Question 1

Traditional manufacturing emphasizes all of the following except

Accepted Answer

A) team oriented employee involvement 
B) process-oriented layout 
C) push manufacturing 
D) cost accumulation by department 
A) team oriented employee involvement 
B) process-oriented layout 
C) push manufacturing 
D) cost accumulation by department

Question 2

A college would like to increase enrollment by streamlining the enrollment process.Which of the following would not fall in line with the college goal?

Accepted Answer

A) Reduce the requirements necessary to enroll. 
B) Relocate counselors, academic advisors, and financial aid specialists for a major to a central location. 
C) Cross-train counselors, academic advisors, and financial aid specialists. 
D) All of these choices would fall in line with the college goal. 
A) Reduce the requirements necessary to enroll. 
B) Relocate counselors, academic advisors, and financial aid specialists for a major to a central location. 
C) Cross-train counselors, academic advisors, and financial aid specialists. 
D) All of these choices would fall in line with the college goal.

Question 3

Prevention costs and appraisal costs are considered costs of controlling quality.

Accepted Answer

A) True 
 B)False

Question 4

Reducing wait time is directly linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 5

From the above schedule, compute the percentage of non-value-added activities.

Accepted Answer

Non-Value-Added Cost

Question 6

Peters Manufacturing Co.operates in a lean manufacturing environment.The company had scheduled production of 95,000 units during February in its Y12 cell.Actual February production totaled 88,200 units.Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000.
Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

Accepted Answer

Budgeted cell conversion cost

Question 7

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Accepted Answer

A) True 
 B)False

Question 8

All lead times are considered to be value-added lead time.

Accepted Answer

A) True 
 B)False

Question 9

Extreme Wreaths, Inc.makes wreaths in batch sizes of 15 at a time.The cutting & assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
In a effort to improve the lead time, the company has tried reducing the batch size to 10 units.The new process is as follows: cutting & assembly process - 8 minutes.The decorating process is still 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.
a Compute the value-added, non-value-added, and the total lead time of the wreath process for both the old and the new manufacturing process.
b Compute the value-added ratio for both the old and new process.Round to the nearest decimal.

Accepted Answer

a Old:
 @#IMG-DLM& New:
 @#IMG-DLM& b Value-added

Question 10

From the above schedule of activity costs, determine the external failure costs.

Accepted Answer

A) $39,000 
B) $19,000 
C) $12,000 
D) $31,000 
A) $39,000 
B) $19,000 
C) $12,000 
D) $31,000

Question 11

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of value-added time?

Accepted Answer

A) Processing time 
B) Wait time during inspection 
C) Wait time in inventory 
D) Both B and C 
A) Processing time 
B) Wait time during inspection 
C) Wait time in inventory 
D) Both B and C

Question 13

In a lean environment, process problems are less visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 14

From the above schedule of activity costs, determine the appraisal costs.

Accepted Answer

A) $50,000 
B) $23,000 
C) $73,000 
D) $104,000 
A) $50,000 
B) $23,000 
C) $73,000 
D) $104,000

Question 15

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 16

Make-to-order companies produce mainly to stock inventory.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following drives work-in-process inventory levels higher?

Accepted Answer

A) Machine breakdowns 
B) Production rate losses 
C) Rework processes 
D) All of the above 
A) Machine breakdowns 
B) Production rate losses 
C) Rework processes 
D) All of the above

Question 18

Which of the following is not an external failure cost?

Accepted Answer

A) warranty work 
B) processing returned merchandise 
C) rework 
D) correcting invoice errors 
A) warranty work 
B) processing returned merchandise 
C) rework 
D) correcting invoice errors

Question 19

Identity the following by their type of quality cost.
-Testing

Accepted Answer

A) Preventive costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs 
A) Preventive costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs

Question 20

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Accepted Answer

A) True 
 B)False

Traditional manufacturing emphasizes all of the following except

A college would like to increase enrollment by streamlining the enrollment process.Which of the following would not fall in line with the college goal?

Prevention costs and appraisal costs are considered costs of controlling quality.

Reducing wait time is directly linked to reducing inventory.

From the above schedule, compute the percentage of non-value-added activities.

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

All lead times are considered to be value-added lead time.

From the above schedule of activity costs, determine the external failure costs.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Which of the following is an example of value-added time?

In a lean environment, process problems are less visible than they are in a traditional environment.

From the above schedule of activity costs, determine the appraisal costs.

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Make-to-order companies produce mainly to stock inventory.

Which of the following drives work-in-process inventory levels higher?

Which of the following is not an external failure cost?

Identity the following by their type of quality cost. -Testing

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Statement of Cash Flows

Financial Statement Analysis

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Exam 12: Lean Principles, Lean Accounting, and Activity Analysis

Traditional manufacturing emphasizes all of the following except

A college would like to increase enrollment by streamlining the enrollment process.Which of the following would not fall in line with the college goal?

Prevention costs and appraisal costs are considered costs of controlling quality.

Reducing wait time is directly linked to reducing inventory.

From the above schedule, compute the percentage of non-value-added activities.

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

All lead times are considered to be value-added lead time.

From the above schedule of activity costs, determine the external failure costs.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Which of the following is an example of value-added time?

In a lean environment, process problems are less visible than they are in a traditional environment.

From the above schedule of activity costs, determine the appraisal costs.

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Make-to-order companies produce mainly to stock inventory.

Which of the following drives work-in-process inventory levels higher?

Which of the following is not an external failure cost?

Identity the following by their type of quality cost. -Testing

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Statement of Cash Flows

Financial Statement Analysis

Filters