Question 1

Traditional manufacturing emphasizes all of the following except

Accepted Answer

A)  team oriented employee involvement 
B)  process-oriented layout 
C)  push manufacturing 
D)  cost accumulation by department 
A)  team oriented employee involvement 
B)  process-oriented layout 
C)  push manufacturing 
D)  cost accumulation by department A

Question 2

Reducing wait time is not linked to reducing inventory.

Accepted Answer

A) True 
 B)False  False

Question 3

Lean manufacturing favors organizing work around processes rather than around products.

Accepted Answer

A) True 
 B)False  False

Question 4

From the above schedule of activity costs, determine the non-value-added costs.

Accepted Answer

A)  $30,000 
B)  $50,000 
C)  $64,000 
D)  $85,000 
A)  $30,000 
B)  $50,000 
C)  $64,000 
D)  $85,000

Question 5

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

Question 6

Which of the following is characteristic of the traditional cost system?

Accepted Answer

A)  Many work in process account transactions. 
B)  Reliance on financial performance measures. 
C)  Many process control points. 
D)  All of the above. 
A)  Many work in process account transactions. 
B)  Reliance on financial performance measures. 
C)  Many process control points. 
D)  All of the above.

Question 7

Lean manufacturing is also called make-to-stock manufacturing.

Accepted Answer

A) True 
 B)False

Question 8

Christmas Express makes wreaths in batch sizes of 12. The cutting & assembly process takes 8 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 12 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. 
(b) Compute the value-added ratio.  Round to the nearest decimal.

Accepted Answer

(a) @#IMG-DLM& 
(b)

Question 9

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

A) True 
 B)False

Question 10

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than when using the traditional philosophy.

Accepted Answer

A) True 
 B)False

Question 11

A make-to-order company matches its production schedules to actual customer orders.

Accepted Answer

A) True 
 B)False

Question 12

Lean manufacturing is also called make-to-order manufacturing.

Accepted Answer

A) True 
 B)False

Question 13

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 14

In a lean environment, process problems are more visible than they are in a traditional environment because:

Accepted Answer

A)  inventories are maintained at higher levels. 
B)  process problems cause production to shut down immediately. 
C)  the push manufacturing system leads to increased inventory level. 
D)  the lack of work in process inventory creates problems. 
A)  inventories are maintained at higher levels. 
B)  process problems cause production to shut down immediately. 
C)  the push manufacturing system leads to increased inventory level. 
D)  the lack of work in process inventory creates problems.

Question 15

Which of the following results in fewer transactions in lean accounting?

Accepted Answer

A)  all manufacturing costs are combined in one account called Raw and In Process Inventory. 
B)  the distinction between direct and indirect costs is eliminated. 
C)  there is less movement of inventory between departments. 
D)  All of the above. 
A)  all manufacturing costs are combined in one account called Raw and In Process Inventory. 
B)  the distinction between direct and indirect costs is eliminated. 
C)  there is less movement of inventory between departments. 
D)  All of the above.

Question 16

Lean manufacturing favors organizing work around products rather than around processes.

Accepted Answer

A) True 
 B)False

Question 17

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow:   The journal entry to record May's conversion costs will include:

Accepted Answer

A)  a credit to Work in Process Inventory 
B)  a debit to Raw Materials Inventory 
C)  a credit to Raw and In Process Inventory 
D)  a debit to Raw and In Process Inventory 
A)  a credit to Work in Process Inventory 
B)  a debit to Raw Materials Inventory 
C)  a credit to Raw and In Process Inventory 
D)  a debit to Raw and In Process Inventory

Question 18

In a lean environment, process problems are more visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 19

Lead time is the process time between start and completion.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an external failure cost?

Accepted Answer

A)  warranty work 
B)  processing returned merchandise 
C)  rework 
D)  correcting invoice errors 
A)  warranty work 
B)  processing returned merchandise 
C)  rework 
D)  correcting invoice errors

Traditional manufacturing emphasizes all of the following except

Reducing wait time is not linked to reducing inventory.

Lean manufacturing favors organizing work around processes rather than around products.

From the above schedule of activity costs, determine the non-value-added costs.

Which of the following results in long lead time?

Which of the following is characteristic of the traditional cost system?

Lean manufacturing is also called make-to-stock manufacturing.

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than when using the traditional philosophy.

A make-to-order company matches its production schedules to actual customer orders.

Lean manufacturing is also called make-to-order manufacturing.

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

In a lean environment, process problems are more visible than they are in a traditional environment because:

Which of the following results in fewer transactions in lean accounting?

Lean manufacturing favors organizing work around products rather than around processes.

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow: The journal entry to record May's conversion costs will include:

In a lean environment, process problems are more visible than they are in a traditional environment.

Lead time is the process time between start and completion.

Which of the following is not an external failure cost?

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 12: Lean Manufacturing and Activity Analysis

Traditional manufacturing emphasizes all of the following except

Reducing wait time is not linked to reducing inventory.

Lean manufacturing favors organizing work around processes rather than around products.

From the above schedule of activity costs, determine the non-value-added costs.

Which of the following results in long lead time?

Which of the following is characteristic of the traditional cost system?

Lean manufacturing is also called make-to-stock manufacturing.

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than when using the traditional philosophy.

A make-to-order company matches its production schedules to actual customer orders.

Lean manufacturing is also called make-to-order manufacturing.

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

In a lean environment, process problems are more visible than they are in a traditional environment because:

Which of the following results in fewer transactions in lean accounting?

Lean manufacturing favors organizing work around products rather than around processes.

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow: The journal entry to record May's conversion costs will include:

In a lean environment, process problems are more visible than they are in a traditional environment.

Lead time is the process time between start and completion.

Which of the following is not an external failure cost?

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters