Question 1

How many side panels should the company budget for use in week two?
Bill of Materials
 $$\begin{array}{l}
\text { Finished Product: DVD Player }\
\begin{array} { | l | l | l | } 
\hline \text { Part Nurmber } & \text { Description } & \text { Quartity } \
\hline 105 & \text { Control Urit } & 1 \
125 & \text { Back Pariel } & 1 \
148 & \text { Bide Parel } & 2 \
155 & \text { Top/Bottom Pariel } & 2 \
173 & \text { Timer } & 1 \
195 & \text { Front Parel } & 1 \
199 & \text { Screw } & 6\\hline
\end{array}
\end{array}$$ 
 $$\begin{array}{l}
\text {operation list for: creating side list }\
\begin{array} { |l | l |l |l | } 
\hline\text { operation number}&\text { description}&\text { machine number}&\text { standerd time(m:s)}\
105&\text{cut to shape}&ML 15-12&2:00\
106&\text{corner cut}&ML 15-9&3:15\
124&\text{turn and shape}&S28-17&4:00\
142&\text{finish}&F54-5&7:10\
155&\text{paint}&P89-1&9:30\\hline
\end{array}
\end{array}$$

Accepted Answer

600 (2 per finished unit × 300 units scheduled to be produced)

Question 2

Identify and discuss the two documents that are the result of product design activities.

Accepted Answer

The two documents that are the result of product design activity are the bill of materials and the operations list.The bill of materials specifies the part number,description,and quantity of each component used in a finished product.The operations list specifies the labor and machine requirements needed to manufacture the product.The operations list is sometimes also called a routing sheet,since it indicates how a product moves through the factory.

Question 3

Which of the following organization controls should be implemented and maintained to counteract the general threat that the loss of production data will greatly slow or halt production activity?

Accepted Answer

A)  Store key master inventory and production order files on-site only to prevent their theft.
B)  Back up data files only after a production run has been physically completed.
C)  Access controls should apply to all terminals within the organization.
D)  Allow access to inventory records from any terminal within the organization to provide efficient data entry. C

Question 4

Sule Technologies installed a new production monitoring system that will reduce system breakdowns by 35%.The new system will increase throughput by

Accepted Answer

A)  increasing productive capacity.
B)  increasing yield.
C)  increasing productive processing time.
D)  increasing all components of throughput.

Question 5

________ are incurred to ensure that products are created without defects the first time.

Accepted Answer

A)  External failure costs
B)  Inspection costs
C)  Internal failure costs
D)  Prevention costs

Question 6

What issue did Airbus encounter when using CAD software to help design the A380 Superjumbo airliner?

Accepted Answer

A)  The actual A380 was heavier than the CAD model.
B)  The actual A380 was not able to carry as much weight as the CAD model.
C)  Design teams used different versions of the same CAD software,resulting in key information loss.
D)  The CAD software was not advanced enough to help design the A380.

Question 7

How can PLM software improve the efficiency and effectiveness of the product design process?

Accepted Answer

A)  It can eliminate the costs associated with creating and destroying physical prototypes.
B)  It can simulate how new products will be manufactured.
C)  It can store all the data associated with all products.
D)  All of the above

Question 8

What is activity-based costing (ABC)? How does it compare with the traditional costing methods? What are the benefits of activity-based costing?

Accepted Answer

The answer of What is activity-based costing (ABC)? How does...

Question 9

In addition to identifying and dealing with defective products before they reach customers,quality management is concerned with initiating process changes that will reduce the number of defective units produced.All other things held constant,a decrease in the number of defective units will increase throughput by

Accepted Answer

A)  increasing productive capacity.
B)  increasing productive processing time.
C)  increasing yield.
D)  increasing all components of throughput.

Question 10

Which objective listed below is not a cost accounting objective for the production cycle?

Accepted Answer

A)  Provide information for planning,controlling,and evaluating the performance of production operations.
B)  Provide cost data about products used in pricing and product mix decisions.
C)  Collect and process the information used to calculate inventory and cost of goods sold amounts that appear in the financial statements.
D)  Provide tests of audit control functions as part of the AIS.

Question 11

"Pull manufacturing" is also known as

Accepted Answer

A)  manufacturing resource planning (MRP) .
B)  just-in-time manufacturing system (JIT) .
C)  the economic order quantity (EOQ) system.
D)  ahead-of-time production implementation (ATPI) .

Question 12

Which of the following is not a benefit of activity-based costing?

Accepted Answer

A)  Lower cost.
B)  Better decisions.
C)  Improved cost management.
D)  Identification of cost drivers.

Question 13

How many labor hours should the company budget in week three to produce all side panels needed? Round to the nearest hour,if necessary.
Bill of Materials
 $$\begin{array}{l}
\text { Finished Product: DVD Player }\
\begin{array} { | l | l | l | } 
\hline \text { Part Nurmber } & \text { Description } & \text { Quartity } \
\hline 105 & \text { Control Urit } & 1 \
125 & \text { Back Pariel } & 1 \
148 & \text { Bide Parel } & 2 \
155 & \text { Top/Bottom Pariel } & 2 \
173 & \text { Timer } & 1 \
195 & \text { Front Parel } & 1 \
199 & \text { Screw } & 6\\hline
\end{array}
\end{array}$$ 
 $$\begin{array}{l}
\text {operation list for: creating side list }\
\begin{array} { |l | l |l |l | } 
\hline\text { operation number}&\text { description}&\text { machine number}&\text { standerd time(m:s)}\
105&\text{cut to shape}&ML 15-12&2:00\
106&\text{corner cut}&ML 15-9&3:15\
124&\text{turn and shape}&S28-17&4:00\
142&\text{finish}&F54-5&7:10\
155&\text{paint}&P89-1&9:30\\hline
\end{array}
\end{array}$$

Accepted Answer

The answer of How many labor hours should the company...

Question 14

Grizzly Delivery calculates the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.What costing approach does Grizzly Delivery use?

Accepted Answer

A)  job-order
B)  activity-based
C)  unit-based
D)  process

Question 15

This document appears to be a

Accepted Answer

A)  Materials Requisition.
B)  Production Order.
C)  Bill of Materials.
D)  Move Ticket between production and warehouse functions.

Question 16

The VP of Manufacturing at Roshanak Incorporated wants to buy a new die cast machine for production.The die cast machine is expected to cost around $1,000,000.Which document will most likely be used to solicit bids from suppliers?

Accepted Answer

A)  RFP
B)  eVoice
C)  RFJ
D)  RFB

Question 17

How does an MRP inventory system reduces inventory levels?

Accepted Answer

A)  by reducing the uncertainty regarding when materials are needed
B)  by receiving materials exactly when needed and in exact quantities
C)  by computing the exact costs of purchasing and carrying inventory
D)  none of the above

Question 18

The operations list shows

Accepted Answer

A)  the labor and machine requirements.
B)  the steps and operations in the production cycle.
C)  the time expected to complete each step or operation.
D)  all of the above

Question 19

Which of the following controls can minimize the threat of over- and underproduction?

Accepted Answer

A)  The use of innovative performance metrics.
B)  The use of periodic physical counts of inventory and reconciliation of those counts to recorded quantities.
C)  The use of encryption.
D)  The use of production planning systems.

Question 20

Traditionally,what did manufacturing firms use to track the amount of time a worker spends on each specific task?

Accepted Answer

A)  Job-time ticket.
B)  Sign-in sheet.
C)  Punch card.
D)  RFID tags.

Exam 14: The Production Cycle