Question 1

________ is a "push through" system that manufactures finished goods for inventory on the basis of demand forecasts.

Accepted Answer

A) Bottle neck 
B) Time driver 
C) Value stream 
D) Carrying costs 
E) Materials requirements planning 
A) Bottle neck 
B) Time driver 
C) Value stream 
D) Carrying costs 
E) Materials requirements planning

Question 2

Why does the cost of placing a purchase order decrease?

Accepted Answer

The cost of placing a purchase order has

Question 3

A ________ identifies potential causes of defects using a diagram that resembles the bone structure of a fish.

Accepted Answer

A) time driver 
B) value chain 
C) safety stock 
D) pareto diagram 
E) cause-and-effect diagram 
A) time driver 
B) value chain 
C) safety stock 
D) pareto diagram 
E) cause-and-effect diagram

Question 4

Higher customer satisfaction indicates that costs of quality will likely increase in the future.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true about how quality improvements affect the cost of quality?

Accepted Answer

A) Quality improvements affect the cost of quality. 
B) Some managers believe they should eliminate all failure costs and have zero defects. 
C) In successful quality programs,companies decrease the cost of quality. 
D) COQ reports provide less insight about quality improvements when manager compare trends over time. 
E) COQ reports provide more insight about quality improvements when managers compare trends over time. 
A) Quality improvements affect the cost of quality. 
B) Some managers believe they should eliminate all failure costs and have zero defects. 
C) In successful quality programs,companies decrease the cost of quality. 
D) COQ reports provide less insight about quality improvements when manager compare trends over time. 
E) COQ reports provide more insight about quality improvements when managers compare trends over time.

Question 6

________ is a formal means to distinguish between random and nonrandom variations in an operations process.

Accepted Answer

A) Stockout cost 
B) Shrinkage cost 
C) Carrying cost 
D) Static inventory method 
E) Statistical quality control (SQ
C)  
A) Stockout cost 
B) Shrinkage cost 
C) Carrying cost 
D) Static inventory method 
E) Statistical quality control (SQ
C)

Question 7

What is a control chart? How do managers plot observations?

Accepted Answer

A control chart is a graph of a series o

Question 8

Which of the following is not a benefit of business-to-business internet purchase-order links?

Accepted Answer

A) Trigger purchase order with a single computer entry. 
B) Make electronic payments for delivery orders. 
C) Reduce the cost of purchase orders. 
D) Not restricted to ordering from a single supplier. 
E) Manager is restricted to ordering from a single supplier. 
A) Trigger purchase order with a single computer entry. 
B) Make electronic payments for delivery orders. 
C) Reduce the cost of purchase orders. 
D) Not restricted to ordering from a single supplier. 
E) Manager is restricted to ordering from a single supplier.

Question 9

How do managers evaluate each alternative versus the status quo?

Accepted Answer

To evaluate each alternative versus the

Question 10

What do managers do when they are uncertain about demand,lead time,or the quantity that suppliers can provide?

Accepted Answer

If managers are uncertain abou

Question 11

How does a manager know to implement just-in-time purchasing?

Accepted Answer

A manager can relate the sensitivity in

Question 12

The Plastic Saver company produces a specialty plastic product,and has the following information available concerning its inventory items:
   
Annual demand is 30,000 packages per year.The purchase price per package is $45.
Required:
a.Compute the economic order quantity and the relevant total costs.
b.Compute the total relevant costs,assuming the quantity ordered equals 1,250 units.How many deliveries will be required at the economic order quantity?

Accepted Answer

a.The economic order quantity is 1,623 u

Question 13

________ is inventory held at all times regardless of the quantity of inventory ordered using the EOQ model.

Accepted Answer

A) Appraisal 
B) Prevention 
C) Bottleneck 
D) Safety stock 
E) Reorder point 
A) Appraisal 
B) Prevention 
C) Bottleneck 
D) Safety stock 
E) Reorder point

Question 14

________ are the costs incurred to prevent,or the costs arising as a result of,the production of a low-quality product.

Accepted Answer

A) Costs of quality 
B) Shrinkage costs 
C) Purchasing costs 
D) Ordering costs 
E) Carrying costs 
A) Costs of quality 
B) Shrinkage costs 
C) Purchasing costs 
D) Ordering costs 
E) Carrying costs

Question 15

How do quality improvements affect the cost of quality?

Accepted Answer

Redesigning the frame increases preventi

Question 16

The manager at the Trailer Manufacturing plant has the option to continue to inspect,or redesign.Listed below are the estimated effects of quality improvement on costs of quality report obtained by the managerial accountant.
   
The manager must determine and compare the inspection option,or the option to redesign.
Required:
Compute and compare the total contribution margins of the inspection option and the redesign option.Should the manager choose the inspection option or the redesign option? Show all work.

