Question 1

A firm that has implemented JIT had the following transactions:   What will be the entry to record material purchases using the traditional approach?

Accepted Answer

A)  Materials and In Process Inventory 40,000 Accounts Payable 40,000 
B)  Materials Inventory 40,000 Accounts Payable 40,000 
C)  Accounts Payable 40,000 Materials and In Process Inventory 40,000 
D)  Accounts Payable 40,000 Materials Inventory 40,000 
A)  Materials and In Process Inventory 40,000 Accounts Payable 40,000 
B)  Materials Inventory 40,000 Accounts Payable 40,000 
C)  Accounts Payable 40,000 Materials and In Process Inventory 40,000 
D)  Accounts Payable 40,000 Materials Inventory 40,000

Question 2

__________ analysis relies on identifying and exploiting internal and external linkages.
or

Accepted Answer

Value-chai

Question 3

Acceptable quality level (AQL) allows defects to occur within predetermined parameters.

Accepted Answer

A) True 
 B)False

Question 4

Figure 11-1 Ambrosia Corp. is a manufacturer of equipment used in manufacturing. It currently produces a product with 30 parts but through redesign has reduced the number of parts to 9. Then current activity capacity and demand for the 30 unit configuration and expected activity demand for the 9 part configuration are provided below:
  Materials usage has a rate of $6 per part and no fixed costs. Assembly has a rate of $20 per labor hour with no fixed component. Purchasing requires clerks that can process 5,000 purchase orders. Each clerk earns $40,000 per year. There is also a $1 per order processing cost.
Refer to Figure 11-1. What is the savings in materials usage cost with the new design changes?

Accepted Answer

A)  $252,000 
B)  $480,000 
C)  $1,260,000 
D)  $1,800,000 
A)  $252,000 
B)  $480,000 
C)  $1,260,000 
D)  $1,800,000

Question 5

A firm that has implemented JIT had the following transactions:   What will be the entry to record material placed into production using the traditional approach?

Accepted Answer

A)  Materials and In Process Inventory 40,000 Work-in-process Inventory 40,000 
B)  Materials Inventory 40,000 Accounts Payable 40,000 
C)  Work-in-Process Inventory 40,000 Materials and In Process Inventory 40,000 
D)  Work-in-Process Inventory 40,000 Materials Inventory 40,000 
A)  Materials and In Process Inventory 40,000 Work-in-process Inventory 40,000 
B)  Materials Inventory 40,000 Accounts Payable 40,000 
C)  Work-in-Process Inventory 40,000 Materials and In Process Inventory 40,000 
D)  Work-in-Process Inventory 40,000 Materials Inventory 40,000

Question 6

Prior to installing a JIT system, PVCTec Company used machine hours to assign maintenance costs to its three products of 9-inch, 11-inch, and 13-inch plastic pipe.
The maintenance costs totaled $540,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:
   After installing JIT, three manufacturing cells were created, and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $540,000; however, these costs are now traceable to each cell.
   Required:

Accepted Answer

The answer of Prior to installing a JIT system, PVCTec...

Question 7

Clinton Corp. is a manufacturer of equipment used in motorcycles production. It currently produces a product with 15 parts but through redesign has reduced the number of parts to 5. Then current activity capacity and demand for the 15 part configuration and expected activity demand for the 5 part configuration are provided below:
   Materials usage has a rate of $4 per part and no fixed costs. Assembly has a rate of $15 per labor our with no fixed component. Purchasing requires clerks that can process 5000 purchase orders. Each clerk earns $35,000 per year. There is also a $2 per order processing cost. The product sells for $45 and 50,000 units will be produced.
Required:
1. What is the total cost savings from the new design?
2. What is the new sales price if the cost savings are passed on to the customer?

Accepted Answer

M (300,000 - 100,000) $4 = $ 8

Question 8

Which of the following is NOT a stage of the consumable life-cycle viewpoint?

Accepted Answer

A)  disposal 
B)  maintaining 
C)  logistics 
D)  purchasing 
A)  disposal 
B)  maintaining 
C)  logistics 
D)  purchasing

Question 9

Which of the following manufacturing costs is assigned to products in a traditional environment using direct tracing?

Accepted Answer

A)  supervision 
B)  materials 
C)  repairs and maintenance 
D)  energy 
A)  supervision 
B)  materials 
C)  repairs and maintenance 
D)  energy

Question 10

The operational activity of inspecting is classified as a

Accepted Answer

A)  unit-level activity. 
B)  batch-level activity. 
C)  product-level activity. 
D)  facility-level activity. 
A)  unit-level activity. 
B)  batch-level activity. 
C)  product-level activity. 
D)  facility-level activity.

Question 11

Activities required to design, develop, produce, market, distribute, and service a product are known as

Accepted Answer

A)  whole life activities. 
B)  value-chain activities. 
C)  target activities. 
D)  overhead. 
A)  whole life activities. 
B)  value-chain activities. 
C)  target activities. 
D)  overhead.

A firm that has implemented JIT had the following transactions: What will be the entry to record material purchases using the traditional approach?

__________ analysis relies on identifying and exploiting internal and external linkages. or

Acceptable quality level (AQL) allows defects to occur within predetermined parameters.

A firm that has implemented JIT had the following transactions: What will be the entry to record material placed into production using the traditional approach?

Which of the following is NOT a stage of the consumable life-cycle viewpoint?

Which of the following manufacturing costs is assigned to products in a traditional environment using direct tracing?

The operational activity of inspecting is classified as a

Activities required to design, develop, produce, market, distribute, and service a product are known as

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 11: Strategic Cost Management

A firm that has implemented JIT had the following transactions: What will be the entry to record material purchases using the traditional approach?

__________ analysis relies on identifying and exploiting internal and external linkages. or

Acceptable quality level (AQL) allows defects to occur within predetermined parameters.

A firm that has implemented JIT had the following transactions: What will be the entry to record material placed into production using the traditional approach?

Which of the following is NOT a stage of the consumable life-cycle viewpoint?

Which of the following manufacturing costs is assigned to products in a traditional environment using direct tracing?

The operational activity of inspecting is classified as a

Activities required to design, develop, produce, market, distribute, and service a product are known as

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters