Question 1

Purchasing costs are the cost of goods acquired from suppliers,including incoming freight costs.

Accepted Answer

A) True 
 B)False

Question 2

The EOQ model is solved using calculus,but the key is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs.

Accepted Answer

A) True 
 B)False

Question 3

What is a benefit of lean accounting compared to traditional product costing?

Accepted Answer

Lean accounting is much simpler than tra

Question 4

Statistical procedures have been developed using the trend as well as the variation to evaluate whether a process is out of control.

Accepted Answer

A) True 
 B)False

Question 5

How do managers use enterprise resource planning to collect data? What are the benefits of this system?

Accepted Answer

Managers use a single database to collec

Question 6

How can managers create a quality culture in an organization?

Accepted Answer

To create a quality culture,ma

Question 7

________ is the average amount of time that an order waits in line before the machine is set up and the order is processed.

Accepted Answer

A) Receipt time 
B) Average wait time 
C) Customer-response time 
D) Purchase-order lead time 
E) Manufacturing cycle efficiency 
A) Receipt time 
B) Average wait time 
C) Customer-response time 
D) Purchase-order lead time 
E) Manufacturing cycle efficiency

Question 8

Managers only use personal observation to evaluate and control JIT performance.

Accepted Answer

A) True 
 B)False

Question 9

What is the effect of JIT systems on product costing?

Accepted Answer

JIT systems reduce overhead costs becaus

Question 10

A ________ is a chart that indicates how frequently each type of defect occurs,ordered from the most frequent to the least frequent.

Accepted Answer

A) chart 
B) linear 
C) quality 
D) pareto diagram 
E) lean production 
A) chart 
B) linear 
C) quality 
D) pareto diagram 
E) lean production

Question 11

Do companies view time as a driver of strategy?

Accepted Answer

Yes,the manager can view time as a drive

Question 12

Customer response time is an example of a time-related customer measure.

Accepted Answer

A) True 
 B)False

Question 13

JIT inventory is not guided solely by the EOQ model because that model only emphasizes the tradeoff between relevant carrying and ordering costs.

Accepted Answer

A) True 
 B)False

Question 14

Total COQ helps managers aggregate costs to evaluate tradeoffs among prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

A) True 
 B)False

Question 15

Stockout costs arise when a company runs out of a particular item for which there is customer demand.

Accepted Answer

A) True 
 B)False

Question 16

The American Society for Quality defines ________ as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use.

Accepted Answer

A) costs 
B) margin 
C) quality 
D) integrity 
E) appraisal 
A) costs 
B) margin 
C) quality 
D) integrity 
E) appraisal

Question 17

In which step of the five-step decision-making process would the manager evaluate the impact of a quality improvement system?

Accepted Answer

A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain information. 
C) Step 3: Make predictions about the future. 
D) Step 4: Make decisions by choosing among alternatives. 
E) Step 5: Implement the decision,evaluate performance,and learn. 
A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain information. 
C) Step 3: Make predictions about the future. 
D) Step 4: Make decisions by choosing among alternatives. 
E) Step 5: Implement the decision,evaluate performance,and learn.

Question 18

Which of the following is not true about just-in-time purchasing?

Accepted Answer

A) Benefits include lower carrying costs as a result of quality. 
B) Benefits include lower inspection costs as a result of quality. 
C) Benefits include lower repair costs as a result of quality. 
D) Just-in-time purchasing provides managers with immediate feedback about defects. 
E) Benefits would be less if the analysis had included other costs of quality. 
A) Benefits include lower carrying costs as a result of quality. 
B) Benefits include lower inspection costs as a result of quality. 
C) Benefits include lower repair costs as a result of quality. 
D) Just-in-time purchasing provides managers with immediate feedback about defects. 
E) Benefits would be less if the analysis had included other costs of quality.

