Exam 10: Quality, inventory Management, and Time

________ is a costing method that supports the creation of value to customers through cost value streams,as distinguished from individual products or departments.

In which step of the five-step decision making process would a manager realize that the primary uncertainty is how the introduction of a second product would affect manufacturing times for the product?

Glasswall Company sells 300 windows per week.Purchase-order lead time is 2 weeks and the economic order quantity is 475 units.What is the reorder point?

Winter Resort Solutions sells ski and snowboard equipment.The company also manufactures snowboards.Winter Resort Solutions orders 6,000 snowboards a year,115 per week,at $24.50 per board and it covers all shipping costs.The company earns 30% on its cash investments.The purchase-order lead time is 2.5 weeks.It sells 125 snowboards per week.The following data are available: Compute the economic order quantity for Platinum Snow Company and the reorder point.

Conformance quality is the performance of a product or service relative to its design and product specifications.

Nonfinancial measures of quality are often easy to quantify and understand.

Which of the following is not included in inventory management?

________ is the time it takes to fulfill a customer order.

When are the relevant ordering and carrying costs equal in EOQ models?

________ are costs incurred on defective products before they are shipped to customers.

The Lighthouse Factory manufactures lighthouses,and the managers sell them to the tourists in Rodanthe,North Carolina.A manager revealed that total revenues of lighthouses were $3,500,000.The only indirect appraisal costs associated with 15,000 hours of inspections in manufacturing were $20 per hour.The manager's report indicated that the there were no direct costs associated with the machine because there were no resources assigned to the management of quality of the machines. Required: Compute the total cost and the percent of revenues associated with the inspections at the Lighthouse Factory.

List and define the two basic aspects of quality.

How do companies calculate inventory carrying costs?

The managerial accountant at Change Organization needs to determine the total indirect Research and Development (R&D)cost associated with a new machine.The manager revealed total revenues were $4,000,000;and reported that the only prevention cost to allocate were 20,000 hours assigned to R&D at $35 per hour.The manager's report indicated that the there were no direct costs associated with the machine because there were no resources assigned to the management of quality of the machines. Required: Compute the total cost and the percent of revenues associated with the Research and Development at Change Organization.

Which of the following is not a quality training and quality improvement measure?

The ratio of the number of employees that indicate high satisfaction ratings to the number of employees surveyed is ________.

Bridgeview salon has a variable demand.The daily demand ranges from 150-190 customers a day with an average of 5 services purchased.The average daily demand is 170 customers.The salon operates 12 hours each day,and each service takes an average of 4 minutes.(a)Calculate the average waiting time in minutes,and (b)the cycle time for a service order.(c)Bridgeview management is considering extending the hours of the salon to 15 hour days,what affect will this change have on average waiting times?

What are the benefits of JIT purchasing?

Which of the following is not an advantage of nonfinancial measures of quality?

________ arise in preparing and issuing purchase orders,receiving and inspecting the items included in the orders,and matching invoices received,purchase orders,and delivery records to make payments.