Question 1

Kaizen costing is used for which of the following types of products?

$\begin{array}{ll}
\underline{\text { New products}} & \underline{\text{Existing prociucts} }
\end{array}$

Accepted Answer

A) yes yes 
B) no yes 
C) no no 
D) yes no 
A) yes yes 
B) no yes 
C) no no 
D) yes no B

Question 2

With JIT manufacturing,which of the following costs would be considered an indirect product cost?

Accepted Answer

A) cost of specific-purpose equipment 
B) cost of equipment maintenance 
C) property taxes on the plant 
D) salary of a manufacturing cell worker 
A) cost of specific-purpose equipment 
B) cost of equipment maintenance 
C) property taxes on the plant 
D) salary of a manufacturing cell worker C

Question 3

Purchases of inventory create a continuous cash outflow each period.

Accepted Answer

A) True 
 B)False  True

Question 4

A kanban plays an important role in

Accepted Answer

A) JIT. 
B) EOQ. 
C) ABC. 
D) CPM. 
A) JIT. 
B) EOQ. 
C) ABC. 
D) CPM.

Question 5

Which of the following costing methods is the most effective in controlling a product's total life-cycle cost?

Accepted Answer

A) kaizen costing 
B) target costing 
C) standard costing 
D) process costing 
A) kaizen costing 
B) target costing 
C) standard costing 
D) process costing

Question 6

The JIT philosophy indicates that inventory,as well as which of the following,should be eliminated?

$\begin{array}{ll}
&&&&\text { Busuness-V alue- }\
& \underline{\text {Suppliers} }& \underline{\text { Storage}} &\underline{\text { Employees } } &\underline{\text { Added Activities } }
\end{array}$

Accepted Answer

A) yes yes yes yes 
B) yes yes no no 
C) no no yes no 
D) no yes no yes 
A) yes yes yes yes 
B) yes yes no no 
C) no no yes no 
D) no yes no yes

Question 7

Virtual reality has been used increasingly in the product design stage.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following attributes is a characteristic of the Internet business model?

Accepted Answer

A) many physical assets 
B) complex interrelationships among members of management 
C) a direct pipeline to customers 
D) one-to-one relationships between a company and its principal vendors. 
A) many physical assets 
B) complex interrelationships among members of management 
C) a direct pipeline to customers 
D) one-to-one relationships between a company and its principal vendors.

Question 9

Refer to Phelps Corporation.What are Phelps Corp.'s total annual ordering costs for Material A?

Accepted Answer

A) $6,000 
B) $600 
C) $125 
D) $1,000 
A) $6,000 
B) $600 
C) $125 
D) $1,000

Question 10

When a firm adopts the just-in-time method of management,

Accepted Answer

A) employees are retrained on different equipment,but the plant layout generally remains unchanged. 
B) new machinery and equipment must be purchased from franchised JIT dealers. 
C) machinery and equipment are moved into small autonomous production lines called islands or cells. 
D) new,more efficient machinery and equipment are purchased and installed in the original plant layout. 
A) employees are retrained on different equipment,but the plant layout generally remains unchanged. 
B) new machinery and equipment must be purchased from franchised JIT dealers. 
C) machinery and equipment are moved into small autonomous production lines called islands or cells. 
D) new,more efficient machinery and equipment are purchased and installed in the original plant layout.

Question 11

Backflush costing requires fewer allocations than traditional accounting methods.

Accepted Answer

A) True 
 B)False

Question 12

A method of product costing that develops an allowable product cost by estimating what the market will pay for a product with specific characteristics is referred to as ______________________________.

Accepted Answer

The answer of A method of product costing that develops...

Question 13

The JIT environment has caused a reassessment of product costing techniques.Which of the following statements is true with respect to this reassessment?

Accepted Answer

A) Traditional cost allocations based on direct labor are being questioned and criticized. 
B) The federal government,through the SEC,is responsible for the reassessment. 
C) The reassessment is caused by the replacement of machine hours with labor hours. 
D) None of the above is true. 
A) Traditional cost allocations based on direct labor are being questioned and criticized. 
B) The federal government,through the SEC,is responsible for the reassessment. 
C) The reassessment is caused by the replacement of machine hours with labor hours. 
D) None of the above is true.

Question 14

Which of the following describes the effect on direct labor when management adopts the JIT philosophy?

Accepted Answer

A) Each direct labor person performs a single task,thereby allowing that person to reach his or her theoretical potential. 
B) Because each person runs a single machine in a JIT environment,there are more employees classified as direct labor. 
C) The environment becomes more labor-intensive. 
D) Machine operators are expected to run several different types of machines,help set up for production runs,and identify and repair machinery needing maintenance. 
A) Each direct labor person performs a single task,thereby allowing that person to reach his or her theoretical potential. 
B) Because each person runs a single machine in a JIT environment,there are more employees classified as direct labor. 
C) The environment becomes more labor-intensive. 
D) Machine operators are expected to run several different types of machines,help set up for production runs,and identify and repair machinery needing maintenance.

