Exam 10: The Production Business Process

Production volume is one way to measure a cost driver.

Software that often includes components to facilitate process planning,line analysis,and statistical process control,among other tasks,is called

CIM affects manufacturing overhead primarily by

In a production planning system,which of the following files updates the finished goods inventory file?

Presented below is a list of terms relating to accounting information systems,followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once. ________ 1.RTGs ________ 2.Job costing ________ 3.Reorder point ________ 4.Economic order quantity (EOQ) ________ 5.Just-in-time production ________ 6.Computer-integrated manufacturing ________ 7.Flexible manufacturing system (FMS) ________ 8.Finite element analysis ________ 9.Job ________ 10.Fixed asset register A.A synonym for production order B.Documents that indicate the sequence of operations required to manufacture a product C.A system in which items are only produced as they are required in subsequent operations D.The order quantity that minimizes total inventory cost. E.A systematic list of assets such as land,buildings,machines,and equipment that is maintained for control purposes F.A CAM system that incorporates programmable production processes that can be quickly reconfigured to produce different types of products G.A mathematical model used to determine mechanical characteristics,such as stresses of structures under load H.Integrates the physical manufacturing system and the manufacturing resource planning (MRP II)systems I.The level of inventory at which it is desirable to order or produce additional items to avoid an out-of-stock condition J.Production costs are assigned to production orders

Bar code is an automatic identification technology that uses low power radio waves to send and receive data between RFID tags and readers.

Which of the following reports specifies production cost variances?

Which of the following is not a common internal accounting control procedure in a property business process?

EAN-13 is a(n)________ coding standard which is a superset of the original 12-digit UPC system.

Detailed material specifications for a product are recorded on a bill-of-materials.

The MRP II systems extends MRP in production order processing by including the creation of transaction files and numerical control tapes for the plant floor.

Activity-based costing calculates a single overhead rate for each different manufacturing activity.

In MRP II,batch size is determined from the production-planning module.

The value of a typical EDI system is that vendor and customer are linked electronically.

________ is a bar coding standard which is a superset of the original 12-digit UPC system.

A manufacturing system's flexibility and speed of response depends largely on the degree to which its components are integrated.Which technology below would effectively integrate the company's system with the systems of its suppliers and customers?

CIM significantly alters a manufacturer's cost behavior patterns by substituting ________ ________ for direct labor.

The term applied overhead refers to the element of direct labor hours or cost used in the CIM environment.

The following production information for the Murray Manufacturing Company has been gathered for part number AB7 (which is used in the manufacture of one of its products): • Murray Manufacturing buys part AB7 from a supplier. • Murray estimates that it will need 5,400 parts this month (which has 30 days). • Each part costs $6.89,and it costs Murray $750 to place an order for part AB7. • It takes 8 days to receive an order of part AB7 from Murray's supplier. • All parts orders are received,inspected,and checked into inventory the same day shipment is received. • Inventory carrying costs are 20% of the inventory value for the month. Required: A.Compute the economic order quantity in units (rounded to the nearest unit)for part AB7. B.Compute the reorder point (rounded to the nearest unit)for part number AB7.

Systems ________ is "mission critical" in quick response manufacturing systems.