Question 1

A setup is the time required to prepare an operation for a new production run.

Accepted Answer

A) True 
 B)False

Question 2

Large batch sizes increase lead time.

Accepted Answer

A) True 
 B)False

Question 3

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes,weather,etc.than when using the traditional philosophy.

Accepted Answer

A) True 
 B)False

Question 4

Lean manufacturing philosophy reduces all of the following except

Accepted Answer

A)  inventory 
B)  setup time 
C)  lead time 
D)  conversion costs 
A)  inventory 
B)  setup time 
C)  lead time 
D)  conversion costs

Question 5

Which of the following is an example of a nonfinancial measure?

Accepted Answer

A)  lead time 
B)  setup time 
C)  units scrapped 
D)  all of the above 
A)  lead time 
B)  setup time 
C)  units scrapped 
D)  all of the above

Question 6

Make-to-order companies typically produce in small batch sizes.

Accepted Answer

A) True 
 B)False

Question 7

How are the objectives of lean manufacturing achieved?

Accepted Answer

A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above 
A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above

Question 8

In a push manufacturing system,raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 9

In a lean system,the work in process and raw materials inventory accounts are combined.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  inventories are maintained at higher levels. 
B)  process problems cause production to shut down immediately. 
C)  the push manufacturing system leads to increased inventory level. 
D)  the lack of work in process inventory creates problems. 
A)  inventories are maintained at higher levels. 
B)  process problems cause production to shut down immediately. 
C)  the push manufacturing system leads to increased inventory level. 
D)  the lack of work in process inventory creates problems.

Question 11

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 12

In a push manufacturing system,raw materials are released to production based on actual customer orders.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Inventory reduction is a ____ principle.

Accepted Answer

A)  lean 
B)  traditional processing 
C)  economic 
D)  wait time 
A)  lean 
B)  traditional processing 
C)  economic 
D)  wait time

Question 15

____ manufacturing philosophy emphasizes quality and zero defects.

Accepted Answer

A)  Traditional 
B)  Lean 
C)  Zero-Based 
D)  Chinese 
A)  Traditional 
B)  Lean 
C)  Zero-Based 
D)  Chinese

Question 16

Which of the following results in fewer transactions in lean accounting?

Accepted Answer

A)  all manufacturing costs are combined in one account called Raw and In Process Inventory. 
B)  the distinction between direct and indirect costs is eliminated. 
C)  there is less movement of inventory between departments. 
D)  All of the above. 
A)  all manufacturing costs are combined in one account called Raw and In Process Inventory. 
B)  the distinction between direct and indirect costs is eliminated. 
C)  there is less movement of inventory between departments. 
D)  All of the above.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Push manufacturing is also referred to as make-to-order processing.

Accepted Answer

A) True 
 B)False

Question 19

The lean philosophy views inventory as a necessary buffer to protect against process problems.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 26: Lean Manufacturing and Activity Analysis

A setup is the time required to prepare an operation for a new production run.

Large batch sizes increase lead time.

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes,weather,etc.than when using the traditional philosophy.

Lean manufacturing philosophy reduces all of the following except

Which of the following is an example of a nonfinancial measure?

Make-to-order companies typically produce in small batch sizes.

How are the objectives of lean manufacturing achieved?

In a push manufacturing system,raw materials are released to production based on forecasted demand.

In a lean system,the work in process and raw materials inventory accounts are combined.

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

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

In a push manufacturing system,raw materials are released to production based on actual customer orders.

Traditional manufacturing emphasizes all of the following except

Inventory reduction is a ____ principle.

____ manufacturing philosophy emphasizes quality and zero defects.

Which of the following results in fewer transactions in lean accounting?

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

Push manufacturing is also referred to as make-to-order processing.

The lean philosophy views inventory as a necessary buffer to protect against process problems.

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters