Question 1

What does the term "pull" mean in the context of production control?

Accepted Answer

Pull simply refers to the fact that the

Question 2

The product life cycle has a significant impact on costs and profits.

Accepted Answer

A) True 
 B)False

Question 3

The process that determines an allowable product cost while setting market price and allowing for an acceptable profit margin is known as

Accepted Answer

A) target costing. 
B) product life cycle costing. 
C) activity-based costing. 
D) responsibility costing. 
A) target costing. 
B) product life cycle costing. 
C) activity-based costing. 
D) responsibility costing.

Question 4

A search for various feasible combinations of resources and methods that will increase functionality and reduce costs is referred to as ______________________________.

Accepted Answer

The answer of A search for various feasible combinations of...

Question 5

Approximately what percentage of future product costs is determined in the development stage of the product life cycle?

Accepted Answer

A) 30% 
B) 50% 
C) 70% 
D) 90% 
A) 30% 
B) 50% 
C) 70% 
D) 90%

Question 6

An investment in inventory yields a return when it is sold to a third party.

Accepted Answer

A) True 
 B)False

Question 7

Identify and discuss how sales and costs are affected during the five stages of the product life cycle.

Accepted Answer

The five stages of the product life cycl

Question 8

Sterling Vision Corporation
Sterling Vision Corporation manufactures various glass products including a car window.The setup cost to produce the car window is $1,200.The cost to carry a window in inventory is $3 per year.Annual demand for the car window is 12,000 units.
Refer to Sterling Vision Corporation.If the annual demand for the car window was to increase to 15,000 units,

Accepted Answer

A) the number of setups would decrease. 
B) the total carrying costs would increase. 
C) the economic order quantity would decline. 
D) all of the above would occur. 
A) the number of setups would decrease. 
B) the total carrying costs would increase. 
C) the economic order quantity would decline. 
D) all of the above would occur.

Question 9

In a just-in-time (JIT)environment,end-of-period variance analysis and reporting does not occur.

Accepted Answer

A) True 
 B)False

Question 10

In which of the following stages of the product life cycle would operating losses not be expected?

Accepted Answer

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

Question 11

What is the purpose of the EOQ model?

Accepted Answer

The purpose of the EOQ model is to ident

Question 12

For Raw Material B,a company maintains a safety stock of 5,000 pounds.Its average inventory (taking into account the safety stock)is 8,000 pounds.What is the apparent order quantity?

Accepted Answer

A) 16,000 lbs. 
B) 6,000 lbs. 
C) 10,000 lbs. 
D) 21,000 lbs. 
A) 16,000 lbs. 
B) 6,000 lbs. 
C) 10,000 lbs. 
D) 21,000 lbs.

Question 13

Profit maximization is the major focus of value engineering.

Accepted Answer

A) True 
 B)False

Question 14

The size of the safety stock is directly affected by all of the following except the

Accepted Answer

A) cost of a stockout. 
B) probability of a stockout. 
C) carrying cost of stock. 
D) economic order quantity. 
A) cost of a stockout. 
B) probability of a stockout. 
C) carrying cost of stock. 
D) economic order quantity.

Question 15

Companies have often produced significant amounts of excess inventory because of

Accepted Answer

A) variable overhead allocation methodologies. 
B) fixed overhead allocation methodologies. 
C) variable and fixed overhead allocation methodologies. 
D) the financial accounting requirement to expense research and development as incurreD. 
A) variable overhead allocation methodologies. 
B) fixed overhead allocation methodologies. 
C) variable and fixed overhead allocation methodologies. 
D) the financial accounting requirement to expense research and development as incurreD.

Question 16

Economic order quantity (EOQ)is compatible with just-in-time systems.

