Question 1

The optimal size of the safety stock is defined by the point where the

Accepted Answer

A) costs of carrying the safety stock equal stockout costs. 
B) setup costs equal stockout costs. 
C) ordering costs equal stockout costs. 
D) reorder point equals safety stock. 
A) costs of carrying the safety stock equal stockout costs. 
B) setup costs equal stockout costs. 
C) ordering costs equal stockout costs. 
D) reorder point equals safety stock.

Question 2

Value engineering seeks to obtain increased

Accepted Answer

A) product life-cycle and reduced direct labor inputs. 
B) planning team membership and reduced time-to-market. 
C) product performance ratio and reduced substitute goods. 
D) product functionality and reduced costs. 
A) product life-cycle and reduced direct labor inputs. 
B) planning team membership and reduced time-to-market. 
C) product performance ratio and reduced substitute goods. 
D) product functionality and reduced costs.

Question 3

During which stage of the product life cycle will a company witness the highest profit?

Accepted Answer

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

Question 4

Which of the following statements is false concerning electronic data interchange?

Accepted Answer

A) Electronic data interchange (EDI)is essential in a pull system. 
B) One of the benefits realized by EDI organizations is a faster processing of transactions. 
C) Electronic data interchange is essential in a push system. 
D) Electronic data interchange refers to computer-to-computer exchange of information. 
A) Electronic data interchange (EDI)is essential in a pull system. 
B) One of the benefits realized by EDI organizations is a faster processing of transactions. 
C) Electronic data interchange is essential in a push system. 
D) Electronic data interchange refers to computer-to-computer exchange of information.

Question 5

In a just-in-time (JIT)environment,quality is determined continually during the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 6

Why does a "push" based inventory control system generate larger inventory levels than a "pull" system?

Accepted Answer

Larger levels of inventory exist by desi

Question 7

Accounting for product costs in a JIT environment

Accepted Answer

A) uses a job order costing system. 
B) classifies processing costs as raw (or direct)material,direct labor,and overhead. 
C) is more complex than in other types of manufacturing environments. 
D) follows process costing procedures whereby costs are accumulated by the process (cell)and attached to units processed for the perioD. 
A) uses a job order costing system. 
B) classifies processing costs as raw (or direct)material,direct labor,and overhead. 
C) is more complex than in other types of manufacturing environments. 
D) follows process costing procedures whereby costs are accumulated by the process (cell)and attached to units processed for the perioD.

Question 8

Deluxe Jewelry Corporation produces quality jewelry items for various retailers.For the coming year,it has estimated it will consume 500 ounces of gold.Its carrying costs for a year are $2 per ounce.No safety stock is maintained.If the EOQ is 100 ounces,what is the cost per order?

Accepted Answer

A) $40 
B) $20 
C) $5 
D) $25 
A) $40 
B) $20 
C) $5 
D) $25

Question 9

Refer to Calhoun Corporation.What would be the total annual carrying costs assuming the carrying cost per unit is $0.20?

Accepted Answer

A) $1,000 
B) $600 
C) $100 
D) $1,100 
A) $1,000 
B) $600 
C) $100 
D) $1,100

Question 10

In a production cell,

Accepted Answer

A) an individual worker may be expected to operate several different machines,do setups,and perform preventive maintenance on the equipment. 
B) each worker becomes an expert in the operation of a single piece of equipment. 
C) machines are arranged so that similar machines are grouped together. 
D) clear separation is maintained between those workers who operate the machinery and those workers who set up and maintain the machinery. 
A) an individual worker may be expected to operate several different machines,do setups,and perform preventive maintenance on the equipment. 
B) each worker becomes an expert in the operation of a single piece of equipment. 
C) machines are arranged so that similar machines are grouped together. 
D) clear separation is maintained between those workers who operate the machinery and those workers who set up and maintain the machinery.

Question 11

The process of ____ occurs when equipment is programmed to stop when a certain situation arises.

Accepted Answer

A) throughput 
B) automation 
C) backflushing 
D) information sharing 
A) throughput 
B) automation 
C) backflushing 
D) information sharing

Question 12

Which of the following tells management "when" to order?

Accepted Answer

A) safety stock level 
B) order point 
C) the economic order quantity 
D) the Pareto inventory analysis 
A) safety stock level 
B) order point 
C) the economic order quantity 
D) the Pareto inventory analysis

Question 13

Which of the following might be appropriate for items in the "C" category of a Pareto inventory analysis?

Accepted Answer

A) a red-line system 
B) a two-bin system 
C) a periodic inventory system 
D) all of the above 
A) a red-line system 
B) a two-bin system 
C) a periodic inventory system 
D) all of the above

Question 14

According to JIT philosophy,

Accepted Answer

A) inventories of finished goods always should be available to meet customer demand. 
B) push-through manufacturing flows are the most efficient. 
C) maintaining inventories wastes resources and frequently covers up poor work or other problems. 
D) long production runs and large production lot sizes take advantage of economies of scale. 
A) inventories of finished goods always should be available to meet customer demand. 
B) push-through manufacturing flows are the most efficient. 
C) maintaining inventories wastes resources and frequently covers up poor work or other problems. 
D) long production runs and large production lot sizes take advantage of economies of scale.