Question 19

Monique's Gas-n-Go is considered to have a variable demand.The daily demand ranges from 240-300 customers per day,and they each purchase an average of four items.The average daily demand is 270 customers.The convenience store currently operates 12 hours each day and each order takes approximately 2 minutes.
Required
(a)Compute the average waiting time in minutes; (b)compute the cycle time for an order;and, (c)If Monique increased the hours that the store is open per day to 18 hours,how would that effect the average waiting time?

Accepted Answer

A) 3 minutes / (b)4 minutes/(c)waiting time will decrease by 1.2 minutes 
B) 1 minute / (b)3 minutes/(c)Waiting time will increase by 1 minute 
C) 3 minutes / (b)5 minutes/(c)Waiting time will decrease by 1 minute 
D) 5 minutes / (b)4 minutes/(c)Waiting time will increase by 1.2 minutes. 
E) 2 minutes / (b)3 minutes/(c)Waiting time will not change. 
A) 3 minutes / (b)4 minutes/(c)waiting time will decrease by 1.2 minutes 
B) 1 minute / (b)3 minutes/(c)Waiting time will increase by 1 minute 
C) 3 minutes / (b)5 minutes/(c)Waiting time will decrease by 1 minute 
D) 5 minutes / (b)4 minutes/(c)Waiting time will increase by 1.2 minutes. 
E) 2 minutes / (b)3 minutes/(c)Waiting time will not change.

Question 20

Why do managers establish business-to-business purchase-order links?

Accepted Answer

Managers can establish these links with

Purchasing costs are the cost of goods acquired from suppliers,including incoming freight costs.

The EOQ model is solved using calculus,but the key is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs.

What is a benefit of lean accounting compared to traditional product costing?

Statistical procedures have been developed using the trend as well as the variation to evaluate whether a process is out of control.

How do managers use enterprise resource planning to collect data? What are the benefits of this system?

How can managers create a quality culture in an organization?

________ is the average amount of time that an order waits in line before the machine is set up and the order is processed.

Managers only use personal observation to evaluate and control JIT performance.

What is the effect of JIT systems on product costing?

A ________ is a chart that indicates how frequently each type of defect occurs,ordered from the most frequent to the least frequent.

Do companies view time as a driver of strategy?

Customer response time is an example of a time-related customer measure.

JIT inventory is not guided solely by the EOQ model because that model only emphasizes the tradeoff between relevant carrying and ordering costs.

Total COQ helps managers aggregate costs to evaluate tradeoffs among prevention costs,appraisal costs,internal failure costs,and external failure costs.

Stockout costs arise when a company runs out of a particular item for which there is customer demand.

The American Society for Quality defines ________ as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use.

In which step of the five-step decision-making process would the manager evaluate the impact of a quality improvement system?

Which of the following is not true about just-in-time purchasing?

Why do managers establish business-to-business purchase-order links?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 10: Quality, inventory Management, and Time

Purchasing costs are the cost of goods acquired from suppliers,including incoming freight costs.

The EOQ model is solved using calculus,but the key is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs.

What is a benefit of lean accounting compared to traditional product costing?

Statistical procedures have been developed using the trend as well as the variation to evaluate whether a process is out of control.

How do managers use enterprise resource planning to collect data? What are the benefits of this system?

How can managers create a quality culture in an organization?

________ is the average amount of time that an order waits in line before the machine is set up and the order is processed.

Managers only use personal observation to evaluate and control JIT performance.

What is the effect of JIT systems on product costing?

A ________ is a chart that indicates how frequently each type of defect occurs,ordered from the most frequent to the least frequent.

Do companies view time as a driver of strategy?

Customer response time is an example of a time-related customer measure.

JIT inventory is not guided solely by the EOQ model because that model only emphasizes the tradeoff between relevant carrying and ordering costs.

Total COQ helps managers aggregate costs to evaluate tradeoffs among prevention costs,appraisal costs,internal failure costs,and external failure costs.

Stockout costs arise when a company runs out of a particular item for which there is customer demand.

The American Society for Quality defines ________ as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use.

In which step of the five-step decision-making process would the manager evaluate the impact of a quality improvement system?

Which of the following is not true about just-in-time purchasing?

Why do managers establish business-to-business purchase-order links?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters