Question 1

The following dates apply to a specific order processed by Hamilton Ltd:  
What is the production lead time?

Accepted Answer

A)  4 days 
B)  7 days 
C)  10 days 
D)  11 days 
A)  4 days 
B)  7 days 
C)  10 days 
D)  11 days

Question 2

Which of the following are performance measures used by firms to assess their own performance in relation to suppliers?
i. Percentage of orders processed by electronic means
ii. Number of expedited orders
iii. Response time to customer queries
iv. Reduction in the number of suppliers

Accepted Answer

A)  i, ii and iii 
B)  ii, iii and iv 
C)  i, ii and iv 
D)  All of the given answers 
A)  i, ii and iii 
B)  ii, iii and iv 
C)  i, ii and iv 
D)  All of the given answers

Question 3

When calculating customer costs there are three levels of costs that must be considered―market level activities, customer level activities and order level activities.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following terms relate to e-commerce?
i. B2B
ii. C2B
iii. B2C
iv. EDI

Accepted Answer

A)  i, ii and iii 
B)  ii, iii and iv 
C)  i, ii and iv 
D)  i, iii and iv 
A)  i, ii and iii 
B)  ii, iii and iv 
C)  i, ii and iv 
D)  i, iii and iv

Question 5

Which of the following statements regarding backflush costing is false?

Accepted Answer

A)  Backflush costing is simpler and less expensive than traditional product costing. 
B)  Backflush costing provides more-detailed information than a job order costing system. 
C)  When using backflush costing, a cost-benefit decision needs to be made. 
D)  It is only likely to be used in an environment where production-related inventories are kept low. 
A)  Backflush costing is simpler and less expensive than traditional product costing. 
B)  Backflush costing provides more-detailed information than a job order costing system. 
C)  When using backflush costing, a cost-benefit decision needs to be made. 
D)  It is only likely to be used in an environment where production-related inventories are kept low.

Question 6

Select the best answer. Backflush costing is appropriate when:

Accepted Answer

A)  both just-in-time (JIT) and activity-based costing (AB
C)  have been implemented. 
B)  JIT purchasing has been implemented. 
C)  both JIT production and JIT purchasing have been implemented. 
D)  reduced set-up times have resulted from JIT's introduction. 
A)  both just-in-time (JIT) and activity-based costing (AB
C)  have been implemented. 
B)  JIT purchasing has been implemented. 
C)  both JIT production and JIT purchasing have been implemented. 
D)  reduced set-up times have resulted from JIT's introduction.

Question 7

An example of a carrying cost is:

Accepted Answer

A)  warehouse security. 
B)  time spent finding suppliers. 
C)  additional machinery set-ups. 
D)  transportation costs. 
A)  warehouse security. 
B)  time spent finding suppliers. 
C)  additional machinery set-ups. 
D)  transportation costs.

Question 8

Break-even time may be defined as:

Accepted Answer

A)  the time from commencement of production of a new product to the point where sufficient profit has been generated to repay the original investment. 
B)  the time from the original concept to the point where sufficient profit has been generated to repay the original investment. 
C)  the time from the first delivery to a customer of a new product to the point where sufficient profit has been generated to repay the original investment. 
D)  None of the given answers 
A)  the time from commencement of production of a new product to the point where sufficient profit has been generated to repay the original investment. 
B)  the time from the original concept to the point where sufficient profit has been generated to repay the original investment. 
C)  the time from the first delivery to a customer of a new product to the point where sufficient profit has been generated to repay the original investment. 
D)  None of the given answers

Question 9

Explain the three levels of supplier activities and costs that are incurred by an organisation.

Accepted Answer

1Unit level activities are addit

Question 10

When organisations assess their own performance in relation to suppliers, two of the measures they can use are the response time to support queries and the number of suppliers or joint innovations generated.

Accepted Answer

A) True 
 B)False

The following dates apply to a specific order processed by Hamilton Ltd: What is the production lead time?

Which of the following are performance measures used by firms to assess their own performance in relation to suppliers? i. Percentage of orders processed by electronic means ii. Number of expedited orders iii. Response time to customer queries iv. Reduction in the number of suppliers

When calculating customer costs there are three levels of costs that must be considered―market level activities, customer level activities and order level activities.

Which of the following terms relate to e-commerce? i. B2B ii. C2B iii. B2C iv. EDI

Which of the following statements regarding backflush costing is false?

Select the best answer. Backflush costing is appropriate when:

An example of a carrying cost is:

Break-even time may be defined as:

Explain the three levels of supplier activities and costs that are incurred by an organisation.

When organisations assess their own performance in relation to suppliers, two of the measures they can use are the response time to support queries and the number of suppliers or joint innovations generated.

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 15: Managing Suppliers and Customers

The following dates apply to a specific order processed by Hamilton Ltd: What is the production lead time?

Which of the following are performance measures used by firms to assess their own performance in relation to suppliers? i. Percentage of orders processed by electronic means ii. Number of expedited orders iii. Response time to customer queries iv. Reduction in the number of suppliers

When calculating customer costs there are three levels of costs that must be considered―market level activities, customer level activities and order level activities.

Which of the following terms relate to e-commerce? i. B2B ii. C2B iii. B2C iv. EDI

Which of the following statements regarding backflush costing is false?

Select the best answer. Backflush costing is appropriate when:

An example of a carrying cost is:

Break-even time may be defined as:

Explain the three levels of supplier activities and costs that are incurred by an organisation.

When organisations assess their own performance in relation to suppliers, two of the measures they can use are the response time to support queries and the number of suppliers or joint innovations generated.

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters