of whatever it strives for.

Accepted Answer

A)  Constraint
B)  Cost
C)  Profit
D)  Revenue

Question 11

Which of the following characteristics is relevant to process costing but not to job order costing?

Accepted Answer

A)  Averaging process
B)  Identifiable batches of production
C)  Equivalent units
D)  Use of standard cost

Question 12

_________ is referred to as continuous improvement costing.

Accepted Answer

A)  Kaizen
B)  JIT
C)  Kanban
D)  Cost sensitivity

Question 13

_________ Costing Also known as delayed costing,

Accepted Answer

A)  Backflush
B)  Conventional
C)  Modern
D)  Competitive

Question 14

Which one of the following does not describe a type of transfer pricing?

Accepted Answer

A)  Target based
B)  Cost based
C)  Negotiated
D)  Administered

Question 15

During September, Khan had sales of 148,000, which made a gross profit of 40,000. Purchases amounted to 100,000 and opening inventory was 34,000. The value of closing inventory was?

Accepted Answer

A)  Rs. 24,000
B)  Rs. 26,000
C)  Rs. 42,000
D)  Rs. 54,000

Question 16

The latest cost of inventories is changed to production but the old prices are changed to inventories on hand?

Accepted Answer

A)  Average
B)  LIFO
C)  FIFO
D)  Perpetual

Question 17

Kaizen is a method aimed at ______ reduction below standard level, but without negative effects on quality, staff, safety, etc.

Accepted Answer

A)  Cost
B)  Waste
C)  Non - value activities
D)  Constraints

Question 18

What does FIFO mean?

Accepted Answer

A)  Finished stock In Finished stock out
B)  Fabrications Inward Fabrications Outward
C)  Final Input Final Output
D)  First In First Out

Question 19

Which of the following types of spoilage should not affect the recorded cost of inventories

Accepted Answer

A)  Normal spoilage
B)  Standard spoilage
C)  Abnormal spoilage
D)  Seasonal spoilage

Question 20

Systematic evaluation of the trade-offs between product functionality and product cost while still satisfying customer needs is the definition of

Accepted Answer

A)  Activity based management
B)  Theory of constraints
C)  Total quality management
D)  Value engineering

Exam 3: Inventory, Productivity, Principles, and Costing Methodologies