Exam 16: Managing Costs and Quality

One approach to cost reduction is to undertake value engineering where an analysis of design and production takes place with an aim to identify and eliminate non-value-adding activities.

Assume a production process that typically moves the following number of products through its five processes: Assuming there is room for improvement in all processes,in what order of processes would the firm apply the theory of constraints to remove the bottlenecks?

Which of the following statements best describes performance measurement in line with continuous improvement?

When a company uses an activity-based management system to reduce costs,the first step in the process is to determine the real causes of the costs.

In the process of target costing,where is the concentration of effort required to have the greatest impact on cost savings? i.Product design ii.Process design iii.Production costs iv.After sales costs

When inventory decreases with no change in throughput or operating expenses,then:

The theory of constraints focuses on:

Which of the following stages are considered in a product's life cycle? I Preliminary design Ii)Product pricing Iii)Product decline

A series of pictures that shows the flow of activities that make up a process is called:

Cartel Ltd has introduced a new product with a target price of $240 and a profit requirement of 33.3 per cent on sales.What is the target cost?

One way to manage throughput efficiently is to use a theory of constraints approach in an attempt to identify and remove bottlenecks in the system of production.

If a firm needs to identify the root cause cost drivers of activities,the firm needs to undertake a thorough cost driver analysis.

From the following list of costs,determine the amount of non-value-added cost.

Which of the following statements is consistent with target costing?

Which of the following statements is not specifically related to product life cycle costing?

Which of the following are possible root-cause cost drivers? i.Complexity ii.Defects produced iii.Plant layout iv.Inadequate employee training

The contemporary management tool that focuses on restrictions that limit a firm's ability to maximise long-run profit is commonly known as:

The following are the expected quality costs for a firm for a selected period.Calculate the amount of appraisal costs.

Lazy Linda Kitchen Appliances manufacturers small kitchen appliances like toasters and blenders.Last month Lazy Linda recorded the following quality costs: Lazy Linda's total external failure cost was:

The following are the expected quality costs for a firm for a selected period.Calculate the amount of prevention costs.