Question 1

Yasamin Roshni owns and operates a small deli in Miami,Florida.Each morning she prepares a list that describes the quantity and variety of subs that will be prepared during the day.This list is an example of a(n)

Accepted Answer

A) bill of materials. 
B) operations list. 
C) materials requisition. 
D) production order.

Question 2

Discuss the criticisms of traditional cost accounting methods.

Accepted Answer

The answer of Discuss the criticisms of traditional cost accounting...

Question 3

What is the primary drawback to using a volume-driven base,such as direct labor or machine hours,to apply overhead to products in a traditional cost accounting system?

Accepted Answer

A) The cost accountant may not fully understand how to track direct labor or machine hours. 
B) It is difficult for an AIS to incorporate such a measurement into its system. 
C) It is difficult for an ERP to incorporate such a measurement into its integrated system. 
D) Many overhead costs are incorrectly allocated to products since they do not vary with production volume.

Question 4

Identify a key feature associated with materials requirements planning.

Accepted Answer

A) determining economic order quantity for all materials 
B) minimizing or eliminating carrying and stockout costs 
C) determining the optimal reorder points for all materials 
D) reducing required inventory levels by scheduling production, rather than estimating needs

Question 5

How many side panels should the company budget for use in week two?
Bill of Materials

Accepted Answer

The answer of How many side panels should the company...

Question 6

"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 7

The best control procedure for accurate data entry is

Accepted Answer

A) the use of on-line terminals. 
B) an access control matrix. 
C) passwords and user IDs. 
D) automation of data collection.

Question 8

Detailed data about reasons for warranty and repair costs is considered an applicable control used to mitigate the threat of

Accepted Answer

A) underproduction. 
B) overproduction. 
C) poor product design. 
D) suboptimal investment of fixed assets.

Question 9

The production cycle differs from the revenue and expenditure cycles for all the following reasons except

Accepted Answer

A) cost accounting is involved in all activities. 
B) not all organizations have a production cycle. 
C) there are no direct external data sources or destinations. 
D) very little technology exists to make activities more efficient.

Question 10

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 11

For replacement of inventories and assets destroyed by fire or other disasters,an organization needs

Accepted Answer

A) stand-by facilities. 
B) adequate insurance coverage. 
C) source data automation. 
D) All of the above are correct.

Question 12

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 13

In an Activity-Based Costing (ABC)system,a cause-and-effect relationship is known as a

Accepted Answer

A) cost stimulator. 
B) overhead stimulator. 
C) cost driver. 
D) cost catalyst.

Question 14

What is a RFP and how can management use it to improve its production operations?

Accepted Answer

The answer of What is a RFP and how can...

Question 15

Which type of information below should not be maintained by the AIS in accounting for fixed assets?

Accepted Answer

A) Identification/serial number . 
B) Cost. 
C) Improvements. 
D) Market value.

Question 16

The risks associated with over-production are likely of greatest concern to which company below?

Accepted Answer

A) a cereal manufacturer 
B) a manufacturer that produces designer clothing 
C) a manufacturer of printer paper 
D) a mailbox manufacturer

Question 17

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

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The answer of Identify and discuss the two documents that...

Question 18

Discuss the three categories of overhead costs in an activity-based costing system.

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Question 19

The threat of loss of data exposes the company to

Accepted Answer

A) the loss of assets. 
B) ineffective decision making. 
C) inefficient manufacturing. 
D) All of the above are correct.

Question 20

Which of the following is not a product design objective?

Accepted Answer

A) Design a product that meets customer requirements. 
B) Design a quality product. 
C) Minimize production costs. 
D) Make the design easy to track for cost accounting purposes.

Exam 14: The Production Cycle