Accepted Answer

A) True 
 B)False

Question 17

JIT concepts

Accepted Answer

A) can be effectively implemented in organizations that are only partially automated. 
B) are only appropriate for use with CIM systems. 
C) involve shifting from a capital-intensive to a labor-intensive process. 
D) require full computerization of the JIT manufacturing process. 
A) can be effectively implemented in organizations that are only partially automated. 
B) are only appropriate for use with CIM systems. 
C) involve shifting from a capital-intensive to a labor-intensive process. 
D) require full computerization of the JIT manufacturing process.

Question 18

When a flexible manufacturing system (FMS)is used,worker tasks are more diverse than under a traditional manufacturing system.

Accepted Answer

A) True 
 B)False

Question 19

The number of orders that will be submitted each year for raw material is given by which formula?

Accepted Answer

A) Economic order quantity ´ order point 
B) Total annual material needs/economic order quantity 
C) Order point/economic order quantity 
D) Total annual material needs/safety stock 
A) Economic order quantity ´ order point 
B) Total annual material needs/economic order quantity 
C) Order point/economic order quantity 
D) Total annual material needs/safety stock

Question 20

Placing quality inspection points ahead of bottlenecks will reduce

Accepted Answer

A) product flow. 
B) the number of defective products. 
C) the influence of constraints on production flow. 
D) the critical path time. 
A) product flow. 
B) the number of defective products. 
C) the influence of constraints on production flow. 
D) the critical path time.

What does the term "pull" mean in the context of production control?

The product life cycle has a significant impact on costs and profits.

The process that determines an allowable product cost while setting market price and allowing for an acceptable profit margin is known as

A search for various feasible combinations of resources and methods that will increase functionality and reduce costs is referred to as ______________________________.

Approximately what percentage of future product costs is determined in the development stage of the product life cycle?

An investment in inventory yields a return when it is sold to a third party.

Identify and discuss how sales and costs are affected during the five stages of the product life cycle.

In a just-in-time (JIT)environment,end-of-period variance analysis and reporting does not occur.

In which of the following stages of the product life cycle would operating losses not be expected?

What is the purpose of the EOQ model?

For Raw Material B,a company maintains a safety stock of 5,000 pounds.Its average inventory (taking into account the safety stock)is 8,000 pounds.What is the apparent order quantity?

Profit maximization is the major focus of value engineering.

The size of the safety stock is directly affected by all of the following except the

Companies have often produced significant amounts of excess inventory because of

Economic order quantity (EOQ)is compatible with just-in-time systems.

JIT concepts

When a flexible manufacturing system (FMS)is used,worker tasks are more diverse than under a traditional manufacturing system.

The number of orders that will be submitted each year for raw material is given by which formula?

Placing quality inspection points ahead of bottlenecks will reduce

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

What does the term "pull" mean in the context of production control?

The product life cycle has a significant impact on costs and profits.

The process that determines an allowable product cost while setting market price and allowing for an acceptable profit margin is known as

A search for various feasible combinations of resources and methods that will increase functionality and reduce costs is referred to as ______________________________.

Approximately what percentage of future product costs is determined in the development stage of the product life cycle?

An investment in inventory yields a return when it is sold to a third party.

Identify and discuss how sales and costs are affected during the five stages of the product life cycle.

In a just-in-time (JIT)environment,end-of-period variance analysis and reporting does not occur.

In which of the following stages of the product life cycle would operating losses not be expected?

What is the purpose of the EOQ model?

For Raw Material B,a company maintains a safety stock of 5,000 pounds.Its average inventory (taking into account the safety stock)is 8,000 pounds.What is the apparent order quantity?

Profit maximization is the major focus of value engineering.

The size of the safety stock is directly affected by all of the following except the

Companies have often produced significant amounts of excess inventory because of

Economic order quantity (EOQ)is compatible with just-in-time systems.

JIT concepts

When a flexible manufacturing system (FMS)is used,worker tasks are more diverse than under a traditional manufacturing system.

The number of orders that will be submitted each year for raw material is given by which formula?

Placing quality inspection points ahead of bottlenecks will reduce

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