Question 1

Which of the following is best suited to providing timely and focused performance information?

Accepted Answer

A)  nonfinancial information 
B)  financial accounting information 
C)  cost accounting information 
D)  variance analysis 
A)  nonfinancial information 
B)  financial accounting information 
C)  cost accounting information 
D)  variance analysis

Question 2

In a lean environment, operations only respond to customer orders.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is considered non-value-added lead time?

Accepted Answer

A)  packing 
B)  moving from process to process 
C)  converting raw materials to finished product 
D)  all of the above 
A)  packing 
B)  moving from process to process 
C)  converting raw materials to finished product 
D)  all of the above

Question 4

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

Question 5

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Accepted Answer

A) True 
 B)False

Question 6

A setup is the time required to prepare an operation for a new production run.

Accepted Answer

A) True 
 B)False

Question 7

From the above schedule, compute the percentage of non-value-added activities.

Accepted Answer

Non-Value-

Question 8

____ manufacturing deals with several suppliers in hopes of finding the best price.

Accepted Answer

A)  Traditional 
B)  Lean 
C)  Economic 
D)  Productivity improvement 
A)  Traditional 
B)  Lean 
C)  Economic 
D)  Productivity improvement

Question 9

Costs of failing to control quality include prevention costs and external failure costs.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Under a lean environment, employees have the responsibility and authority to

Accepted Answer

A)  purchase inventory. 
B)  determine output amounts. 
C)  make decisions about operations, rather than waiting for management. 
D)  make engineering changes. 
A)  purchase inventory. 
B)  determine output amounts. 
C)  make decisions about operations, rather than waiting for management. 
D)  make engineering changes.

Question 12

Large batch sizes increase lead time.

Accepted Answer

A) True 
 B)False

Question 13

What do lean manufacturers demand from their vendors?

Accepted Answer

A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above 
A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above

Question 14

Conan Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell. For the year, planned labor and overhead was $80,000,000; materials costs, $25 per unit. Planned production included 9,600 hours to produce 76,800 motor drives. Actual production for the month of August was 5,200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted cell conversion cost per hour.

Accepted Answer

A)  $8,025 
B)  $800 
C)  $7,200 
D)  $8,333 
A)  $8,025 
B)  $800 
C)  $7,200 
D)  $8,333

Question 15

Connally Company's payroll department required that every time card be checked twice to ensure pay accuracy. The company has 1,000 employees and has determined that the checks cost the company $8,000 per year. They have decided to change this policy and only check those names which appear on the exceptions report and a random check on the entire payroll. Currently only 15% of the payroll is evaluated each payroll. Determine the inspection activity cost per employee on the 1,000 employees both before and after the improvement.

Accepted Answer

Inspection activity before imp

Question 16

All lead times are considered to be value-added lead time.

Accepted Answer

A) True 
 B)False

Question 17

A nonfinancial measure is operating information that has not been translated into dollars.

Accepted Answer

A) True 
 B)False

Question 18

The lean philosophy attempts to reduce setup times, which will:

Accepted Answer

A)  increase batch sizes 
B)  not affect batch sizes 
C)  increase within-batch wait time 
D)  decrease within-batch wait time 
A)  increase batch sizes 
B)  not affect batch sizes 
C)  increase within-batch wait time 
D)  decrease within-batch wait time

Question 19

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Question 20

____ manufacturing philosophy emphasizes quality and zero defects.

Accepted Answer

A)  Traditional 
B)  Lean 
C)  Zero-Based 
D)  Chinese 
A)  Traditional 
B)  Lean 
C)  Zero-Based 
D)  Chinese

Which of the following is best suited to providing timely and focused performance information?

In a lean environment, operations only respond to customer orders.

Which of the following is considered non-value-added lead time?

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

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

A setup is the time required to prepare an operation for a new production run.

From the above schedule, compute the percentage of non-value-added activities.

____ manufacturing deals with several suppliers in hopes of finding the best price.

Costs of failing to control quality include prevention costs and external failure costs.

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

Under a lean environment, employees have the responsibility and authority to

Large batch sizes increase lead time.

What do lean manufacturers demand from their vendors?

All lead times are considered to be value-added lead time.

A nonfinancial measure is operating information that has not been translated into dollars.

The lean philosophy attempts to reduce setup times, which will:

Employee involvement does not include performing any indirect manufacturing functions.

____ manufacturing philosophy emphasizes quality and zero defects.

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

Which of the following is best suited to providing timely and focused performance information?

In a lean environment, operations only respond to customer orders.

Which of the following is considered non-value-added lead time?

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

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

A setup is the time required to prepare an operation for a new production run.

From the above schedule, compute the percentage of non-value-added activities.

____ manufacturing deals with several suppliers in hopes of finding the best price.

Costs of failing to control quality include prevention costs and external failure costs.

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

Under a lean environment, employees have the responsibility and authority to

Large batch sizes increase lead time.

What do lean manufacturers demand from their vendors?

All lead times are considered to be value-added lead time.

A nonfinancial measure is operating information that has not been translated into dollars.

The lean philosophy attempts to reduce setup times, which will:

Employee involvement does not include performing any indirect manufacturing functions.

____ manufacturing philosophy emphasizes quality and zero defects.

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