Question 1

All other factors equal,a decrease in the order quantity will

Accepted Answer

A) decrease the annual carrying costs. 
B) decrease the annual ordering costs. 
C) increase the lead time. 
D) reduce the safety stock. 
A) decrease the annual carrying costs. 
B) decrease the annual ordering costs. 
C) increase the lead time. 
D) reduce the safety stock.

Question 2

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 would be the estimate for Deluxe Jewelry' total carrying costs for the coming year?

Accepted Answer

A) $200 
B) $250 
C) $100 
D) $1,000 
A) $200 
B) $250 
C) $100 
D) $1,000

Question 3

If a company carries safety stock and its annual carrying costs per unit are $0.30,what formula yields the total annual carrying costs?

Accepted Answer

A) $0.30 ´ [(EOQ/2)+ Safety stock)] 
B) $0.30 ´ (EOQ + Safety stock) 
C) $0.30 ´ [(EOQ ´ 2)+ Safety stock)] 
D) $0.30 ´ (EOQ - Safety stock) 
A) $0.30 ´ [(EOQ/2)+ Safety stock)] 
B) $0.30 ´ (EOQ + Safety stock) 
C) $0.30 ´ [(EOQ ´ 2)+ Safety stock)] 
D) $0.30 ´ (EOQ - Safety stock)

Question 4

The flow of goods through a production process cannot be at a faster rate than the slowest bottleneck is the definition for

Accepted Answer

A) mass customization. 
B) business process reengineering. 
C) the theory of constraints. 
D) the Pareto principle. 
A) mass customization. 
B) business process reengineering. 
C) the theory of constraints. 
D) the Pareto principle.

Question 5

A system of producing inventory where goods are produced only when needed by a customer or work center is referred to as a _________________________.

Accepted Answer

The answer of A system of producing inventory where goods...

Question 6

Compare and contrast traditional manufacturing systems with flexible manufacturing systems on the following factors:
            Factor        Traditional Manufacturing       Flexible Manufacturing System               Product Variety                             Response time to market needs                             Worker tasks                             Production runs                             Lot sizes                             Setups                             Information requirements                             Production activity

Accepted Answer

The answer of Compare and contrast traditional manufacturing systems with...

Question 7

The theory of constraints can

Accepted Answer

A) identify what limitations exist with raw material suppliers. 
B) follows a methodology similar to linear programming. 
C) be ignored since it assumes too many estimates in the production cycle. 
D) show where bottlenecks exist and sets the limit of output to these bottlenecks. 
A) identify what limitations exist with raw material suppliers. 
B) follows a methodology similar to linear programming. 
C) be ignored since it assumes too many estimates in the production cycle. 
D) show where bottlenecks exist and sets the limit of output to these bottlenecks.

Question 8

A mandate to reduce costs,increase product quality,and/or improve production processes through continuous improvement is known as

Accepted Answer

A) kaizen costing. 
B) activity-based costing. 
C) the theory of constraints. 
D) mass customization. 
A) kaizen costing. 
B) activity-based costing. 
C) the theory of constraints. 
D) mass customization.

Question 9

The term "cell" is used to describe

Accepted Answer

A) a grouping of one or more automated machines within a company. 
B) a storage bin for "C" type inventory in an ABC inventory system. 
C) files in a CAD/CAM system. 
D) a factory's area of conversion activity. 
A) a grouping of one or more automated machines within a company. 
B) a storage bin for "C" type inventory in an ABC inventory system. 
C) files in a CAD/CAM system. 
D) a factory's area of conversion activity.

Question 10

Which of the following statements is not true?

Accepted Answer

A) JIT manufacturing strives for zero inventories. 
B) JIT manufacturing strives for zero defects. 
C) JIT manufacturing uses manufacturing cells. 
D) JIT manufacturing utilizes long lead time and few deliveries. 
A) JIT manufacturing strives for zero inventories. 
B) JIT manufacturing strives for zero defects. 
C) JIT manufacturing uses manufacturing cells. 
D) JIT manufacturing utilizes long lead time and few deliveries.

Question 11

What is the relationship between warehouse space and the length of production runs?

Accepted Answer

Longer production runs increas

Question 12

Most studies have indicated that what percent of a product's total life-cycle costs are determined in the development/design stage?

Accepted Answer

A) 60%-70% 
B) 70%-80% 
C) 80%-90% 
D) 90%-95% 
A) 60%-70% 
B) 70%-80% 
C) 80%-90% 
D) 90%-95%

Question 13

Which of the following areas offers an opportunity to eliminate waste?

