Question 1

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 2

Clint Smith operates a machine shop in Burbank,California.He places bids on small lot production projects submitted by firms throughout the Los Angeles area.Which of the following is most likely to be a cost driver for the allocation of utility costs?

Accepted Answer

A)  Number of units produced 
B)  Number of labor hours 
C)  Number of projects completed 
D)  Sales revenue 
A)  Number of units produced 
B)  Number of labor hours 
C)  Number of projects completed 
D)  Sales revenue

Question 3

For replacement of inventories and assets destroyed by fire or other disasters,an organization needs

Accepted Answer

A)  stand-by facilities. 
B)  adequate insurance coverage. 
C)  source data automation. 
D)  All of the above are correct. 
A)  stand-by facilities. 
B)  adequate insurance coverage. 
C)  source data automation. 
D)  All of the above are correct.

Question 4

Pull 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 5

______ is an efficient way to track and process information about raw materials used in production.

Accepted Answer

A)  A just-in-time inventory system 
B)  Identifying materials with bar codes or RFID tags 
C)  A materials resources planning inventory system 
D)  Job-order costing 
A)  A just-in-time inventory system 
B)  Identifying materials with bar codes or RFID tags 
C)  A materials resources planning inventory system 
D)  Job-order costing

Question 6

Identify and discuss the two documents that are the result of product design activities.

Accepted Answer

The two documents that are the result of

Question 7

How many side panels should the company budget for use in week two?
Bill of Materials

Accepted Answer

600 (2 per finished

Question 8

Which objective listed below is not a cost accounting objective for the production cycle?

Accepted Answer

A)  provide information for planning, controlling, and evaluating the performance of production operations 
B)  provide cost data about products used in pricing and product mix decisions 
C)  collect and process the information used to calculate inventory and cost of goods sold amounts that appear in the financial statements 
D)  provide tests of audit control functions as part of the AIS 
A)  provide information for planning, controlling, and evaluating the performance of production operations 
B)  provide cost data about products used in pricing and product mix decisions 
C)  collect and process the information used to calculate inventory and cost of goods sold amounts that appear in the financial statements 
D)  provide tests of audit control functions as part of the AIS

Question 9

Wee Bee Trucking determines the cost per delivery by averaging total cost over number of deliveries.This is an example of ________ costing.

Accepted Answer

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

Question 10

In addition to identifying and dealing with defective products before they reach customers,quality management is concerned with initiating process changes that will reduce the number of defective units produced.All other things held constant,a decrease in the number of defective units will increase throughput by

Accepted Answer

A)  increasing productive capacity. 
B)  increasing productive processing time. 
C)  increasing yield. 
D)  increasing all components of throughput. 
A)  increasing productive capacity. 
B)  increasing productive processing time. 
C)  increasing yield. 
D)  increasing all components of throughput.

Question 11

Identify and discuss the two common methods of production planning.

Accepted Answer

The two common methods of production pla

Question 12

Dolly Salem owns and operates a bakery in Charleston,South Carolina.Each afternoon,she prepares a shopping list that describes the quantity and variety of ingredients that she will purchase in the evening from a local food wholesaler.The shopping list is an example of a(an)

Accepted Answer

A)  bill of materials. 
B)  operations list. 
C)  production order. 
D)  materials requisition. 
A)  bill of materials. 
B)  operations list. 
C)  production order. 
D)  materials requisition.

Question 13

Wee Bee Trucking determines the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.This is an example of ________ costing.

Accepted Answer

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

Question 14

Folding Squid Technologies initiated a just-in-time inventory system in 2010.Now the production manager,Chan Ziaou,wants to apply the same principles to the entire production process.His recommendation is for the company adopt a

Accepted Answer

A)  lean manufacturing system. 
B)  master production scheduling system. 
C)  manufacturing resource planning system. 
D)  computer-integrated manufacturing system. 
A)  lean manufacturing system. 
B)  master production scheduling system. 
C)  manufacturing resource planning system. 
D)  computer-integrated manufacturing system.

Question 15

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 16

The use of various forms of information technology in the production process is referred to as

Accepted Answer

A)  computerized investments and machines. 
B)  computerized integration of machines. 
C)  computer-integrated manufacturing. 
D)  computer intense manufacturing. 
A)  computerized investments and machines. 
B)  computerized integration of machines. 
C)  computer-integrated manufacturing. 
D)  computer intense manufacturing.

Question 17

An MRP inventory system reduces inventory levels by

Accepted Answer

A)  reducing the uncertainty about when materials are needed. 
B)  computing exact costs of purchasing and carrying inventory. 
C)  delivering materials to the production floor exactly when needed and in exact quantities. 
D)  none of the above 
A)  reducing the uncertainty about when materials are needed. 
B)  computing exact costs of purchasing and carrying inventory. 
C)  delivering materials to the production floor exactly when needed and in exact quantities. 
D)  none of the above

Question 18

Dolly Salem owns and operates a bakery in Charleston,South Carolina.She maintains a file of recipes that list the ingredients used to make her famous cakes and cookies.These recipes are examples of a(an)

Accepted Answer

A)  bill of materials. 
B)  operations list. 
C)  production order. 
D)  materials requisition. 
A)  bill of materials. 
B)  operations list. 
C)  production order. 
D)  materials requisition.

Question 19

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

Question 20

Discuss the criticisms of traditional cost accounting methods.

Accepted Answer

There can be an inappropriate allocation

Exam 14: The Production Cycle

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

Clint Smith operates a machine shop in Burbank,California.He places bids on small lot production projects submitted by firms throughout the Los Angeles area.Which of the following is most likely to be a cost driver for the allocation of utility costs?

For replacement of inventories and assets destroyed by fire or other disasters,an organization needs

Pull manufacturing is officially known as

______ is an efficient way to track and process information about raw materials used in production.

Identify and discuss the two documents that are the result of product design activities.

How many side panels should the company budget for use in week two? Bill of Materials

Which objective listed below is not a cost accounting objective for the production cycle?

Wee Bee Trucking determines the cost per delivery by averaging total cost over number of deliveries.This is an example of ________ costing.

Identify and discuss the two common methods of production planning.

Dolly Salem owns and operates a bakery in Charleston,South Carolina.Each afternoon,she prepares a shopping list that describes the quantity and variety of ingredients that she will purchase in the evening from a local food wholesaler.The shopping list is an example of a(an)

Wee Bee Trucking determines the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.This is an example of ________ costing.

Folding Squid Technologies initiated a just-in-time inventory system in 2010.Now the production manager,Chan Ziaou,wants to apply the same principles to the entire production process.His recommendation is for the company adopt a

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

The use of various forms of information technology in the production process is referred to as

An MRP inventory system reduces inventory levels by

Dolly Salem owns and operates a bakery in Charleston,South Carolina.She maintains a file of recipes that list the ingredients used to make her famous cakes and cookies.These recipes are examples of a(an)

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

Discuss the criticisms of traditional cost accounting methods.

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

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