Question 1

A valuable method of assessing supplier performance is to use a supplier performance index.This index is calculated by:

Accepted Answer

A)  total purchase price ÷ total supplier costs 
B)  total supplier costs ÷ total purchase price 
C)  average purchase price ÷ average supplier costs 
D)  average supplier costs ÷ average purchase price 
A)  total purchase price ÷ total supplier costs 
B)  total supplier costs ÷ total purchase price 
C)  average purchase price ÷ average supplier costs 
D)  average supplier costs ÷ average purchase price

Question 2

Which of the following statements regarding a just-in-time (JIT)system are true?
i.Materials are purchased and goods are produced only as required
ii.Employees are highly skilled at single tasks in order to maintain quality control.
iii.A JIT system is characterised by small lot sizes.

Accepted Answer

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

Question 3

Which of the following can have a negative impact on a customer's profitability?

Accepted Answer

A)  Number of required sales contacts (phone calls,visits etc. ) 
B)  Accounts receivable collection time 
C)  Purchase order amendments 
D)  All of the given answers 
A)  Number of required sales contacts (phone calls,visits etc. ) 
B)  Accounts receivable collection time 
C)  Purchase order amendments 
D)  All of the given answers

Question 4

Under a backflush costing system,conversion costs are:

Accepted Answer

A)  applied to finished goods inventory 
B)  applied to manufacturing overhead only 
C)  applied directly to cost of goods sold 
D)  applied to finished goods inventory OR applied directly to cost of goods sold 
A)  applied to finished goods inventory 
B)  applied to manufacturing overhead only 
C)  applied directly to cost of goods sold 
D)  applied to finished goods inventory OR applied directly to cost of goods sold

Question 5

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 6

Average cycle time is estimated by:

Accepted Answer

A)  production time ÷ value of goods produced 
B)  total processing time ÷ total number of units produced 
C)  total processing time ÷ number of good units produced 
D)  number of good units produced ÷ total processing time 
A)  production time ÷ value of goods produced 
B)  total processing time ÷ total number of units produced 
C)  total processing time ÷ number of good units produced 
D)  number of good units produced ÷ total processing time

Question 7

James Bond Pty Ltd uses 960 tonnes of a particular chemical each year.Monthly usage fluctuates between 70 tonnes and 90 tonnes.The lead time for each order is six weeks and the economic order quantity is 160 tonnes.The safety stock for Bond's chemical would be:

Accepted Answer

A)  10 tonnes 
B)  20 tonnes 
C)  30 tonnes 
D)  None of the given answers 
A)  10 tonnes 
B)  20 tonnes 
C)  30 tonnes 
D)  None of the given answers

Question 8

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

Accepted Answer

A)  4 days 
B)  7 days 
C)  10 days 
D)  13 days 
A)  4 days 
B)  7 days 
C)  10 days 
D)  13 days

Question 9

GoGo Furniture needs to purchase glass panes to make glass top coffee tables.Last year GoGo Furniture has two suppliers,BolBol and TolTol.Based on last year's experience with these two suppliers,GoGo provides you with the following supplier related information:
What is the total amount of order-level costs relating to BolBol?

Accepted Answer

A)  $1050 
B)  $4050 
C)  $6300 
D)  $7050 
A)  $1050 
B)  $4050 
C)  $6300 
D)  $7050

Question 10

The reason a just-in-time system focuses on the control of inventories is because:

Accepted Answer

A)  they drive production lead times 
B)  they are an expensive capital item for most firms 
C)  they are what customers want 
D)  they have non-value-added characteristics 
A)  they drive production lead times 
B)  they are an expensive capital item for most firms 
C)  they are what customers want 
D)  they have non-value-added characteristics

Question 11

Which of the following statements is/are correct?
i.The economic order quantity determines the optimum order size for individual inventory items
ii.The economic order quantity cannot be used in a manufacturing organisation.
iii.The economic order quantity minimises the sum of the ordering and carrying costs.

Accepted Answer

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

Question 12

Which of the following are examples of inventory holding costs?
i.Inwards inspection
ii.Rental
iii.Opportunity cost
iv.Insurance

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 13

Time-based management is concerned with the elimination of idle time,which generates non-value-added costs in which of the following circumstances?

Accepted Answer

A)  The build up of inventories 
B)  Loss of customers 
C)  Delay in sales revenue generation 
D)  All of the given answers 
A)  The build up of inventories 
B)  Loss of customers 
C)  Delay in sales revenue generation 
D)  All of the given answers

Question 14

If time is not managed efficiently by companies,costs relating to a build-up of inventories and the rate at which products are produced can get out of control.