Accepted Answer

A) raw material and labor 
B) space and production time 
C) recordkeeping and working capital 
D) all of the above 
A) raw material and labor 
B) space and production time 
C) recordkeeping and working capital 
D) all of the above

Question 14

A formula that indicates the optimal number of units to order is referred to as __________________________________________________.
or

Accepted Answer

economic o

Question 15

Bottlenecks are

Accepted Answer

A) machine constraints in the production line. 
B) machine constraints that restrict the production cycle so idle time at other processes occurs. 
C) useful for identifying any production spot slowdown. 
D) restrictions on raw material sources but not the quantity of output. 
A) machine constraints in the production line. 
B) machine constraints that restrict the production cycle so idle time at other processes occurs. 
C) useful for identifying any production spot slowdown. 
D) restrictions on raw material sources but not the quantity of output.

Question 16

Managing constraints is a process of

Accepted Answer

A) backflush costing. 
B) design for manufacturability. 
C) just-in-time redesign. 
D) continuous improvement. 
A) backflush costing. 
B) design for manufacturability. 
C) just-in-time redesign. 
D) continuous improvement.

Question 17

Discuss differences in approach and potential usage between target and kaizen costing.

Accepted Answer

Target costing is considered a procedura

Question 18

What are the three primary goals of the just-in-time (JIT)philosophy?

Accepted Answer

1. Elinination of any prochuction proces

Question 19

Why is it important for a company to be (geographically)close to its suppliers to implement a JIT inventory control system?

Accepted Answer

The geographical proximity is important

Question 20

Seminole Manufacturing Company estimates that it will consume 400,000 units of Part 101 in the coming year.The ordering cost for this unit is $3.20.What would be the carrying costs per unit if the EOQ model indicates that it is optimal to place exactly 50 orders for the upcoming year?

Accepted Answer

If projected usage for the year is 400,0

All other factors equal,a decrease in the order quantity will

If a company carries safety stock and its annual carrying costs per unit are $0.30,what formula yields the total annual carrying costs?

The flow of goods through a production process cannot be at a faster rate than the slowest bottleneck is the definition for

A system of producing inventory where goods are produced only when needed by a customer or work center is referred to as a _________________________.

The theory of constraints can

A mandate to reduce costs,increase product quality,and/or improve production processes through continuous improvement is known as

The term "cell" is used to describe

Which of the following statements is not true?

What is the relationship between warehouse space and the length of production runs?

Most studies have indicated that what percent of a product's total life-cycle costs are determined in the development/design stage?

Which of the following areas offers an opportunity to eliminate waste?

A formula that indicates the optimal number of units to order is referred to as __________________________________________________. or

Bottlenecks are

Managing constraints is a process of

Discuss differences in approach and potential usage between target and kaizen costing.

What are the three primary goals of the just-in-time (JIT)philosophy?

Why is it important for a company to be (geographically)close to its suppliers to implement a JIT inventory control system?

Seminole Manufacturing Company estimates that it will consume 400,000 units of Part 101 in the coming year.The ordering cost for this unit is $3.20.What would be the carrying costs per unit if the EOQ model indicates that it is optimal to place exactly 50 orders for the upcoming year?

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

Factor	Traditional Manufacturing	Flexible Manufacturing System
Product Variety
Response time to market needs
Worker tasks
Production runs
Lot sizes
Setups
Information requirements
Production activity

Exam 18: Inventory and Production Management

All other factors equal,a decrease in the order quantity will

If a company carries safety stock and its annual carrying costs per unit are $0.30,what formula yields the total annual carrying costs?

The flow of goods through a production process cannot be at a faster rate than the slowest bottleneck is the definition for

A system of producing inventory where goods are produced only when needed by a customer or work center is referred to as a _________________________.

The theory of constraints can

A mandate to reduce costs,increase product quality,and/or improve production processes through continuous improvement is known as

The term "cell" is used to describe

Which of the following statements is not true?

What is the relationship between warehouse space and the length of production runs?

Most studies have indicated that what percent of a product's total life-cycle costs are determined in the development/design stage?

Which of the following areas offers an opportunity to eliminate waste?

A formula that indicates the optimal number of units to order is referred to as __________________________________________________. or

Bottlenecks are

Managing constraints is a process of

Discuss differences in approach and potential usage between target and kaizen costing.

What are the three primary goals of the just-in-time (JIT)philosophy?

Why is it important for a company to be (geographically)close to its suppliers to implement a JIT inventory control system?

Seminole Manufacturing Company estimates that it will consume 400,000 units of Part 101 in the coming year.The ordering cost for this unit is $3.20.What would be the carrying costs per unit if the EOQ model indicates that it is optimal to place exactly 50 orders for the upcoming year?

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