Question 1

What are costs of qualities (COQ)?

Accepted Answer

Costs of quality are the costs

Question 2

The demand-pull feature of JIT production systems prohibits close coordination among workstations.

Accepted Answer

A) True 
 B)False

Question 3

The manager at Shell Manufacturing needs to incur $90,000 in annual production costs to reduce setup times at the plant in Virginia.The manager expects JIT to reduce average inventory by $475,000 each year and relevant costs of insurance,storage,materials handling,and setup by $32,000 each year.The required rate of return on inventory investments is 10% per year.The manager reports the cost to rework 500 units each is $34,and the cost to reduce warranty repair costs on 210 units is $72 per unit.
 
Required
Compute the net incremental benefit to consider benefits of lower inventories and annual relevant benefits and costs from implementing JIT.Should the manager implement the change?

Accepted Answer

A) $11,620;no 
B) $21,620;yes 
C) $31,620;no 
D) $41,620;yes 
E) $51,620;no 
A) $11,620;no 
B) $21,620;yes 
C) $31,620;no 
D) $41,620;yes 
E) $51,620;no

Question 4

________ is a "demand pull" manufacturing system that manufactures each component in a production line as soon as,and only when,needed by the next step in the production line.

Accepted Answer

A) Bottle neck 
B) Time driver 
C) Value stream 
D) Carrying costs 
E) Just-in-time production 
A) Bottle neck 
B) Time driver 
C) Value stream 
D) Carrying costs 
E) Just-in-time production

Question 5

The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following external failure costs in 2012:
Cost of Quality Category
 
Required
Compute the external failure cost to percent of revenues of associated with this loss.

Accepted Answer

A) 4.00% 
B) 4.10% 
C) 4.20% 
D) 4.30% 
E) 4.40% 
A) 4.00% 
B) 4.10% 
C) 4.20% 
D) 4.30% 
E) 4.40%

Question 6

Companies that implement JIT purchasing choose their suppliers carefully and develop long-term supplier relationships.

Accepted Answer

A) True 
 B)False

Question 7

In which step of the five-step decision-making process would a manager determine the number of orders for a product that was received in the past,the time it takes to manufacture a product,the available capacity,and the average manufacturing cycle time for a product?

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 8

Most companies that implement JIT production do not need to implement JIT purchasing.

Accepted Answer

A) True 
 B)False

Question 9

________ is delivery of a product or service by the time it is scheduled to be delivered.

Accepted Answer

A) On-time performance 
B) Customer-response time 
C) Purchase-order lead time 
D) Manufacturing cycle time 
E) Manufacturing cycle efficiency 
A) On-time performance 
B) Customer-response time 
C) Purchase-order lead time 
D) Manufacturing cycle time 
E) Manufacturing cycle efficiency

Question 10

A time driver is any factor that causes a change in the speed of an activity when the factor changes.

Accepted Answer

A) True 
 B)False

Question 11

How do manufacturing cycle times affect revenue and costs?

Accepted Answer

Revenues are affected because customers

What are costs of qualities (COQ)?

The demand-pull feature of JIT production systems prohibits close coordination among workstations.

________ is a "demand pull" manufacturing system that manufactures each component in a production line as soon as,and only when,needed by the next step in the production line.

The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following external failure costs in 2012: Cost of Quality Category Required Compute the external failure cost to percent of revenues of associated with this loss.

Companies that implement JIT purchasing choose their suppliers carefully and develop long-term supplier relationships.

In which step of the five-step decision-making process would a manager determine the number of orders for a product that was received in the past,the time it takes to manufacture a product,the available capacity,and the average manufacturing cycle time for a product?

Most companies that implement JIT production do not need to implement JIT purchasing.

________ is delivery of a product or service by the time it is scheduled to be delivered.

A time driver is any factor that causes a change in the speed of an activity when the factor changes.

How do manufacturing cycle times affect revenue and costs?

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

What are costs of qualities (COQ)?

The demand-pull feature of JIT production systems prohibits close coordination among workstations.

________ is a "demand pull" manufacturing system that manufactures each component in a production line as soon as,and only when,needed by the next step in the production line.

The managerial accountant at the Candle Factory reported $325,000,000 in revenues and the following external failure costs in 2012: Cost of Quality Category Required Compute the external failure cost to percent of revenues of associated with this loss.

Companies that implement JIT purchasing choose their suppliers carefully and develop long-term supplier relationships.

In which step of the five-step decision-making process would a manager determine the number of orders for a product that was received in the past,the time it takes to manufacture a product,the available capacity,and the average manufacturing cycle time for a product?

Most companies that implement JIT production do not need to implement JIT purchasing.

________ is delivery of a product or service by the time it is scheduled to be delivered.

A time driver is any factor that causes a change in the speed of an activity when the factor changes.

How do manufacturing cycle times affect revenue and costs?

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