Question 1

Under a traditional accounting system any build-up of inventory will increase profit as it will include deferred fixed overheads.

Accepted Answer

A) True 
 B)False

Question 2

Which of these is not a benefit of the just-in-time system?

Accepted Answer

A)  it reduces inventory obsolescence 
B)  it reduces raw material handling costs 
C)  it guarantees that inventory will always be available from the supplier 
D)  none of the above is not a benefit, i.e. all are benefits of the just-in-time system 
A)  it reduces inventory obsolescence 
B)  it reduces raw material handling costs 
C)  it guarantees that inventory will always be available from the supplier 
D)  none of the above is not a benefit, i.e. all are benefits of the just-in-time system

Question 3

The statement concerning the theory of constraints (TOC) that is not true is:

Accepted Answer

A)  It centres on identifying bottlenecks in the organisation 
B)  Constraints can be on the demand or supply side 
C)  The theory is only relevant to a small number of businesses 
D)  None of the statements is untrue, i.e. all are true statements 
A)  It centres on identifying bottlenecks in the organisation 
B)  Constraints can be on the demand or supply side 
C)  The theory is only relevant to a small number of businesses 
D)  None of the statements is untrue, i.e. all are true statements

Question 4

Advantages of just-in time inventory management are all of the following, except:

Accepted Answer

A)  It makes the firm more independent of external suppliers 
B)  It minimises inventory insurance costs 
C)  It decreases the space needed for inventory storage 
D)  It increases manufacturing flexibility 
A)  It makes the firm more independent of external suppliers 
B)  It minimises inventory insurance costs 
C)  It decreases the space needed for inventory storage 
D)  It increases manufacturing flexibility

Question 5

Lean accounting refocuses performance measurement systems to emphasise social controls such as training.

Accepted Answer

A) True 
 B)False

Question 6

The originator of the total quality management (TQM) approach was an American, W. Edwards Deming.

Accepted Answer

A) True 
 B)False

Question 7

In relation to the drum-buffer-rope concept that is used to maximise flow through an organisational bottleneck, the statement that is correct is:

Accepted Answer

A)  the 'buffer' is the activity of only maintaining a small amount of work in process 
B)  the 'rope' involves calculating the demand for materials according to specified lead times 
C)  the 'drum' relates to the activity associated with only inserting materials into the constraint when needed 
D)  All the statements are correct 
A)  the 'buffer' is the activity of only maintaining a small amount of work in process 
B)  the 'rope' involves calculating the demand for materials according to specified lead times 
C)  the 'drum' relates to the activity associated with only inserting materials into the constraint when needed 
D)  All the statements are correct

Question 8

The first stage in the lean accounting model is:

Accepted Answer

A)  Identify the relevant value-chain processes and activities 
B)  Identify and define value in organisational offerings 
C)  Learning and growth within the organisation to strive for continual perfection 
D)  Implement a pull system in sync with customer demand 
A)  Identify the relevant value-chain processes and activities 
B)  Identify and define value in organisational offerings 
C)  Learning and growth within the organisation to strive for continual perfection 
D)  Implement a pull system in sync with customer demand

Question 9

Which of the following terms is typically associated with just-in-time systems?

Accepted Answer

A)  Manufacturing cells 
B)  Non-value-added activities 
C)  Demand-push system 
D)  Linear regression 
A)  Manufacturing cells 
B)  Non-value-added activities 
C)  Demand-push system 
D)  Linear regression

Question 10

A just-in-time system reduces costs in all of these ways, except:

Accepted Answer

A)  reducing defect rates 
B)  reducing the range of products produced 
C)  maximising the use of space 
D)  enhancing manufacturing flexibility 
A)  reducing defect rates 
B)  reducing the range of products produced 
C)  maximising the use of space 
D)  enhancing manufacturing flexibility

Question 11

'Value' in lean accounting is defined through the eyes of the customer.

Accepted Answer

A) True 
 B)False

Question 12

A limitation of the theory of constraints and throughput costing is that:

Accepted Answer

A)  Labour and overhead costs may be built up to excessive levels 
B)  Any product mix changes would not generate immediate cash flow effects 
C)  Management's attention is too focused on long-term results 
D)  a and b are limitations 
A)  Labour and overhead costs may be built up to excessive levels 
B)  Any product mix changes would not generate immediate cash flow effects 
C)  Management's attention is too focused on long-term results 
D)  a and b are limitations

Question 13

The statement concerning total quality management (TQM) that is not true is:

Accepted Answer

A)  it promotes an organisation-wide philosophy 
B)  the units cost of the product or service generally increase slightly as quality is improved 
C)  TQM is an important part of lean accounting 
D)  none of the statements is untrue. i.e. all are true statements 
A)  it promotes an organisation-wide philosophy 
B)  the units cost of the product or service generally increase slightly as quality is improved 
C)  TQM is an important part of lean accounting 
D)  none of the statements is untrue. i.e. all are true statements

Question 14

Under a value chain approach to quality management, product inspections are an example of which category of quality costs?

