Question 1

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. C

Question 2

The production cycle is different than the revenue and expenditure cycles for all the following reasons except

Accepted Answer

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

Question 3

Explain what CIM means and its benefits.

Accepted Answer

CIM is the acronym that stands for computer integrated manufacturing.It incorporates various forms of information technology in the production process such as the use of robots and computer-controlled machinery.The benefit of CIM is that it can significantly reduce production costs.

Question 4

________ identifies costs with the corporation's strategy for production of goods and services.

Accepted Answer

A)  Activity-based costing 
B)  Job-order costing 
C)  Process costing 
D)  Manufacturing costing 
A)  Activity-based costing 
B)  Job-order costing 
C)  Process costing 
D)  Manufacturing costing

Question 5

Push manufacturing is officially 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 6

What is activity-based costing (ABC)? How does it compare with the traditional costing methods? What are the benefits of activity-based costing?

Accepted Answer

Activity-based costing (ABC)traces costs

Question 7

________ are incurred to ensure that products are created without defects the first time.

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 8

The expenses associated with quality assurance activities 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 9

Discuss the role the accountant can play in the production cycle.

Accepted Answer

The accountant can play a role and provi

Question 10

The operations list shows

Accepted Answer

A)  the labor and machine requirements. 
B)  the steps and operations in the production cycle. 
C)  the time expected to complete each step or operation. 
D)  all of the above 
A)  the labor and machine requirements. 
B)  the steps and operations in the production cycle. 
C)  the time expected to complete each step or operation. 
D)  all of the above

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

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using ________ but an AIS enhancement is to use ________ to record and track direct labor costs.

Accepted Answer

A)  job-time tickets; coded identification cards 
B)  move tickets; coded identification cards 
C)  employee earnings records; job-time tickets 
D)  time cards; electronic time entry terminals 
A)  job-time tickets; coded identification cards 
B)  move tickets; coded identification cards 
C)  employee earnings records; job-time tickets 
D)  time cards; electronic time entry terminals

Question 13

In activity-based costing,the expenses associated with planning and design of new products are ________ overhead.

Accepted Answer

A)  batch-related 
B)  product-related 
C)  companywide 
D)  expenditure-based 
A)  batch-related 
B)  product-related 
C)  companywide 
D)  expenditure-based

Question 14

The document that authorizes the transfer of raw materials from the storeroom to the production floor is referred to as

Accepted Answer

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

Question 15

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

Accepted Answer

Threat 1: Unauthorized transactions Cont

Question 16

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 17

What is the primary drawback to using a volume-driven base,such as direct labor or machine hours,to apply overhead to products in a traditional cost accounting system?

Accepted Answer

A)  The cost accountant may not fully understand how to track direct labor or machine hours. 
B)  It is difficult for an AIS to incorporate such a measurement into its system. 
C)  It is difficult for an ERP to incorporate such a measurement into its integrated system. 
D)  Many overhead costs are incorrectly allocated to products since they do not vary with production volume. 
A)  The cost accountant may not fully understand how to track direct labor or machine hours. 
B)  It is difficult for an AIS to incorporate such a measurement into its system. 
C)  It is difficult for an ERP to incorporate such a measurement into its integrated system. 
D)  Many overhead costs are incorrectly allocated to products since they do not vary with production volume.

Question 18

The production cycle document that specifies the quantity of each product to be produced and when production should begin is the

Accepted Answer

A)  bill of materials. 
B)  bill of lading. 
C)  master production schedule. 
D)  operations list. 
A)  bill of materials. 
B)  bill of lading. 
C)  master production schedule. 
D)  operations list.

Question 19

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 20

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

Exam 14: The Production Cycle

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

The production cycle is different than the revenue and expenditure cycles for all the following reasons except

Explain what CIM means and its benefits.

________ identifies costs with the corporation's strategy for production of goods and services.

Push manufacturing is officially known as

What is activity-based costing (ABC)? How does it compare with the traditional costing methods? What are the benefits of activity-based costing?

________ are incurred to ensure that products are created without defects the first time.

The expenses associated with quality assurance activities are ________ costs.

Discuss the role the accountant can play in the production cycle.

The operations list shows

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?

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using ________ but an AIS enhancement is to use ________ to record and track direct labor costs.

In activity-based costing,the expenses associated with planning and design of new products are ________ overhead.

The document that authorizes the transfer of raw materials from the storeroom to the production floor is referred to as

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

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

What is the primary drawback to using a volume-driven base,such as direct labor or machine hours,to apply overhead to products in a traditional cost accounting system?

The production cycle document that specifies the quantity of each product to be produced and when production should begin is the

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?

The expenses associated with a product recall are ________ costs.

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using but an AIS enhancement is to use to record and track direct labor costs.