Question 15

In a JIT system,the quality of each product begins with

Accepted Answer

A) a company's vendors. 
B) employees. 
C) inspection of finished goods inventory. 
D) a good product warranty. 
A) a company's vendors. 
B) employees. 
C) inspection of finished goods inventory. 
D) a good product warranty.

Question 16

In a just-in-time (JIT)environment,machines and workers are often rearranged into manufacturing cells.

Accepted Answer

A) True 
 B)False

Question 17

Fixed factory overhead is typically the production cost least likely to be minimized in the short run.

Accepted Answer

A) True 
 B)False

Question 18

When JIT is implemented,which of the following changes in the accounting system would not be expected?

Accepted Answer

A) fewer cost allocations 
B) elimination of standard costs 
C) combining labor and overhead into one product cost category 
D) combing raw material and materials in work-in-process into one product cost category 
A) fewer cost allocations 
B) elimination of standard costs 
C) combining labor and overhead into one product cost category 
D) combing raw material and materials in work-in-process into one product cost category

Question 19

A decrease in the lead time would reduce the

Accepted Answer

A) order point. 
B) safety stock. 
C) economic order quantity. 
D) ordering costs. 
A) order point. 
B) safety stock. 
C) economic order quantity. 
D) ordering costs.

Question 20

A costing method that involves ongoing efforts for continuous improvement to reduce product costs,increase product quality and improve the production process after manufacturing activities have begun is referred to as ______________________________.

Accepted Answer

The answer of A costing method that involves ongoing efforts...

The optimal size of the safety stock is defined by the point where the

Value engineering seeks to obtain increased

During which stage of the product life cycle will a company witness the highest profit?

Which of the following statements is false concerning electronic data interchange?

In a just-in-time (JIT)environment,quality is determined continually during the manufacturing process.

Why does a "push" based inventory control system generate larger inventory levels than a "pull" system?

Accounting for product costs in a JIT environment

Deluxe Jewelry Corporation produces quality jewelry items for various retailers.For the coming year,it has estimated it will consume 500 ounces of gold.Its carrying costs for a year are $2 per ounce.No safety stock is maintained.If the EOQ is 100 ounces,what is the cost per order?

Refer to Calhoun Corporation.What would be the total annual carrying costs assuming the carrying cost per unit is $0.20?

In a production cell,

The process of ____ occurs when equipment is programmed to stop when a certain situation arises.

Which of the following tells management "when" to order?

Which of the following might be appropriate for items in the "C" category of a Pareto inventory analysis?

According to JIT philosophy,

In a JIT system,the quality of each product begins with

In a just-in-time (JIT)environment,machines and workers are often rearranged into manufacturing cells.

Fixed factory overhead is typically the production cost least likely to be minimized in the short run.

When JIT is implemented,which of the following changes in the accounting system would not be expected?

A decrease in the lead time would reduce the

A costing method that involves ongoing efforts for continuous improvement to reduce product costs,increase product quality and improve the production process after manufacturing activities have begun is referred to as ______________________________.

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 optimal size of the safety stock is defined by the point where the

Value engineering seeks to obtain increased

During which stage of the product life cycle will a company witness the highest profit?

Which of the following statements is false concerning electronic data interchange?

In a just-in-time (JIT)environment,quality is determined continually during the manufacturing process.

Why does a "push" based inventory control system generate larger inventory levels than a "pull" system?

Accounting for product costs in a JIT environment

Deluxe Jewelry Corporation produces quality jewelry items for various retailers.For the coming year,it has estimated it will consume 500 ounces of gold.Its carrying costs for a year are $2 per ounce.No safety stock is maintained.If the EOQ is 100 ounces,what is the cost per order?

Refer to Calhoun Corporation.What would be the total annual carrying costs assuming the carrying cost per unit is $0.20?

In a production cell,

The process of ____ occurs when equipment is programmed to stop when a certain situation arises.

Which of the following tells management "when" to order?

Which of the following might be appropriate for items in the "C" category of a Pareto inventory analysis?

According to JIT philosophy,

In a JIT system,the quality of each product begins with

In a just-in-time (JIT)environment,machines and workers are often rearranged into manufacturing cells.

Fixed factory overhead is typically the production cost least likely to be minimized in the short run.

When JIT is implemented,which of the following changes in the accounting system would not be expected?

A decrease in the lead time would reduce the

A costing method that involves ongoing efforts for continuous improvement to reduce product costs,increase product quality and improve the production process after manufacturing activities have begun is referred to as ______________________________.

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