Question 1

The economic production run quantity directly affects the

Accepted Answer

A) order point for raw material inventories. 
B) safety stock for finished goods inventory. 
C) level of finished goods inventory. 
D) lead time for producing finished goods inventory. 
A) order point for raw material inventories. 
B) safety stock for finished goods inventory. 
C) level of finished goods inventory. 
D) lead time for producing finished goods inventory.

Question 2

A firm estimates that its annual carrying cost for material X is $.30 per lb.If the firm requires 50,000 lbs.per year,and ordering costs are $100 per order,what is the EOQ (rounded to the nearest pound)?

Accepted Answer

A) 5,774 lbs. 
B) 4,082 lbs. 
C) 1,732 lbs. 
D) 1,225 lbs. 
A) 5,774 lbs. 
B) 4,082 lbs. 
C) 1,732 lbs. 
D) 1,225 lbs.

Question 3

Which approaches to costing should be associated with each of the following life-cycle stages?

$\begin{array}{ll}
\underline{\text { Development }} & \underline{\text {Introduction} }& \underline{\text { Maturity }} 
\end{array}$

Accepted Answer

A) Kaizen Target Standard 
B) Target Standard Kaizen 
C) Target Kaizen Standard 
D) Kaizen Standard Target 
A) Kaizen Target Standard 
B) Target Standard Kaizen 
C) Target Kaizen Standard 
D) Kaizen Standard Target

Question 4

U-shaped groupings of workers and machines that improve materials handling and flow are known as

Accepted Answer

A) manufacturing cells. 
B) efficiency stations. 
C) multi-flow modules. 
D) productivity islands. 
A) manufacturing cells. 
B) efficiency stations. 
C) multi-flow modules. 
D) productivity islands.

Question 5

In which life-cycle stage are product quality improvements and stable selling prices likely to occur?

Accepted Answer

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

Question 6

Which of the following fluctuate over the product life cycle?

Accepted Answer

A) sales price per unit 
B) the types of costs that are incurred 
C) product profitability 
D) all of the above 
A) sales price per unit 
B) the types of costs that are incurred 
C) product profitability 
D) all of the above

Question 7

Phelps Corporation
Phelps Corporation's EOQ for Material A is 500 units.This EOQ is based on:
$\begin{array}{ll}
\text { Annual demand } &5,000 units  \
\text {Ordering costs } &  \$ 12.50 \

\end{array}$
.

Refer to Phelps Corporation.What is the annual carrying cost per unit for Material A?

Accepted Answer

A) $0.50 
B) $2.00 
C) $2.50 
D) $5.00 
A) $0.50 
B) $2.00 
C) $2.50 
D) $5.00

Question 8

For product life cycle costing,R&D costs are

Accepted Answer

A) expensed as incurred. 
B) capitalized and allocated over the life cycle. 
C) deducted as period costs. 
D) charged to specific departments as incurreD. 
A) expensed as incurred. 
B) capitalized and allocated over the life cycle. 
C) deducted as period costs. 
D) charged to specific departments as incurreD.

Question 9

In a JIT manufacturing environment,product costing information is least important for use in

Accepted Answer

A) work in process inventory valuation. 
B) pricing decisions. 
C) product profitability analysis. 
D) make-or-buy decisions. 
A) work in process inventory valuation. 
B) pricing decisions. 
C) product profitability analysis. 
D) make-or-buy decisions.

Question 10

Why may a JIT control system be useful in disclosing a firm's inefficiencies and problems?

Accepted Answer

The JIT control system is based on a phi

Question 11

Ongoing efforts to reduce costs,increase product quality,and/or improve production process once manufacturing has begun is known as

Accepted Answer

A) cost management. 
B) kaizen costing. 
C) target costing. 
D) life-cycle costing. 
A) cost management. 
B) kaizen costing. 
C) target costing. 
D) life-cycle costing.

Question 12

For workers in a multiprocess handling situation,which of the following happens?

$\begin{array}{ll}
\underline{\text { More flexibility }} & \underline{\text {Less processinvolvement} }
\end{array}$

Accepted Answer

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

Question 13

The connection of two or more flexible manufacturing systems via a host computer and a networking information system is known as

$\begin{array}{ll}
\text {computer integrated } &\text {electronic data} &\
 \underline{\text { manufacturing }} &\underline{\text { interchange } }
\end{array}$

Accepted Answer

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

Question 14

In analyzing production flow,a bottleneck is

Accepted Answer

A) an intermediate inventory. 
B) always off the critical path. 
C) a capacity constraint. 
D) related to a non-value-adding activity. 
A) an intermediate inventory. 
B) always off the critical path. 
C) a capacity constraint. 
D) related to a non-value-adding activity.

Question 15

Kinney Corporation estimates that it will consume 400,000 units of Part 303 in the coming year.The ordering cost for this unit is $3.20.Kinney Corporation wants to maintain a safety stock of 1,000 units,and its factory operates 200 days per year.What is the order point if the lead time is 2 days?