Accepted Answer

A) True 
 B)False

Question 15

GoGo Furniture needs to purchase glass panes to make glass top coffee tables.Last year GoGo Furniture has two suppliers,BolBol and TolTol.Based on last year's expernece with these two suppliers,GoGo provides you with the following supplier related information:
The supplier performance index of BolBol and TolTol are,respectively:

Accepted Answer

A)  BolBol 0.30;TolTol 0.05 
B)  BolBol 1.20;TolTol 1.03 
C)  BolBol 1.30;TolTol 1.05 
D)  BolBol 1.51;TolTol 0.40 
A)  BolBol 0.30;TolTol 0.05 
B)  BolBol 1.20;TolTol 1.03 
C)  BolBol 1.30;TolTol 1.05 
D)  BolBol 1.51;TolTol 0.40

Question 16

Under a backflush costing system,the journal entry to purchase raw materials on account is:

Accepted Answer

A)  debit work in process and credit accounts payable 
B)  debit raw materials and credit cash 
C)  debit raw and in-process inventory and credit accounts payable 
D)  debit cost of goods sold and credit accounts payable 
A)  debit work in process and credit accounts payable 
B)  debit raw materials and credit cash 
C)  debit raw and in-process inventory and credit accounts payable 
D)  debit cost of goods sold and credit accounts payable

Question 17

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 18

Which of the following set of measures are appropriate in monitoring 'customer retention'?

Accepted Answer

A)  Proportion of sales from existing customers,number of repeat purchases,sales growth from customers using loyalty cards 
B)  Customer satisfaction rating,number of repeat purchases,customer acquisition costs 
C)  Customer satisfaction rating,sales growth from customers using loyalty cards,customer profitability per quarter 
D)  Proportion of sales from existing customers,market share,profit attributable to customers in the 21-30 age groups 
A)  Proportion of sales from existing customers,number of repeat purchases,sales growth from customers using loyalty cards 
B)  Customer satisfaction rating,number of repeat purchases,customer acquisition costs 
C)  Customer satisfaction rating,sales growth from customers using loyalty cards,customer profitability per quarter 
D)  Proportion of sales from existing customers,market share,profit attributable to customers in the 21-30 age groups

Question 19

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

Accepted Answer

A)  21 days 
B)  7 days 
C)  10 days 
D)  13 days 
A)  21 days 
B)  7 days 
C)  10 days 
D)  13 days

Question 20

Which of the following are shortage costs?

Accepted Answer

A)  Cost of disrupted production 
B)  Lost sales resulting in unsatisfied customers 
C)  Loss of quantity discounts on purchases 
D)  All of the given answers 
A)  Cost of disrupted production 
B)  Lost sales resulting in unsatisfied customers 
C)  Loss of quantity discounts on purchases 
D)  All of the given answers

A valuable method of assessing supplier performance is to use a supplier performance index.This index is calculated by:

Which of the following statements regarding a just-in-time (JIT)system are true? i.Materials are purchased and goods are produced only as required ii.Employees are highly skilled at single tasks in order to maintain quality control. iii.A JIT system is characterised by small lot sizes.

Which of the following can have a negative impact on a customer's profitability?

Under a backflush costing system,conversion costs are:

An example of a carrying cost is:

Average cycle time is estimated by:

James Bond Pty Ltd uses 960 tonnes of a particular chemical each year.Monthly usage fluctuates between 70 tonnes and 90 tonnes.The lead time for each order is six weeks and the economic order quantity is 160 tonnes.The safety stock for Bond's chemical would be:

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

The reason a just-in-time system focuses on the control of inventories is because:

Which of the following are examples of inventory holding costs? i.Inwards inspection ii.Rental iii.Opportunity cost iv.Insurance

Time-based management is concerned with the elimination of idle time,which generates non-value-added costs in which of the following circumstances?

If time is not managed efficiently by companies,costs relating to a build-up of inventories and the rate at which products are produced can get out of control.

Under a backflush costing system,the journal entry to purchase raw materials on account is:

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

Which of the following set of measures are appropriate in monitoring 'customer retention'?

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

Which of the following are shortage costs?

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

A valuable method of assessing supplier performance is to use a supplier performance index.This index is calculated by:

Which of the following statements regarding a just-in-time (JIT)system are true? i.Materials are purchased and goods are produced only as required ii.Employees are highly skilled at single tasks in order to maintain quality control. iii.A JIT system is characterised by small lot sizes.

Which of the following can have a negative impact on a customer's profitability?

Under a backflush costing system,conversion costs are:

An example of a carrying cost is:

Average cycle time is estimated by:

James Bond Pty Ltd uses 960 tonnes of a particular chemical each year.Monthly usage fluctuates between 70 tonnes and 90 tonnes.The lead time for each order is six weeks and the economic order quantity is 160 tonnes.The safety stock for Bond's chemical would be:

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

The reason a just-in-time system focuses on the control of inventories is because:

Which of the following are examples of inventory holding costs? i.Inwards inspection ii.Rental iii.Opportunity cost iv.Insurance

Time-based management is concerned with the elimination of idle time,which generates non-value-added costs in which of the following circumstances?

If time is not managed efficiently by companies,costs relating to a build-up of inventories and the rate at which products are produced can get out of control.

Under a backflush costing system,the journal entry to purchase raw materials on account is:

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

Which of the following set of measures are appropriate in monitoring 'customer retention'?

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

Which of the following are shortage costs?

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