Question 1

A process-oriented layout segments production facilities into functional departments.

Accepted Answer

A) True 
 B)False

Question 2

From the above schedule of activity costs,determine the prevention costs.

Accepted Answer

A)  $30,000 
B)  $74,000 
C)  $76,000 
D)  $104,000

Question 3

From the foregoing information,determine the manufacturing cost per unit.

Accepted Answer

A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,870.50

Question 4

Within-batch wait time increases total lead time.

Accepted Answer

A) True 
 B)False

Question 5

From the above schedule of activity costs,determine the internal failure costs.

Accepted Answer

A)  $37,000 
B)  $25,000 
C)  $8,000 
D)  $33,000

Question 6

In a lean environment,the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following are features of the lean manufacturing system?
​
(a)maintaining excess inventory to ensure that products will always be available
(b)cross training of employees
(c)giving employees additional authority and responsibility
(d)product-oriented layout
(e)increased set-up time

Accepted Answer

The answer of Which of the following are features of...

Question 8

Reducing wait time is directly linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following results in long lead time?

Accepted Answer

A)  long setup times 
B)  large batch sizes 
C)  large inventories 
D)  all of the above

Question 10

Setups are a significant time-consuming activity in traditional production environments.

Accepted Answer

A) True 
 B)False

Question 11

Peters Manufacturing Co.operates in a lean manufacturing environment.The company had scheduled production of 95,000 units during February in its Y12 cell.Actual February production totaled 88,200 units.Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000.
​
Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

Accepted Answer

The answer of Peters Manufacturing Co.operates in a lean manufacturing...

Question 12

Nonfinancial accounting information is used more often for long-term operating decisions than is financial information.

Accepted Answer

A) True 
 B)False

Question 13

Accounting for lean operations requires fewer transactions because

Accepted Answer

A)  large batches of inventory are combined in a smaller number of transactions. 
B)  costs are accumulated in one department and then transferred to the next department. 
C)  combined material and conversion costs are transferred to finished goods. 
D)  costs are transferred from department to department allowing for better controls in costs.

Question 14

Squirrel Co.operates in a lean manufacturing environment.For June production,Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account.The journal entry required to record this transaction is:

Accepted Answer

A)  Raw and In Process Inventory 36,000
Accounts Payable 36,000 
B)  Cost of Goods Manufactured 36,000
Accounts Payable 36,000 
C)  Finished Goods 36,000
Accounts Payable 36,000 
D)  Raw Materials Inventory 36,000
Accounts Payable 36,000

Question 15

In a lean system,indirect labor is traced directly to product cells.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is characteristic of a lean production layout?

Accepted Answer

A)  Decentralized maintenance and small production batches 
B)  Decemtralized maintenance and organization around processes 
C)  Organization around processes and small production batches 
D)  Large production batches and organization around processes.

Question 17

Extreme Wreaths,Inc.makes wreaths in batch sizes of 15 at a time.The cutting & assembly process takes 10 minutes per wreath,and the decorating process time is 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
​
In a effort to improve the lead time,the company has tried reducing the batch size to 10 units.The new process is as follows: cutting & assembly process - 8 minutes.The decorating process is still 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
​
(a)Compute the value-added,non-value-added,and the total lead time of the wreath process for both the old and the new manufacturing process.
(b)Compute the value-added ratio for both the old and new process.Round to the nearest decimal.

Accepted Answer

The answer of Extreme Wreaths,Inc.makes wreaths in batch sizes of...

Question 18

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Question 19

In a lean system,direct labor is included in conversion costs.

Accepted Answer

A) True 
 B)False

Question 20

A local college is aggressively working to reduce the time it takes students to enroll for each semester.Which of the following changes would not help achieve this goal?

Accepted Answer

A)  Counselors are specializing in common degree plans 
B)  One application is good at the community college and at the transferring university 
C)  A one stop area includes admissions,advising,registration and student ID's 
D)  Having more number of staff to help facilitate admission process

Exam 26: Lean Manufacturing and Activity Analysis

A process-oriented layout segments production facilities into functional departments.

From the above schedule of activity costs,determine the prevention costs.

From the foregoing information,determine the manufacturing cost per unit.

Within-batch wait time increases total lead time.

From the above schedule of activity costs,determine the internal failure costs.

In a lean environment,the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Which of the following are features of the lean manufacturing system? (a)maintaining excess inventory to ensure that products will always be available (b)cross training of employees (c)giving employees additional authority and responsibility (d)product-oriented layout (e)increased set-up time

Reducing wait time is directly linked to reducing inventory.

Which of the following results in long lead time?

Setups are a significant time-consuming activity in traditional production environments.

Nonfinancial accounting information is used more often for long-term operating decisions than is financial information.

Accounting for lean operations requires fewer transactions because

Squirrel Co.operates in a lean manufacturing environment.For June production,Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account.The journal entry required to record this transaction is:

In a lean system,indirect labor is traced directly to product cells.

Which of the following is characteristic of a lean production layout?

Employee involvement does not include performing any indirect manufacturing functions.

In a lean system,direct labor is included in conversion costs.

A local college is aggressively working to reduce the time it takes students to enroll for each semester.Which of the following changes would not help achieve this goal?

Exam 26: Lean Manufacturing and Activity Analysis

A process-oriented layout segments production facilities into functional departments.

From the above schedule of activity costs,determine the prevention costs.

From the foregoing information,determine the manufacturing cost per unit.

Within-batch wait time increases total lead time.

From the above schedule of activity costs,determine the internal failure costs.

In a lean environment,the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Which of the following are features of the lean manufacturing system? ​ (a)maintaining excess inventory to ensure that products will always be available (b)cross training of employees (c)giving employees additional authority and responsibility (d)product-oriented layout (e)increased set-up time

Reducing wait time is directly linked to reducing inventory.

Which of the following results in long lead time?

Setups are a significant time-consuming activity in traditional production environments.

Nonfinancial accounting information is used more often for long-term operating decisions than is financial information.

Accounting for lean operations requires fewer transactions because

Squirrel Co.operates in a lean manufacturing environment.For June production,Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account.The journal entry required to record this transaction is:

In a lean system,indirect labor is traced directly to product cells.

Which of the following is characteristic of a lean production layout?

Employee involvement does not include performing any indirect manufacturing functions.

In a lean system,direct labor is included in conversion costs.

A local college is aggressively working to reduce the time it takes students to enroll for each semester.Which of the following changes would not help achieve this goal?

Which of the following are features of the lean manufacturing system? (a)maintaining excess inventory to ensure that products will always be available (b)cross training of employees (c)giving employees additional authority and responsibility (d)product-oriented layout (e)increased set-up time