Question 1

From the above schedule, calculate: 
(a) value-added   
(b) non-value-added costs.

Accepted Answer

The answer of   
From the above schedule, calculate:...

Question 2

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Accepted Answer

A) True 
 B)False

Question 3

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. 
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 4

From the above schedule, calculate the: 
(a) prevention 
(b) appraisal costs.

Accepted Answer

The answer of   
From the above schedule, calculate...

Question 5

From the above schedule of activity costs, determine the total activity cost.

Accepted Answer

A)  $62,000 
B)  $179,000 
C)  $94,000 
D)  $241,000 
A)  $62,000 
B)  $179,000 
C)  $94,000 
D)  $241,000

Question 6

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

Accepted Answer

A)  $39,000 
B)  $19,000 
C)  $12,000 
D)  $31,000 
A)  $39,000 
B)  $19,000 
C)  $12,000 
D)  $31,000

Question 7

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is (are) objective(s) of lean manufacturing?

Accepted Answer

A)  eliminating waste 
B)  increasing inventory levels 
C)  increased production speed 
D)  all of the above 
A)  eliminating waste 
B)  increasing inventory levels 
C)  increased production speed 
D)  all of the above

Question 9

A college would like to increase enrollment by streamlining the enrollment process. Which of the following would not fall in line with the college goal?

Accepted Answer

A)  Reduce the requirements necessary to enroll. 
B)  Relocate counselors, academic advisors, and financial aid specialists for a major to a central location. 
C)  Cross-train counselors, academic advisors, and financial aid specialists. 
D)  All of these choices would fall in line with the college goal. 
A)  Reduce the requirements necessary to enroll. 
B)  Relocate counselors, academic advisors, and financial aid specialists for a major to a central location. 
C)  Cross-train counselors, academic advisors, and financial aid specialists. 
D)  All of these choices would fall in line with the college goal.

Question 10

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 production costs transferred to Finished Goods during August.

Accepted Answer

A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600 
A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600

Question 11

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

Accepted Answer

A) True 
 B)False

Question 12

The lean philosophy views inventory as a necessary buffer to protect against process problems.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  $50,000 
B)  $23,000 
C)  $73,000 
D)  $104,000 
A)  $50,000 
B)  $23,000 
C)  $73,000 
D)  $104,000

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following drives work-in-process inventory levels higher?

Accepted Answer

A)  Machine breakdowns 
B)  Production rate losses 
C)  Rework processes 
D)  All of the above 
A)  Machine breakdowns 
B)  Production rate losses 
C)  Rework processes 
D)  All of the above

Question 17

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 18

In a lean system, there are more transactions to record than there are in a traditional system.

Accepted Answer

A) True 
 B)False

Question 19

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Accepted Answer

A) True 
 B)False

Question 20

Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs:   
All costs are driven by machine hours. Total possible hours for the year are 2,800. It takes .03 hours to machine one unit of Part X2. 
(a) Compute Department #1's budgeted cell conversion cost rate for the current year. 
Round to the nearest cent. 
(b) Compute Part X2's budgeted cell conversion cost per unit.  Round to the nearest cent.

Accepted Answer

The answer of Axelgold Company produces parts for the auto...

From the above schedule, calculate: (a) value-added (b) non-value-added costs.

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Accounting for lean operations requires fewer transactions because

From the above schedule, calculate the: (a) prevention (b) appraisal costs.

From the above schedule of activity costs, determine the total activity cost.

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

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Which of the following is (are) objective(s) of lean manufacturing?

A college would like to increase enrollment by streamlining the enrollment process. Which of the following would not fall in line with the college goal?

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

The lean philosophy views inventory as a necessary buffer to protect against process problems.

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

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

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

Which of the following drives work-in-process inventory levels higher?

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

In a lean system, there are more transactions to record than there are in a traditional system.

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

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

From the above schedule, calculate: (a) value-added (b) non-value-added costs.

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Accounting for lean operations requires fewer transactions because

From the above schedule, calculate the: (a) prevention (b) appraisal costs.

From the above schedule of activity costs, determine the total activity cost.

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

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Which of the following is (are) objective(s) of lean manufacturing?

A college would like to increase enrollment by streamlining the enrollment process. Which of the following would not fall in line with the college goal?

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

The lean philosophy views inventory as a necessary buffer to protect against process problems.

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

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

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

Which of the following drives work-in-process inventory levels higher?

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

In a lean system, there are more transactions to record than there are in a traditional system.

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

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