Question 1

The expenses associated with a product recall are ________ costs.

Accepted Answer

A) prevention 
B) inspection 
C) internal failure 
D) external failure 
A) prevention 
B) inspection 
C) internal failure 
D) external failure

Question 2

Gulshan Parvana operates a machine shop in Istanbul,Turkey.She places bids on small projects in the metropolitan area.Which of the following is most likely to be a cost driver that should be considered when determining how to allocate utility costs?

Accepted Answer

A) number of projects completed 
B) number of units produced 
C) number of labor hours 
D) sales revenue 
A) number of projects completed 
B) number of units produced 
C) number of labor hours 
D) sales revenue

Question 3

The ________ authorizes the transfer of raw materials from the storeroom to the production floor.

Accepted Answer

A) bill of materials 
B) production order 
C) materials requisition 
D) move ticket 
A) bill of materials 
B) production order 
C) materials requisition 
D) move ticket

Question 4

At the end of each production run,preventive maintenance is done on the assembly line.The expenses associated with this maintenance are ________ overhead.

Accepted Answer

A) batch-related 
B) product-related 
C) company wide 
D) department-based 
A) batch-related 
B) product-related 
C) company wide 
D) department-based

Question 5

Grizzly Delivery determines the cost per delivery by averaging total cost over the number of deliveries.What costing approach does Grizzly Delivery use?

Accepted Answer

A) unit-based 
B) job-order 
C) process 
D) activity-based 
A) unit-based 
B) job-order 
C) process 
D) activity-based

Question 6

Identify one control that can be used to mitigate the threat of poor product design that results in excess costs.

Accepted Answer

A) production planning systems 
B) analysis of warranty and repair costs 
C) encryption 
D) insurance 
A) production planning systems 
B) analysis of warranty and repair costs 
C) encryption 
D) insurance

Question 7

Detailed data about reasons for warranty and repair costs is considered an applicable control used to mitigate the threat of

Accepted Answer

A) underproduction. 
B) overproduction. 
C) poor product design. 
D) suboptimal investment of fixed assets. 
A) underproduction. 
B) overproduction. 
C) poor product design. 
D) suboptimal investment of fixed assets.

Question 8

Which type of information below should not be maintained by the AIS in accounting for fixed assets?

Accepted Answer

A) Identification/serial number . 
B) Cost. 
C) Improvements. 
D) Market value. 
A) Identification/serial number . 
B) Cost. 
C) Improvements. 
D) Market value.

Question 9

________ are associated with testing to ensure that products meet quality standards.

Accepted Answer

A) External failure costs 
B) Inspection costs 
C) Internal failure costs 
D) Prevention costs 
A) External failure costs 
B) Inspection costs 
C) Internal failure costs 
D) Prevention costs

Question 10

A master production schedule is used to develop detailed

Accepted Answer

A) timetables of daily production and determine raw material needs. 
B) reports on daily production and material usage. 
C) daily reports on direct labor needs. 
D) inventory charts. 
A) timetables of daily production and determine raw material needs. 
B) reports on daily production and material usage. 
C) daily reports on direct labor needs. 
D) inventory charts.

Question 11

The AIS compiles and feeds information among the business cycles.What is the relationship between the revenue and production cycles regarding the exchange of information?

Accepted Answer

A) The revenue cycle provides sales forecast and customer order information to the production cycle,but the production cycle sends information back to revenue about finished goods production. 
B) The revenue cycle receives information from the production cycle about raw materials needs. 
C) The production cycle sends cost of goods manufactured information back to the revenue cycle. 
D) The production cycle does not exchange information with the revenue cycle. 
A) The revenue cycle provides sales forecast and customer order information to the production cycle,but the production cycle sends information back to revenue about finished goods production. 
B) The revenue cycle receives information from the production cycle about raw materials needs. 
C) The production cycle sends cost of goods manufactured information back to the revenue cycle. 
D) The production cycle does not exchange information with the revenue cycle.

Question 12

What specific control can help restrict the rights of authorized users to only the portion of a database needed to complete their specific job duties?

