Question 1

The cost of receiving inventory is regarded as

Accepted Answer

A) an ordering cost. 
B) a carrying cost. 
C) a purchasing cost. 
D) a cost of not carrying goods in stock. 
A) an ordering cost. 
B) a carrying cost. 
C) a purchasing cost. 
D) a cost of not carrying goods in stock.

Question 2

In a production process with a machine constraint,if a quality control point is to be established,it should be set up

Accepted Answer

A) within the machine's processes. 
B) directly after the machine has performed its functions. 
C) immediately before the machine. 
D) at the end of the production process. 
A) within the machine's processes. 
B) directly after the machine has performed its functions. 
C) immediately before the machine. 
D) at the end of the production process.

Question 3

The JIT philosophy does not focus on

Accepted Answer

A) standardizing parts used in products. 
B) eliminating waste in the production process. 
C) finding the absolute lowest price for purchased parts. 
D) improving quality of output. 
A) standardizing parts used in products. 
B) eliminating waste in the production process. 
C) finding the absolute lowest price for purchased parts. 
D) improving quality of output.

Question 4

A key element of Japan's success in world markets is

Accepted Answer

A) the elimination of waste in all operations. 
B) automation of the billing function. 
C) inefficient labor forces in competing countries. 
D) the verification procedures incorporated into computer programs. 
A) the elimination of waste in all operations. 
B) automation of the billing function. 
C) inefficient labor forces in competing countries. 
D) the verification procedures incorporated into computer programs.

Question 5

The cooperative strategic planning,controlling,and problem solving activities conducted by a company and its vendors and customers to generate efficient and effective transfers of goods and services is referred to as __________________________________________________.

Accepted Answer

supply cha

Question 6

McKenzie Corporation consumes 1,200,000 gallons of Material Y per year.Its order quantity is 30,000 gallons.It maintains a safety stock of 10,000 gallons and its annual carrying costs are $0.25 per gallon per year.If the ordering cost is $20 per order,what are the total annual ordering costs?

Accepted Answer

A) $600 
B) $800 
C) $8,300 
D) $1,200 
A) $600 
B) $800 
C) $8,300 
D) $1,200

Question 7

Target costing

Accepted Answer

A) can be applied to services if they are sufficiently uniform. 
B) can be applied to services only if they are automated. 
C) can be applied to services that are performed in a manufacturing environment. 
D) cannot be applied to services. 
A) can be applied to services if they are sufficiently uniform. 
B) can be applied to services only if they are automated. 
C) can be applied to services that are performed in a manufacturing environment. 
D) cannot be applied to services.

Question 8

In a just-in-time (JIT)environment,quality is determined at quality control checkpoints in the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 9

Kaizen costing is most often applied to new products.

Accepted Answer

A) True 
 B)False

Question 10

In a push system of production control,inventory is produced in anticipation of customer or work center demand.

Accepted Answer

A) True 
 B)False

Question 11

Target costing is most frequently used in the development stage of a product.

Accepted Answer

A) True 
 B)False

Question 12

A company annually consumes 10,000 units of Part C.The carrying cost of this part is $2 per year and the ordering costs are $100.The company uses an order quantity of 500 units.By how much could the company reduce its total costs if it purchased the economic order quantity instead of 500 units?

Accepted Answer

A) $500 
B) $2,000 
C) $2,500 
D) $0 
A) $500 
B) $2,000 
C) $2,500 
D) $0

Question 13

The peak level of unit sales will occur in which stage of the product life cycle?

Accepted Answer

A) growth 
B) maturity 
C) decline 
D) introduction 
A) growth 
B) maturity 
C) decline 
D) introduction

Question 14

Kaizen means

Accepted Answer

A) doing it the Japanese way. 
B) continuous improvement. 
C) employee empowerment. 
D) implementation of a centralized organizational structure. 
A) doing it the Japanese way. 
B) continuous improvement. 
C) employee empowerment. 
D) implementation of a centralized organizational structure.

Question 15

A ____ system of production control is paced by product demand.

Accepted Answer

A) EOQ 
B) ABC 
C) push 
D) pull 
A) EOQ 
B) ABC 
C) push 
D) pull

Question 16

Why might it be necessary to make adjustments to the accounting system in a firm that adopts JIT?

Accepted Answer

JIT production control systems foster au

Question 17

The EOQ formula can be modified to calculate the number of units that should be manufactured in a production run.

