Exam 26: Lean Manufacturing and Activity Analysis

Which of the following is characteristic of the traditional cost system?

A make-to-order company matches its production schedules to actual customer orders.

In a lean environment,the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

In the lean principles philosophy,unexpected downtime is the result of unreliable processes.

Kilbuck Manufacturing operates in a lean manufacturing environment.Kilbuck's actual conversion costs for the month of May follow: The journal entry to record May's conversion costs will include:

In a lean system,there are fewer transactions to record than there are in a traditional system.

Lean manufacturing favors organizing work around processes rather than around products.

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

In a lean environment,operations only respond to customer orders.

Which of the following is not a prevention cost?

Reducing wait time is not linked to reducing inventory.

Lean manufacturing favors organizing work around products rather than around processes.

From the foregoing information,determine the production costs transferred to Cost of Goods Sold during August.

Examples of transforming a traditional manufacturing environment to a lean environment is to do all of the following except

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

From the above schedule of activity costs,determine the value-added costs.

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

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

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

Which of the following is not an external failure cost?