Question 1

An implication of the demand-pull nature of the JIT production process is that

Accepted Answer

A) finished goods inventories must be available to meet customer demand,although raw material is delivered on an as-needed basis. 
B) more storage space for inventories is necessary. 
C) finished products are packaged and shipped to customers immediately,thus requiring minimal finished goods inventories. 
D) problem areas become less visible as inventories are reduceD. 
A) finished goods inventories must be available to meet customer demand,although raw material is delivered on an as-needed basis. 
B) more storage space for inventories is necessary. 
C) finished products are packaged and shipped to customers immediately,thus requiring minimal finished goods inventories. 
D) problem areas become less visible as inventories are reduceD.

Question 2

The quoted price for inventory minus discounts plus shipping charges is referred to as the ______________________________.

Accepted Answer

The answer of The quoted price for inventory minus discounts...

Question 3

Crosson Corporation
Crosson Corporation operates its factory 300 days per year.Its annual consumption of Material Y is 1,200,000 gallons.It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days.
Refer to Crosson Corporation.What is the order point for Material Y?

Accepted Answer

A) 10,000 gallons 
B) 38,000 gallons 
C) 48,000 gallons 
D) 58,000 gallons 
A) 10,000 gallons 
B) 38,000 gallons 
C) 48,000 gallons 
D) 58,000 gallons

Question 4

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.What is the most economical production run (rounded to the nearest unit)?

Accepted Answer

A) 6,000 units 
B) 3,000 units 
C) 9,295 units 
D) 3,098 units 
A) 6,000 units 
B) 3,000 units 
C) 9,295 units 
D) 3,098 units

Question 5

When a flexible manufacturing system (FMS)is used,response time to needs of the market is slower than under a traditional manufacturing system.

Accepted Answer

A) True 
 B)False

Question 6

An important focus in product life cycle costing is

Accepted Answer

A) the activity base. 
B) the target cost. 
C) the cost driver. 
D) variable costs. 
A) the activity base. 
B) the target cost. 
C) the cost driver. 
D) variable costs.

Question 7

Cost minimization is the major focus of value engineering.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an ordering cost?

Accepted Answer

A) cost of receiving inventory 
B) cost of preparing the order 
C) cost of processing payment for inventory ordered 
D) cost of storing the inventory 
A) cost of receiving inventory 
B) cost of preparing the order 
C) cost of processing payment for inventory ordered 
D) cost of storing the inventory

Question 9

From a cost management view,research and development cost represents

Accepted Answer

A) a life-cycle investment 
B) a period expense. 
C) an unearned revenue. 
D) a risk reserve. 
A) a life-cycle investment 
B) a period expense. 
C) an unearned revenue. 
D) a risk reserve.

Question 10

A machine constraint creates

Accepted Answer

A) an autonomation. 
B) a bottleneck. 
C) a push inventory system. 
D) the need for third-party logistics. 
A) an autonomation. 
B) a bottleneck. 
C) a push inventory system. 
D) the need for third-party logistics.

Question 11

Which of the following affects the order point?

Accepted Answer

A) daily usage 
B) lead time 
C) safety stock 
D) all of the above 
A) daily usage 
B) lead time 
C) safety stock 
D) all of the above

Question 12

Cost tables are databases that provide information on which of the following?

Accepted Answer

A) design specifications 
B) manufacturing processes 
C) impact on product costs when different inputs resources are used 
D) all of the above 
A) design specifications 
B) manufacturing processes 
C) impact on product costs when different inputs resources are used 
D) all of the above

Question 13

How does adopting a JIT system affect the firm's relationship with suppliers and how must suppliers change their way of doing business?

Accepted Answer

The JIT manufacturer will limit the numb

Question 14

The ____ would not affect the economic order quantity.

Accepted Answer

A) company's weighted average cost of capital 
B) cost of purchase requisition forms 
C) cost of insuring inventory 
D) cost of a stockout 
A) company's weighted average cost of capital 
B) cost of purchase requisition forms 
C) cost of insuring inventory 
D) cost of a stockout

Question 15

In the introduction stage of a product's life-cycle,which of the following type of costs typically may create losses rather than profits?

Accepted Answer

A) advertising 
B) assembly 
C) design 
D) overhead 
A) advertising 
B) assembly 
C) design 
D) overhead

Question 16

If life-cycle costs exceed the target cost of a product,managers will strive to reduce

Accepted Answer

A) the cost of special orders. 
B) the level of activities that are non-value-added. 
C) product variety. 
D) period costs. 
A) the cost of special orders. 
B) the level of activities that are non-value-added. 
C) product variety. 
D) period costs.

Question 17

Bottlenecks in a production process will cause other parts of the process to experience idle time.

Accepted Answer

A) True 
 B)False

Question 18

An artificial,computer-generated environment in which the user has the impression of being a part of the environment is referred as ______________________________.

Accepted Answer

The answer of An artificial,computer-generated environment in which the user...

Question 19

In a Pareto inventory analysis,the items that are most likely to be controlled with a red-line system are the

Accepted Answer

A) A items. 
B) B items. 
C) C items. 
D) items on a perpetual inventory. 
A) A items. 
B) B items. 
C) C items. 
D) items on a perpetual inventory.

Question 20

Striving for flexibility in the number of products that can be produced in a short period of time is characteristic of

Accepted Answer

A) EOQ systems. 
B) push systems in general. 
C) JIT. 
D) pull systems in general. 
A) EOQ systems. 
B) push systems in general. 
C) JIT. 
D) pull systems in general.

An implication of the demand-pull nature of the JIT production process is that

The quoted price for inventory minus discounts plus shipping charges is referred to as the ______________________________.

Crosson Corporation Crosson Corporation operates its factory 300 days per year.Its annual consumption of Material Y is 1,200,000 gallons.It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. Refer to Crosson Corporation.What is the order point for Material Y?

When a flexible manufacturing system (FMS)is used,response time to needs of the market is slower than under a traditional manufacturing system.

An important focus in product life cycle costing is

Cost minimization is the major focus of value engineering.

Which of the following is not an ordering cost?

From a cost management view,research and development cost represents

A machine constraint creates

Which of the following affects the order point?

Cost tables are databases that provide information on which of the following?

How does adopting a JIT system affect the firm's relationship with suppliers and how must suppliers change their way of doing business?

The ____ would not affect the economic order quantity.

In the introduction stage of a product's life-cycle,which of the following type of costs typically may create losses rather than profits?

If life-cycle costs exceed the target cost of a product,managers will strive to reduce

Bottlenecks in a production process will cause other parts of the process to experience idle time.

An artificial,computer-generated environment in which the user has the impression of being a part of the environment is referred as ______________________________.

In a Pareto inventory analysis,the items that are most likely to be controlled with a red-line system are the

Striving for flexibility in the number of products that can be produced in a short period of time is characteristic of

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

An implication of the demand-pull nature of the JIT production process is that

The quoted price for inventory minus discounts plus shipping charges is referred to as the ______________________________.

Crosson Corporation Crosson Corporation operates its factory 300 days per year.Its annual consumption of Material Y is 1,200,000 gallons.It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. Refer to Crosson Corporation.What is the order point for Material Y?

When a flexible manufacturing system (FMS)is used,response time to needs of the market is slower than under a traditional manufacturing system.

An important focus in product life cycle costing is

Cost minimization is the major focus of value engineering.

Which of the following is not an ordering cost?

From a cost management view,research and development cost represents

A machine constraint creates

Which of the following affects the order point?

Cost tables are databases that provide information on which of the following?

How does adopting a JIT system affect the firm's relationship with suppliers and how must suppliers change their way of doing business?

The ____ would not affect the economic order quantity.

In the introduction stage of a product's life-cycle,which of the following type of costs typically may create losses rather than profits?

If life-cycle costs exceed the target cost of a product,managers will strive to reduce

Bottlenecks in a production process will cause other parts of the process to experience idle time.

An artificial,computer-generated environment in which the user has the impression of being a part of the environment is referred as ______________________________.

In a Pareto inventory analysis,the items that are most likely to be controlled with a red-line system are the

Striving for flexibility in the number of products that can be produced in a short period of time is characteristic of

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