Accepted Answer

The order point = (daily usage

Question 16

Backflush costing is concerned with which of the following?

$\begin{array}{ll}
\underline{\text {Standard costs }} & \underline{\text {Minimal variancesfrom standard} }
\end{array}$

Accepted Answer

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

Question 17

Efficient inventory management relies largely on cost-minimization strategies.

Accepted Answer

A) True 
 B)False

Question 18

Fancy Food Corporation manufactures a special blend of beef marinade.The company buys one of the spices used in the marinade in 10-pound bags that cost $5 each.The company uses 50,000 of the bags per year,and usage occurs evenly throughout the year.
The average cost to carry a 10-pound bag in inventory per year is $1.The cost to place an order is $12.
1.Determine the economic order quantity for the spice in terms of 10 pound bags.
2.If the company works 250 days per year,on average how many bags of spice are used per working day?
3.If the lead time for an order is normally five working days,determine the reorder point.
4.If the company normally carries 50 bags as safety stock,determine the reorder point for the spice.

Accepted Answer

@#LAT-DLM& 
where EOQ = Economic order quantity
P

Question 19

JIT is a philosophy concerned with

Accepted Answer

A) when to do something. 
B) how to do something. 
C) where to do something. 
D) how much of something should be done. 
A) when to do something. 
B) how to do something. 
C) where to do something. 
D) how much of something should be done.

Question 20

The projected sales price for a new product (which is still in the development stage of the product life cycle)is $50.The company has estimated the life-cycle cost to be $30 and the first-year cost to be $60.On this type of product,the company requires a $12 per unit profit.What is the target cost of the new product?

Accepted Answer

A) $30 
B) $38 
C) $42 
D) $60 
A) $30 
B) $38 
C) $42 
D) $60

The economic production run quantity directly affects the

A firm estimates that its annual carrying cost for material X is $.30 per lb.If the firm requires 50,000 lbs.per year,and ordering costs are $100 per order,what is the EOQ (rounded to the nearest pound)?

Which approaches to costing should be associated with each of the following life-cycle stages?

U-shaped groupings of workers and machines that improve materials handling and flow are known as

In which life-cycle stage are product quality improvements and stable selling prices likely to occur?

Which of the following fluctuate over the product life cycle?

Phelps Corporation Phelps Corporation's EOQ for Material A is 500 units.This EOQ is based on: Annual demand 5,000units Ordering costs \ 12.50 . Refer to Phelps Corporation.What is the annual carrying cost per unit for Material A?

For product life cycle costing,R&D costs are

In a JIT manufacturing environment,product costing information is least important for use in

Why may a JIT control system be useful in disclosing a firm's inefficiencies and problems?

Ongoing efforts to reduce costs,increase product quality,and/or improve production process once manufacturing has begun is known as

For workers in a multiprocess handling situation,which of the following happens?

The connection of two or more flexible manufacturing systems via a host computer and a networking information system is known as computer integrated electronic data

In analyzing production flow,a bottleneck is

Kinney Corporation estimates that it will consume 400,000 units of Part 303 in the coming year.The ordering cost for this unit is $3.20.Kinney Corporation wants to maintain a safety stock of 1,000 units,and its factory operates 200 days per year.What is the order point if the lead time is 2 days?

Backflush costing is concerned with which of the following?

Efficient inventory management relies largely on cost-minimization strategies.

JIT is a philosophy concerned with

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 economic production run quantity directly affects the

A firm estimates that its annual carrying cost for material X is $.30 per lb.If the firm requires 50,000 lbs.per year,and ordering costs are $100 per order,what is the EOQ (rounded to the nearest pound)?

Which approaches to costing should be associated with each of the following life-cycle stages?

U-shaped groupings of workers and machines that improve materials handling and flow are known as

In which life-cycle stage are product quality improvements and stable selling prices likely to occur?

Which of the following fluctuate over the product life cycle?

Phelps Corporation Phelps Corporation's EOQ for Material A is 500 units.This EOQ is based on: Annual demand 5,000units Ordering costs \ 12.50 . Refer to Phelps Corporation.What is the annual carrying cost per unit for Material A?

For product life cycle costing,R&D costs are

In a JIT manufacturing environment,product costing information is least important for use in

Why may a JIT control system be useful in disclosing a firm's inefficiencies and problems?

Ongoing efforts to reduce costs,increase product quality,and/or improve production process once manufacturing has begun is known as

For workers in a multiprocess handling situation,which of the following happens?

The connection of two or more flexible manufacturing systems via a host computer and a networking information system is known as computer integrated electronic data

In analyzing production flow,a bottleneck is

Kinney Corporation estimates that it will consume 400,000 units of Part 303 in the coming year.The ordering cost for this unit is $3.20.Kinney Corporation wants to maintain a safety stock of 1,000 units,and its factory operates 200 days per year.What is the order point if the lead time is 2 days?

Backflush costing is concerned with which of the following?

Efficient inventory management relies largely on cost-minimization strategies.

JIT is a philosophy concerned with

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