Accepted Answer

A) True 
 B)False

Question 18

Calhoun Corporation
Calhoun Corporation's order quantity for Material T is 5,000 lbs.The company maintains a safety stock of T at 500 lbs. ,and its order point is 1,500 lbs.
Refer to Calhoun Corporation.What is the lead time assuming daily usage is 50 lbs.?

Accepted Answer

A) 30 days 
B) 100 days 
C) 10 days 
D) 20 days 
A) 30 days 
B) 100 days 
C) 10 days 
D) 20 days

Question 19

Goods will flow through a production process at the rate of the

Accepted Answer

A) slowest part of the process. 
B) fastest part of the process. 
C) average of all the parts of the process. 
D) time standards set using externally calibrated benchmarks. 
A) slowest part of the process. 
B) fastest part of the process. 
C) average of all the parts of the process. 
D) time standards set using externally calibrated benchmarks.

Question 20

In a pull system of production control,inventory is produced in anticipation of customer or work center demand.

Accepted Answer

A) True 
 B)False

The cost of receiving inventory is regarded as

In a production process with a machine constraint,if a quality control point is to be established,it should be set up

The JIT philosophy does not focus on

A key element of Japan's success in world markets is

The cooperative strategic planning,controlling,and problem solving activities conducted by a company and its vendors and customers to generate efficient and effective transfers of goods and services is referred to as __________________________________________________.

McKenzie Corporation consumes 1,200,000 gallons of Material Y per year.Its order quantity is 30,000 gallons.It maintains a safety stock of 10,000 gallons and its annual carrying costs are $0.25 per gallon per year.If the ordering cost is $20 per order,what are the total annual ordering costs?

Target costing

In a just-in-time (JIT)environment,quality is determined at quality control checkpoints in the manufacturing process.

Kaizen costing is most often applied to new products.

In a push system of production control,inventory is produced in anticipation of customer or work center demand.

Target costing is most frequently used in the development stage of a product.

A company annually consumes 10,000 units of Part C.The carrying cost of this part is $2 per year and the ordering costs are $100.The company uses an order quantity of 500 units.By how much could the company reduce its total costs if it purchased the economic order quantity instead of 500 units?

The peak level of unit sales will occur in which stage of the product life cycle?

Kaizen means

A ____ system of production control is paced by product demand.

Why might it be necessary to make adjustments to the accounting system in a firm that adopts JIT?

The EOQ formula can be modified to calculate the number of units that should be manufactured in a production run.

Calhoun Corporation Calhoun Corporation's order quantity for Material T is 5,000 lbs.The company maintains a safety stock of T at 500 lbs. ,and its order point is 1,500 lbs. Refer to Calhoun Corporation.What is the lead time assuming daily usage is 50 lbs.?

Goods will flow through a production process at the rate of the

In a pull system of production control,inventory is produced in anticipation of customer or work center demand.

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

The cost of receiving inventory is regarded as

In a production process with a machine constraint,if a quality control point is to be established,it should be set up

The JIT philosophy does not focus on

A key element of Japan's success in world markets is

The cooperative strategic planning,controlling,and problem solving activities conducted by a company and its vendors and customers to generate efficient and effective transfers of goods and services is referred to as __________________________________________________.

McKenzie Corporation consumes 1,200,000 gallons of Material Y per year.Its order quantity is 30,000 gallons.It maintains a safety stock of 10,000 gallons and its annual carrying costs are $0.25 per gallon per year.If the ordering cost is $20 per order,what are the total annual ordering costs?

Target costing

In a just-in-time (JIT)environment,quality is determined at quality control checkpoints in the manufacturing process.

Kaizen costing is most often applied to new products.

In a push system of production control,inventory is produced in anticipation of customer or work center demand.

Target costing is most frequently used in the development stage of a product.

A company annually consumes 10,000 units of Part C.The carrying cost of this part is $2 per year and the ordering costs are $100.The company uses an order quantity of 500 units.By how much could the company reduce its total costs if it purchased the economic order quantity instead of 500 units?

The peak level of unit sales will occur in which stage of the product life cycle?

Kaizen means

A ____ system of production control is paced by product demand.

Why might it be necessary to make adjustments to the accounting system in a firm that adopts JIT?

The EOQ formula can be modified to calculate the number of units that should be manufactured in a production run.

Calhoun Corporation Calhoun Corporation's order quantity for Material T is 5,000 lbs.The company maintains a safety stock of T at 500 lbs. ,and its order point is 1,500 lbs. Refer to Calhoun Corporation.What is the lead time assuming daily usage is 50 lbs.?

Goods will flow through a production process at the rate of the

In a pull system of production control,inventory is produced in anticipation of customer or work center demand.

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