Accepted Answer

A)  Internal activities 
B)  Prevention activities 
C)  Appraisal activities 
D)  External activities 
A)  Internal activities 
B)  Prevention activities 
C)  Appraisal activities 
D)  External activities

Question 15

The just-in-time inventory system is considered a:

Accepted Answer

A)  demand-push system 
B)  supply-push system 
C)  supply-pull system 
D)  demand-pull system 
A)  demand-push system 
B)  supply-push system 
C)  supply-pull system 
D)  demand-pull system

Question 16

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?

Accepted Answer

A)  Internal activities 
B)  Prevention activities 
C)  External activities 
D)  Appraisal activities 
A)  Internal activities 
B)  Prevention activities 
C)  External activities 
D)  Appraisal activities

Question 17

In throughput costing throughput is the rate at which the system generates cash through sales.

Accepted Answer

A) True 
 B)False

Question 18

The statement that is incorrect concerning total quality management is:

Accepted Answer

A)  there is an emphasis on process management 
B)  there is extensive employee participation and training 
C)  there is a strong customer focus 
D)  none of the statements is incorrect, i.e. all are correct statements 
A)  there is an emphasis on process management 
B)  there is extensive employee participation and training 
C)  there is a strong customer focus 
D)  none of the statements is incorrect, i.e. all are correct statements

Question 19

In throughput costing the throughput of a product refers to its:

Accepted Answer

A)  selling price minus its total fixed costs 
B)  selling price minus its totally variable costs 
C)  selling price minus its fixed and variable costs 
D)  variable costs 
A)  selling price minus its total fixed costs 
B)  selling price minus its totally variable costs 
C)  selling price minus its fixed and variable costs 
D)  variable costs

Question 20

Just-in-time manufacturing is dedicated to:

Accepted Answer

A)  having the right amount of materials at the time they are needed 
B)  having no materials on hand at any time 
C)  having excessive amounts of materials on hand at all times 
D)  having to order materials when the factory runs out 
A)  having the right amount of materials at the time they are needed 
B)  having no materials on hand at any time 
C)  having excessive amounts of materials on hand at all times 
D)  having to order materials when the factory runs out

Under a traditional accounting system any build-up of inventory will increase profit as it will include deferred fixed overheads.

Which of these is not a benefit of the just-in-time system?

The statement concerning the theory of constraints (TOC) that is not true is:

Advantages of just-in time inventory management are all of the following, except:

Lean accounting refocuses performance measurement systems to emphasise social controls such as training.

The originator of the total quality management (TQM) approach was an American, W. Edwards Deming.

In relation to the drum-buffer-rope concept that is used to maximise flow through an organisational bottleneck, the statement that is correct is:

The first stage in the lean accounting model is:

Which of the following terms is typically associated with just-in-time systems?

A just-in-time system reduces costs in all of these ways, except:

'Value' in lean accounting is defined through the eyes of the customer.

A limitation of the theory of constraints and throughput costing is that:

The statement concerning total quality management (TQM) that is not true is:

Under a value chain approach to quality management, product inspections are an example of which category of quality costs?

The just-in-time inventory system is considered a:

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?

In throughput costing throughput is the rate at which the system generates cash through sales.

The statement that is incorrect concerning total quality management is:

In throughput costing the throughput of a product refers to its:

Just-in-time manufacturing is dedicated to:

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 15: Strategic Management Control: a Lean Perspective

Under a traditional accounting system any build-up of inventory will increase profit as it will include deferred fixed overheads.

Which of these is not a benefit of the just-in-time system?

The statement concerning the theory of constraints (TOC) that is not true is:

Advantages of just-in time inventory management are all of the following, except:

Lean accounting refocuses performance measurement systems to emphasise social controls such as training.

The originator of the total quality management (TQM) approach was an American, W. Edwards Deming.

In relation to the drum-buffer-rope concept that is used to maximise flow through an organisational bottleneck, the statement that is correct is:

The first stage in the lean accounting model is:

Which of the following terms is typically associated with just-in-time systems?

A just-in-time system reduces costs in all of these ways, except:

'Value' in lean accounting is defined through the eyes of the customer.

A limitation of the theory of constraints and throughput costing is that:

The statement concerning total quality management (TQM) that is not true is:

Under a value chain approach to quality management, product inspections are an example of which category of quality costs?

The just-in-time inventory system is considered a:

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?

In throughput costing throughput is the rate at which the system generates cash through sales.

The statement that is incorrect concerning total quality management is:

In throughput costing the throughput of a product refers to its:

Just-in-time manufacturing is dedicated to:

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters