Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Accepted Answer

A) True 
 B)False

Question 3

Inventory reduction is a ____ principle.

Accepted Answer

A)  lean 
B)  traditional processing 
C)  economic 
D)  wait time 
A)  lean 
B)  traditional processing 
C)  economic 
D)  wait time

Question 4

The budgeted cell conversion cost rate includes which of the following?

Accepted Answer

A)  only factory overhead 
B)  only direct labor and direct materials 
C)  direct labor, direct materials, and factory overhead 
D)  only direct labor and factory overhead 
A)  only factory overhead 
B)  only direct labor and direct materials 
C)  direct labor, direct materials, and factory overhead 
D)  only direct labor and factory overhead

Question 5

In the lean principles philosophy, unexpected downtime is the result of unreliable processes.

Accepted Answer

A) True 
 B)False

Question 6

The Kwanika Co. operates in a lean manufacturing environment. During its first year of operations, Kwanika budgeted for 40,000 hours in the production of 100,000 units in its cell X-22. Material costs were $7 per unit. Cell X-22 conversion costs were budgeted for the year as follows:   
During January, material for 8,400 units was purchased on account.  There were 8,200 units manufactured and 8,000 were sold shipped to customers for $35 each. Journalize: 
(a) the material purchases
(b) the application of conversion costs
(c) the transfer from work in process to finished goods
(d) the sales (were made on account) and associated cost of goods sold for the month of January.

Accepted Answer

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

Question 7

Which of the following is not a prevention cost?

Accepted Answer

A)  preventive maintenance 
B)  operator training 
C)  design engineering 
D)  testing finished products 
A)  preventive maintenance 
B)  operator training 
C)  design engineering 
D)  testing finished products

Question 8

Reducing wait time is directly linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 9

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Accepted Answer

A) True 
 B)False

Question 10

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

Accepted Answer

A) True 
 B)False

Question 11

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. 
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 12

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 13

Within-batch wait time increases total lead time.

Accepted Answer

A) True 
 B)False

Question 14

Examples of transforming a traditional manufacturing environment to a lean environment is to do all of the following except

Accepted Answer

A)  form partnerships with reliable suppliers. 
B)  reorganize operational processes to organized product lines. 
C)  train employees to perform various operations. 
D)  increase raw materials to produce more, thereby increasing finished goods inventory. 
A)  form partnerships with reliable suppliers. 
B)  reorganize operational processes to organized product lines. 
C)  train employees to perform various operations. 
D)  increase raw materials to produce more, thereby increasing finished goods inventory.

Question 15

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Accepted Answer

A) True 
 B)False

Question 16

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 
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

Question 17

Sifton 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 coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units.
From the foregoing information, determine the budgeted cell conversion cost per unit.

Accepted Answer

A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,842.50 
A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,842.50

Question 18

The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated material cost is $18 per unit. Provide the following journal entries. 
(a) Materials are purchased to produce 4,000 units. 
(b) Conversion costs are applied to 3,800 units of production. (Please round to nearest cent.) 
(c) 3,650 units are placed into finished goods.

Accepted Answer

The answer of The Bright Lamp Company has budgeted its...

Question 19

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 
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 20

In a lean environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.

Accepted Answer

A) True 
 B)False

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

Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Inventory reduction is a ____ principle.

The budgeted cell conversion cost rate includes which of the following?

In the lean principles philosophy, unexpected downtime is the result of unreliable processes.

Which of the following is not a prevention cost?

Reducing wait time is directly linked to reducing inventory.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

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

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Within-batch wait time increases total lead time.

Examples of transforming a traditional manufacturing environment to a lean environment is to do all of the following except

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

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?

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 environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.

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

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

Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Inventory reduction is a ____ principle.

The budgeted cell conversion cost rate includes which of the following?

In the lean principles philosophy, unexpected downtime is the result of unreliable processes.

Which of the following is not a prevention cost?

Reducing wait time is directly linked to reducing inventory.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

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

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Within-batch wait time increases total lead time.

Examples of transforming a traditional manufacturing environment to a lean environment is to do all of the following except

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

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?

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 environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.

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