Accepted Answer

A) an access control matrix 
B) passwords and user IDs 
C) closed-loop verification 
D) specific authorization 
A) an access control matrix 
B) passwords and user IDs 
C) closed-loop verification 
D) specific authorization

Question 13

In an Activity-Based Costing (ABC)system,a cause-and-effect relationship is known as a

Accepted Answer

A) cost stimulator. 
B) overhead stimulator. 
C) cost driver. 
D) cost catalyst. 
A) cost stimulator. 
B) overhead stimulator. 
C) cost driver. 
D) cost catalyst.

Question 14

Which of the following controls can minimize the threat of unauthorized disclosure of sensitive information?

Accepted Answer

A) The use of innovative performance metrics. 
B) The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities. 
C) The use of encryption. 
D) The use of production planning systems. 
A) The use of innovative performance metrics. 
B) The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities. 
C) The use of encryption. 
D) The use of production planning systems.

Question 15

"Push manufacturing" is also known as

Accepted Answer

A) manufacturing resource planning (MRP). 
B) just-in-time manufacturing system (JIT). 
C) the economic order quantity (EOQ)system. 
D) ahead-of-time production implementation (ATPI). 
A) manufacturing resource planning (MRP). 
B) just-in-time manufacturing system (JIT). 
C) the economic order quantity (EOQ)system. 
D) ahead-of-time production implementation (ATPI).

Question 16

Maintaining physical custody of the raw materials and finished goods inventories is the responsibility
of the accounting department.

Accepted Answer

A) True 
 B)False

Question 17

The production cycle differs from the revenue and expenditure cycles for all the following reasons except

Accepted Answer

A) cost accounting is involved in all activities. 
B) not all organizations have a production cycle. 
C) there are no direct external data sources or destinations. 
D) very little technology exists to make activities more efficient. 
A) cost accounting is involved in all activities. 
B) not all organizations have a production cycle. 
C) there are no direct external data sources or destinations. 
D) very little technology exists to make activities more efficient.

Question 18

Discuss the three categories of overhead costs in an activity-based costing system.

Accepted Answer

The three separate categories of overhea

Question 19

The expenses associated with disposal of defective products are ________ costs.

Accepted Answer

A) prevention 
B) inspection 
C) internal failure 
D) external failure 
A) prevention 
B) inspection 
C) internal failure 
D) external failure

Question 20

Discuss two measures that can address the threats of inefficiencies and quality controls problems.

Accepted Answer

Throughput represents the number of good

Exam 14: The Production Cycle

The expenses associated with a product recall are ________ costs.

Gulshan Parvana operates a machine shop in Istanbul,Turkey.She places bids on small projects in the metropolitan area.Which of the following is most likely to be a cost driver that should be considered when determining how to allocate utility costs?

The ________ authorizes the transfer of raw materials from the storeroom to the production floor.

At the end of each production run,preventive maintenance is done on the assembly line.The expenses associated with this maintenance are ________ overhead.

Grizzly Delivery determines the cost per delivery by averaging total cost over the number of deliveries.What costing approach does Grizzly Delivery use?

Identify one control that can be used to mitigate the threat of poor product design that results in excess costs.

Detailed data about reasons for warranty and repair costs is considered an applicable control used to mitigate the threat of

Which type of information below should not be maintained by the AIS in accounting for fixed assets?

________ are associated with testing to ensure that products meet quality standards.

A master production schedule is used to develop detailed

The AIS compiles and feeds information among the business cycles.What is the relationship between the revenue and production cycles regarding the exchange of information?

What specific control can help restrict the rights of authorized users to only the portion of a database needed to complete their specific job duties?

In an Activity-Based Costing (ABC)system,a cause-and-effect relationship is known as a

Which of the following controls can minimize the threat of unauthorized disclosure of sensitive information?

"Push manufacturing" is also known as

Maintaining physical custody of the raw materials and finished goods inventories is the responsibility of the accounting department.

The production cycle differs from the revenue and expenditure cycles for all the following reasons except

Discuss the three categories of overhead costs in an activity-based costing system.

The expenses associated with disposal of defective products are ________ costs.

Discuss two measures that can address the threats of inefficiencies and quality controls problems.

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters