Question 1

The Theory of Constraints argues that the slowest resource in a production system should set the pace for the entire system.

Accepted Answer

A) True 
 B)False

Question 2

For a business that has implemented lean manufacturing processes, the adoption of lean accounting is primarily intended:

Accepted Answer

A)  To more accurately report the financial performance of the company. 
B)  To satisfy generally accepted accounting principles (GAAP). 
C)  To enhance internal controls. 
D)  To improve overhead allocations. 
A)  To more accurately report the financial performance of the company. 
B)  To satisfy generally accepted accounting principles (GAAP). 
C)  To enhance internal controls. 
D)  To improve overhead allocations.

Question 3

Under lean accounting, like traditional cost accounting, products are charged with all manufacturing costs including direct materials, direct labor, and some appropriate share of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 4

Two machines, A and B, are arranged sequentially on a balanced production line. Output from Machine A is stored in a kanban. This indicates that:

Accepted Answer

A)  Machine A is a bottleneck resource. 
B)  Machine B is able to produce fewer units at a time than Machine A. 
C)  Machine A is able to produce fewer units at a time than Machine B. 
D)  Production on Machine A is a non-value-added activity. 
A)  Machine A is a bottleneck resource. 
B)  Machine B is able to produce fewer units at a time than Machine A. 
C)  Machine A is able to produce fewer units at a time than Machine B. 
D)  Production on Machine A is a non-value-added activity.

Question 5

Under lean accounting, standards and variances are not used at any point in the costing or performance management cycle.

Accepted Answer

A) True 
 B)False

Question 6

Faced with a bottleneck resource, a company can achieve economies by making process improvements in any of the activities in its production process.

Accepted Answer

A) True 
 B)False

Question 7

Material handling is managed in a functional organization by accumulating buffer stocks, while process-oriented organizations attempt to minimize material handling by adopting just-in-time production.

Accepted Answer

A) True 
 B)False

Question 8

The basic goal of all process-based tools and techniques is:

Accepted Answer

A)  The identification and control of all unfavorable product cost variances. 
B)  The identification and management of bottleneck resources. 
C)  The elimination of waste. 
D)  The appropriate application of overhead costs. 
A)  The identification and control of all unfavorable product cost variances. 
B)  The identification and management of bottleneck resources. 
C)  The elimination of waste. 
D)  The appropriate application of overhead costs.

The Theory of Constraints argues that the slowest resource in a production system should set the pace for the entire system.

For a business that has implemented lean manufacturing processes, the adoption of lean accounting is primarily intended:

Under lean accounting, like traditional cost accounting, products are charged with all manufacturing costs including direct materials, direct labor, and some appropriate share of manufacturing overhead.

Two machines, A and B, are arranged sequentially on a balanced production line. Output from Machine A is stored in a kanban. This indicates that:

Under lean accounting, standards and variances are not used at any point in the costing or performance management cycle.

Faced with a bottleneck resource, a company can achieve economies by making process improvements in any of the activities in its production process.

Material handling is managed in a functional organization by accumulating buffer stocks, while process-oriented organizations attempt to minimize material handling by adopting just-in-time production.

The basic goal of all process-based tools and techniques is:

Business Planning and Analysis: An Integrative Framework for Management Accounting

Measuring and Evaluating Performance

Defining and Using Cost Estimates

Cost Pools, Capacity, and Activity- Based Costing

Understanding the Management Process

Planning in the Product Domain

Assessing and Improving Product Profitability

Evaluating and Improving Process Performance

Setting Performance Expectations at the Entity Level

Setting Performance Expectations in Large, Complex Organizations

Evaluating and Improving Entity Performance

Setting and Achieving Targets in the Customer Domain

Strategic Cost Management and the Value Chain Domain

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Exam 8: Setting Process Expectations

The Theory of Constraints argues that the slowest resource in a production system should set the pace for the entire system.

For a business that has implemented lean manufacturing processes, the adoption of lean accounting is primarily intended:

Under lean accounting, like traditional cost accounting, products are charged with all manufacturing costs including direct materials, direct labor, and some appropriate share of manufacturing overhead.

Two machines, A and B, are arranged sequentially on a balanced production line. Output from Machine A is stored in a kanban. This indicates that:

Under lean accounting, standards and variances are not used at any point in the costing or performance management cycle.

Faced with a bottleneck resource, a company can achieve economies by making process improvements in any of the activities in its production process.

Material handling is managed in a functional organization by accumulating buffer stocks, while process-oriented organizations attempt to minimize material handling by adopting just-in-time production.

The basic goal of all process-based tools and techniques is:

Business Planning and Analysis: An Integrative Framework for Management Accounting

Measuring and Evaluating Performance

Defining and Using Cost Estimates

Cost Pools, Capacity, and Activity- Based Costing

Understanding the Management Process

Planning in the Product Domain

Assessing and Improving Product Profitability

Evaluating and Improving Process Performance

Setting Performance Expectations at the Entity Level

Setting Performance Expectations in Large, Complex Organizations

Evaluating and Improving Entity Performance

Setting and Achieving Targets in the Customer Domain

Strategic Cost Management and the Value Chain Domain

Filters