Question 15

Lean manufacturing and just-in-time (JIT)systems are both concerned with reduction of inventory levels.

Accepted Answer

A) True 
 B)False

Question 16

JIT seeks to

Accepted Answer

A) reduce production cost while increasing quality. 
B) radically redesign the production process for effectiveness. 
C) modify all non-value-added activities. 
D) all of the above. 
A) reduce production cost while increasing quality. 
B) radically redesign the production process for effectiveness. 
C) modify all non-value-added activities. 
D) all of the above.

Question 17

In a just-in-time (JIT)environment,design changes may be made at any time during the production process.

Accepted Answer

A) True 
 B)False

Question 18

In a just-in-time (JIT)environment,design changes must be made early in the production process.

Accepted Answer

A) True 
 B)False

Question 19

In accounting for JIT operations,the Raw Material Inventory account

Accepted Answer

A) is used to record price variances for raw materials purchased. 
B) can be expected to have a larger balance than with traditional manufacturing methods. 
C) is combined with the Work In Process Inventory account. 
D) is combined with the Finished Goods Inventory account. 
A) is used to record price variances for raw materials purchased. 
B) can be expected to have a larger balance than with traditional manufacturing methods. 
C) is combined with the Work In Process Inventory account. 
D) is combined with the Finished Goods Inventory account.

Question 20

____ is a "pull" system of production and inventory control.

Accepted Answer

A) EDI 
B) EOQ 
C) JIT 
D) ABC 
A) EDI 
B) EOQ 
C) JIT 
D) ABC

Kaizen costing is used for which of the following types of products?

With JIT manufacturing,which of the following costs would be considered an indirect product cost?

Purchases of inventory create a continuous cash outflow each period.

A kanban plays an important role in

Which of the following costing methods is the most effective in controlling a product's total life-cycle cost?

The JIT philosophy indicates that inventory,as well as which of the following,should be eliminated? Busuness-V alue-

Virtual reality has been used increasingly in the product design stage.

Which of the following attributes is a characteristic of the Internet business model?

Refer to Phelps Corporation.What are Phelps Corp.'s total annual ordering costs for Material A?

When a firm adopts the just-in-time method of management,

Backflush costing requires fewer allocations than traditional accounting methods.

A method of product costing that develops an allowable product cost by estimating what the market will pay for a product with specific characteristics is referred to as ______________________________.

The JIT environment has caused a reassessment of product costing techniques.Which of the following statements is true with respect to this reassessment?

Which of the following describes the effect on direct labor when management adopts the JIT philosophy?

Lean manufacturing and just-in-time (JIT)systems are both concerned with reduction of inventory levels.

JIT seeks to

In a just-in-time (JIT)environment,design changes may be made at any time during the production process.

In a just-in-time (JIT)environment,design changes must be made early in the production process.

In accounting for JIT operations,the Raw Material Inventory account

____ is a "pull" system of production and inventory control.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Emerging Management Practices

Filters

Exam 18: Inventory and Production Management

Kaizen costing is used for which of the following types of products?

With JIT manufacturing,which of the following costs would be considered an indirect product cost?

Purchases of inventory create a continuous cash outflow each period.

A kanban plays an important role in

Which of the following costing methods is the most effective in controlling a product's total life-cycle cost?

The JIT philosophy indicates that inventory,as well as which of the following,should be eliminated? Busuness-V alue-

Virtual reality has been used increasingly in the product design stage.

Which of the following attributes is a characteristic of the Internet business model?

Refer to Phelps Corporation.What are Phelps Corp.'s total annual ordering costs for Material A?

When a firm adopts the just-in-time method of management,

Backflush costing requires fewer allocations than traditional accounting methods.

A method of product costing that develops an allowable product cost by estimating what the market will pay for a product with specific characteristics is referred to as ______________________________.

The JIT environment has caused a reassessment of product costing techniques.Which of the following statements is true with respect to this reassessment?

Which of the following describes the effect on direct labor when management adopts the JIT philosophy?

Lean manufacturing and just-in-time (JIT)systems are both concerned with reduction of inventory levels.

JIT seeks to

In a just-in-time (JIT)environment,design changes may be made at any time during the production process.

In a just-in-time (JIT)environment,design changes must be made early in the production process.

In accounting for JIT operations,the Raw Material Inventory account

____ is a "pull" system of production and inventory control.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Emerging Management Practices

Filters