Accepted Answer

The estimated contribution margin that i

Question 17

The tool department at a large manufacturing corporation provides tools to factory employees on demand.The tool department has a variable demand.According to the manager,the demand ranges from 200-400 tools per day,with an average of 300 each day.Lila,the tool department manager,works 8 hours daily,five days weekly.Each order is for one tool and each tool takes Lila 1 minute to retrieve and notate in the log.
Required: (a)Calculate the average waiting time in minutes,and (b)the cycle time for each order.(c)Management is considering expanding Lila's duties to include logging and retrieving precision tools also.She anticipates that there would be an average of 13 precision tool requests per day,each precision tool order would take 3 minutes to complete.
Required
How would this change in Lila's duties affect the average wait time?

Accepted Answer

A) 1 minute; (b)2.3 minutes; (c)It will increase wait time by 0.53 minutes. 
B) 0.83 minutes; (b)3.83 minutes; (c)It will increase wait time by 0.65 minutes. 
C) 2.36 minutes; (b)3.48 minutes; (c)It will increase wait time by 2.76 minutes. 
D) 1.5 minutes; (b)3.2 minutes; (c)It will decrease wait time by 1.1 minutes. 
E) 4 minutes; (b)5.2 minutes; (c)It will increase wait time by 5.3 minutes. 
A) 1 minute; (b)2.3 minutes; (c)It will increase wait time by 0.53 minutes. 
B) 0.83 minutes; (b)3.83 minutes; (c)It will increase wait time by 0.65 minutes. 
C) 2.36 minutes; (b)3.48 minutes; (c)It will increase wait time by 2.76 minutes. 
D) 1.5 minutes; (b)3.2 minutes; (c)It will decrease wait time by 1.1 minutes. 
E) 4 minutes; (b)5.2 minutes; (c)It will increase wait time by 5.3 minutes.

Question 18

________ is the purchase of materials so that they are delivered just as needed for production.

Accepted Answer

A) Appraisal 
B) Just-in-time purchasing 
C) Conformance quality 
D) Manufacturing lead time 
E) Manufacturing cycle efficiency 
A) Appraisal 
B) Just-in-time purchasing 
C) Conformance quality 
D) Manufacturing lead time 
E) Manufacturing cycle efficiency

Question 19

ISO 9000,developed by the International Organization for the Standardization,is a set of five international standards for quality management adopted by more than 85 countries.

Accepted Answer

A) True 
 B)False

Question 20

What is the economic-order-quantity decision model?

Accepted Answer

An economic-order-quantity dec

________ is a "push through" system that manufactures finished goods for inventory on the basis of demand forecasts.

Why does the cost of placing a purchase order decrease?

A ________ identifies potential causes of defects using a diagram that resembles the bone structure of a fish.

Higher customer satisfaction indicates that costs of quality will likely increase in the future.

Which of the following is true about how quality improvements affect the cost of quality?

________ is a formal means to distinguish between random and nonrandom variations in an operations process.

What is a control chart? How do managers plot observations?

Which of the following is not a benefit of business-to-business internet purchase-order links?

How do managers evaluate each alternative versus the status quo?

What do managers do when they are uncertain about demand,lead time,or the quantity that suppliers can provide?

How does a manager know to implement just-in-time purchasing?

________ is inventory held at all times regardless of the quantity of inventory ordered using the EOQ model.

________ are the costs incurred to prevent,or the costs arising as a result of,the production of a low-quality product.

How do quality improvements affect the cost of quality?

________ is the purchase of materials so that they are delivered just as needed for production.

ISO 9000,developed by the International Organization for the Standardization,is a set of five international standards for quality management adopted by more than 85 countries.

What is the economic-order-quantity decision model?

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

________ is a "push through" system that manufactures finished goods for inventory on the basis of demand forecasts.

Why does the cost of placing a purchase order decrease?

A ________ identifies potential causes of defects using a diagram that resembles the bone structure of a fish.

Higher customer satisfaction indicates that costs of quality will likely increase in the future.

Which of the following is true about how quality improvements affect the cost of quality?

________ is a formal means to distinguish between random and nonrandom variations in an operations process.

What is a control chart? How do managers plot observations?

Which of the following is not a benefit of business-to-business internet purchase-order links?

How do managers evaluate each alternative versus the status quo?

What do managers do when they are uncertain about demand,lead time,or the quantity that suppliers can provide?

How does a manager know to implement just-in-time purchasing?

________ is inventory held at all times regardless of the quantity of inventory ordered using the EOQ model.

________ are the costs incurred to prevent,or the costs arising as a result of,the production of a low-quality product.

How do quality improvements affect the cost of quality?

________ is the purchase of materials so that they are delivered just as needed for production.

ISO 9000,developed by the International Organization for the Standardization,is a set of five international standards for quality management adopted by more than 85 countries.

What is the economic-order-quantity decision model?

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