Question 1

JIT manufacturing
Briefly explain the nature and goals of a JIT manufacturing system.

Accepted Answer

In a JIT system,materials are acquired a

Question 2

Quality costs do not include:

Accepted Answer

A) Costs to prevent poor quality from occurring. 
B) Costs of appraising and inspecting the product. 
C) Costs to correct problems before the customer receives the goods. 
D) Advertising costs. 
A) Costs to prevent poor quality from occurring. 
B) Costs of appraising and inspecting the product. 
C) Costs to correct problems before the customer receives the goods. 
D) Advertising costs.

Question 3

Cycle time includes:

Accepted Answer

A) Processing time,storage and waiting time,movement time,and inspection time. 
B) Processing time,inspection time,and inventory time. 
C) Processing time,storage and waiting time,finishing time,and selling time. 
D) Processing time,storage and waiting time,movement time,and finishing time. 
A) Processing time,storage and waiting time,movement time,and inspection time. 
B) Processing time,inspection time,and inventory time. 
C) Processing time,storage and waiting time,finishing time,and selling time. 
D) Processing time,storage and waiting time,movement time,and finishing time.

Question 4

A quality cost report would be comprised of prevention costs only.

Accepted Answer

A) True 
 B)False

Question 5

To arrive at a target cost,the target selling price and a satisfactory profit margin are added together.

Accepted Answer

A) True 
 B)False

Question 6

Just-in-time inventory systems are characterized by extremely large inventories of materials,work in process,and finished goods.

Accepted Answer

A) True 
 B)False

Question 7

The manufacturing efficiency ratio equals:

Accepted Answer

A) Value-added time divided by cycle time. 
B) Value-added time multiplied by cycle time. 
C) Cycle time divided by value-added time. 
D) (Cycle time divided by value-added time)divided by 2. 
A) Value-added time divided by cycle time. 
B) Value-added time multiplied by cycle time. 
C) Cycle time divided by value-added time. 
D) (Cycle time divided by value-added time)divided by 2.

Question 8

The just-in-time manufacturing system:

Accepted Answer

A) Contrasts with the supply push systems. 
B) Complements the supply push systems. 
C) Neither complements nor contrasts with the supply push systems. 
D) Contrasts the demand pull system. 
A) Contrasts with the supply push systems. 
B) Complements the supply push systems. 
C) Neither complements nor contrasts with the supply push systems. 
D) Contrasts the demand pull system.

Question 9

The primary objective of activity-based management is:

Accepted Answer

A) To develop more accurate product costs. 
B) To reduce and eliminate non-value added activities. 
C) To increase product quality. 
D) To identify instances of internal failure. 
A) To develop more accurate product costs. 
B) To reduce and eliminate non-value added activities. 
C) To increase product quality. 
D) To identify instances of internal failure.

Question 10

Cost of quality
Name four components of the cost of quality and list three examples of each.

Accepted Answer

The answer of Cost of quality
Name four components of the...

Question 11

Which of the following is not a prevention cost?

Accepted Answer

A) Training costs. 
B) Warranty costs. 
C) Maintenance costs. 
D) Quality planning costs. 
A) Training costs. 
B) Warranty costs. 
C) Maintenance costs. 
D) Quality planning costs.

Question 12

Components of the total cost of quality
Explain how it is possible to reduce the total cost of quality by increasing the amount spent on prevention and appraisal activities.

Accepted Answer

Investments in appraisal and prevention

Question 13

Which of the following is not an example of the cost of quality?

Accepted Answer

A) Prevention costs. 
B) Internal failure costs. 
C) Target costs. 
D) Appraisal costs. 
A) Prevention costs. 
B) Internal failure costs. 
C) Target costs. 
D) Appraisal costs.

Question 14

The process of using activity-based costing to help reduce and eliminate non-value-added activities is activity-based management.

Accepted Answer

A) True 
 B)False

Question 15

Activities related to internal failure such as rework,scrap,and engineering change orders are value-added activities since they cannot be eliminated without increasing costs elsewhere in the value chain.

Accepted Answer

A) True 
 B)False

Question 16

Techniques to manage costs in the value chain include all of the following except:

Accepted Answer

A) Activity based management. 
B) Target costing. 
C) Process costing. 
D) Total quality management. 
A) Activity based management. 
B) Target costing. 
C) Process costing. 
D) Total quality management.

Question 17

Which of the following is not one of the basic procedures related to activity-based costing?

Accepted Answer

A) Identify the activity. 
B) Create an associated activity cost pool. 
C) Compute internal failure costs. 
D) Calculate the cost per unit of activity. 
A) Identify the activity. 
B) Create an associated activity cost pool. 
C) Compute internal failure costs. 
D) Calculate the cost per unit of activity.

Question 18

Target costing
Ray-Dee,Inc.is considering the introduction of a new deluxe quality stereo tabletop radio.This radio will produce exceptional sound quality through new speaker technology.Market research indicates that customers would be willing to pay $400 for a radio of the quality considered.Ray-Dee requires a 30% return on sales for all its products.
Required: Compute Ray-Dee's target cost for the radio under consideration.

Accepted Answer

The answer of Target costing
Ray-Dee,Inc.is considering the introduction of a...

Question 19

International Financial Reporting Standards (IFRS)require companies to expense costs associated with R&D activities.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following activities performed by a manufacturer of roller blades is a value-added activity?

Accepted Answer

A) Designs that meet engineering specifications,but not customer needs. 
B) Poor quality supplier deliveries. 
C) Delayed distribution to a customer. 
D) Clear and truthful marketing. 
A) Designs that meet engineering specifications,but not customer needs. 
B) Poor quality supplier deliveries. 
C) Delayed distribution to a customer. 
D) Clear and truthful marketing.

Exam 19: Costing and the Value Chain

JIT manufacturing Briefly explain the nature and goals of a JIT manufacturing system.

Quality costs do not include:

Cycle time includes:

A quality cost report would be comprised of prevention costs only.

To arrive at a target cost,the target selling price and a satisfactory profit margin are added together.

Just-in-time inventory systems are characterized by extremely large inventories of materials,work in process,and finished goods.

The manufacturing efficiency ratio equals:

The just-in-time manufacturing system:

The primary objective of activity-based management is:

Cost of quality Name four components of the cost of quality and list three examples of each.

Which of the following is not a prevention cost?

Components of the total cost of quality Explain how it is possible to reduce the total cost of quality by increasing the amount spent on prevention and appraisal activities.

Which of the following is not an example of the cost of quality?

The process of using activity-based costing to help reduce and eliminate non-value-added activities is activity-based management.

Activities related to internal failure such as rework,scrap,and engineering change orders are value-added activities since they cannot be eliminated without increasing costs elsewhere in the value chain.

Techniques to manage costs in the value chain include all of the following except:

Which of the following is not one of the basic procedures related to activity-based costing?

International Financial Reporting Standards (IFRS)require companies to expense costs associated with R&D activities.

Which of the following activities performed by a manufacturer of roller blades is a value-added activity?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

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