Question 1

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

Accepted Answer

A)  prevention 
B)  inspection 
C)  internal failure 
D)  external failure

Question 2

________ are associated with testing to ensure that products meet quality standards.

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

Labor productivity is measured by the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity 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 5

Identify one control that can be used to mitigate the threat of under-production.

Accepted Answer

A)  production planning systems 
B)  analysis of warranty and repair costs 
C)  encryption 
D)  insurance

Question 6

ERP systems make it easier for an organization to implement an activity based costing approach.

Accepted Answer

A) True 
 B)False

Question 7

What information is necessary to create the master production schedule?

Accepted Answer

A)  engineering department specifications and inventory levels 
B)  engineering department specifications and sales forecasts 
C)  special orders information and engineering department specifications 
D)  sales forecasts, special orders information, and inventory levels

Question 8

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 9

Elif Package Delivery determines the cost per delivery by averaging total cost over the number of deliveries.What costing approach does Elif Package Delivery use?

Accepted Answer

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

Question 10

Which of the following is not proposed to be an advantage of activity-based costing?

Accepted Answer

A)  better product mix decisions 
B)  better product pricing decisions 
C)  less complex than traditional cost systems 
D)  none of the above

Question 11

The ________ authorizes the transfer of raw materials from the storeroom to the production floor.

Accepted Answer

A)  bill of materials 
B)  production order 
C)  materials requisition 
D)  move ticket

Question 12

The expenses associated with disposal of defective products are ________ costs.

Accepted Answer

A)  prevention 
B)  inspection 
C)  internal failure 
D)  external failure

Question 13

Explain what CIM means and its benefits.

Accepted Answer

The answer of Explain what CIM means and its benefits....

Question 14

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 15

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 16

What types of data are accumulated by cost accounting? What is the accountant's role in cost accounting?

Accepted Answer

The answer of What types of data are accumulated by...

Question 17

The expenses associated with a product recall are ________ costs.

Accepted Answer

A)  prevention 
B)  inspection 
C)  internal failure 
D)  external failure

Question 18

Why might an organization find it most beneficial to involve accountants in product design?

Accepted Answer

A)  because generally at least 65% of product costs are determined in the design stage and accountants can help minimize product costs 
B)  because accountants are generally able to improve the quality of new products 
C)  because involving accountants in product design boosts firm morale 
D)  because accountants are generally able to identify what consumers want in a new product

Question 19

The cost of a product liability claim can be classified as a(n)

Accepted Answer

A)  prevention cost. 
B)  inspection cost. 
C)  internal failure cost. 
D)  external failure cost.

Question 20

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.

Exam 14: The Production Cycle

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

________ are associated with testing to ensure that products meet quality standards.

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

Labor productivity is measured by the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by

Identify one control that can be used to mitigate the threat of under-production.

ERP systems make it easier for an organization to implement an activity based costing approach.

What information is necessary to create the master production schedule?

Elif Package Delivery determines the cost per delivery by averaging total cost over the number of deliveries.What costing approach does Elif Package Delivery use?

Which of the following is not proposed to be an advantage of activity-based costing?

The ________ authorizes the transfer of raw materials from the storeroom to the production floor.

The expenses associated with disposal of defective products are ________ costs.

Explain what CIM means and its benefits.

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

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?

What types of data are accumulated by cost accounting? What is the accountant's role in cost accounting?

The expenses associated with a product recall are ________ costs.

Why might an organization find it most beneficial to involve accountants in product design?

The cost of a product liability claim can be classified as a(n)

This document appears to be a