Question 1

Which of the following is best suited to providing timely and focused performance information?

Accepted Answer

A)  non-financial information 
B)  financial accounting information 
C)  cost accounting information 
D)  variance analysis 
A)  non-financial information 
B)  financial accounting information 
C)  cost accounting information 
D)  variance analysis

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 the above 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 the above would fall in line with the college goal.

Question 3

Schedule of Activity Costs   From the above schedule of activity costs, determine the non-value-added costs.

Accepted Answer

A)  $30,000 
B)  $50,000 
C)  $64,000 
D)  $85,000 
A)  $30,000 
B)  $50,000 
C)  $64,000 
D)  $85,000

Question 4

Lead time is the process time between start and completion.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following results in fewer transactions in just-in-time 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 6

A quality control activity analysis indicated the following four activity costs of a hotel.
   Sales are $750,000 for the year. Prepare a cost of quality report.

Accepted Answer

The answer of A quality control activity analysis indicated the...

Question 7

Reducing wait time is not linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 8

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

Accepted Answer

A) True 
 B)False

Question 9

____ manufacturing philosophy emphasizes quality and zero defects.

Accepted Answer

A)  Traditional 
B)  Just-In-Time 
C)  Zero-Based 
D)  Strategic 
A)  Traditional 
B)  Just-In-Time 
C)  Zero-Based 
D)  Strategic

Question 10

In a just-in-time (JIT) 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 11

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

A) True 
 B)False

Question 12

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

Accepted Answer

A) True 
 B)False

Question 13

What do just-in-time (JIT) manufacturers demand from their vendors?

Accepted Answer

A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above 
A)  High quality materials 
B)  Low cost materials 
C)  On-time deliveries 
D)  All of the above

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements best describes the relationship among the costs of quality?

Accepted Answer

A)  Spending more on prevention and appraisal costs will reduce the total overall costs of quality. 
B)  Spending more on prevention and appraisal costs will increase the total overall costs of quality. 
C)  Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. 
D)  The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs. 
A)  Spending more on prevention and appraisal costs will reduce the total overall costs of quality. 
B)  Spending more on prevention and appraisal costs will increase the total overall costs of quality. 
C)  Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. 
D)  The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs.

Question 16

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

Accepted Answer

A)  a debit to Work in Process Inventory 
B)  a debit to Raw Materials Inventory 
C)  a credit to Raw and In Process Inventory 
D)  a debit to Raw and In Process Inventory 
A)  a debit to Work in Process Inventory 
B)  a debit to Raw Materials Inventory 
C)  a credit to Raw and In Process Inventory 
D)  a debit to Raw and In Process Inventory

Question 17

Long setups and large batch sizes result in smaller inventories.

Accepted Answer

A) True 
 B)False

Question 18

Large batch sizes increase lead time.

Accepted Answer

A) True 
 B)False

Question 19

Costs of failing to control quality include prevention costs and external failure costs.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 27: Cost Management for Just-In-Time Environments

Which of the following is best suited to providing timely and focused performance information?

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?

Schedule of Activity Costs From the above schedule of activity costs, determine the non-value-added costs.

Lead time is the process time between start and completion.

Which of the following results in fewer transactions in just-in-time accounting?

A quality control activity analysis indicated the following four activity costs of a hotel. Sales are $750,000 for the year. Prepare a cost of quality report.

Reducing wait time is not linked to reducing inventory.

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

____ manufacturing philosophy emphasizes quality and zero defects.

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

What do just-in-time (JIT) manufacturers demand from their vendors?

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

Which of the following statements best describes the relationship among the costs of quality?

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

Long setups and large batch sizes result in smaller inventories.

Large batch sizes increase lead time.

Costs of failing to control quality include prevention costs and external failure costs.

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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 and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

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