Exam 11: Strategic Cost Management

JIT manufacturing uses which of the following philosophies of quality control?

Which of the life-cycle viewpoints is the revenue-oriented viewpoint?

Prior to installing a JIT system, Clark Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation.The maintenance costs totaled $400,000 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 $400,000; however, these costs are now traceable to each cell. - The maintenance cost per roll of 6-inch insulation before JIT is installed would be

If JIT manufacturing is used and each manufacturing cell produces a single product, all of the following are considered direct product costs EXCEPT

Rudy Company sells a product for $450 per unit.Its market share is 25 percent.The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390.The product is currently earning a profit of $72 per unit.The president of Rudy Company feels that the $72 profit per unit must be maintained. -What is the target price per unit?

_______________ is the difference between what a customer receives and what the customer gives up.

JIT manufacturing differs from traditional manufacturing in all of the following ways EXCEPT

Prior to installing a JIT system, Clark Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation.The maintenance costs totaled $400,000 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 $400,000; however, these costs are now traceable to each cell. -After installing JIT, the maintenance cost per roll of 9-inch insulation would be

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

Building plants, management structuring, and grouping employees are examples of

Plant layout, quality management systems, and providing capacity are examples of

The industrial value-chain analysis

The ___________________ approach to quality control strives for zero defects.

The last link of the internal value chain is

When a computer manufacturing company addresses supplier production problems, it is focusing on

Figure 11-2 Vibro Company sells a product used in many manufacturing processes.The sales activity involves three activity areas: The following customer information is given: - Refer to Figure 11-2.What is the profitability of customer BY?

Life-cycle cost management consists of

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?

The first link of the internal value chain is

Rudy Company sells a product for $450 per unit.Its market share is 25 percent.The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390.The product is currently earning a profit of $72 per unit.The president of Rudy Company feels that the $72 profit per unit must be maintained. -What is the original cost per unit?