Question 1

Which of the following statements best describes the relationship among the costs of quality?

Accepted Answer

A)   Spending more on prevention and appraisal costs will reduce the total overall costs of quality.
B)   Spending more on prevention and appraisal costs will increase the total overall costs of quality.
C)   Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs.
D)   The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs.E) B) and C)
F) All of the above

Question 2

Just-in-time manufacturing philosophy reduces all of the following except

Accepted Answer

A)   inventory
B)   setup time
C)   lead time
D)   overhead costsE) None of the above
F) A) and C)

Question 3

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Question 4

Schedule of Activity Costs  From the above schedule of activity costs, determine the prevention costs.

Accepted Answer

A)   $30,000
B)   $74,000
C)   $76,000
D)   $104,000E) A) and B)
F) A) and C)

Question 5

Make-to-order companies produce mainly to stock inventory.

Accepted Answer

A) True 
 B)False

Question 6

Kilbuck Manufacturing operates in a just-in-time manufacturing environment. Kilbuck's actual conversion costs for the month of April follow:  The journal entry to record April's conversion costs will include:

Accepted Answer

A)   a debit to Work in Process Inventory
B)   a debit to Raw Materials Inventory
C)   a credit to Raw and In Process Inventory
D)   a debit to Raw and In Process InventoryE) A) and D)
F) C) and D)

Question 7

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 8

In a just-in-time (JIT) environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Accepted Answer

A) True 
 B)False

Question 9

____ manufacturing deals with several suppliers in hopes of finding the best price.

Accepted Answer

A)   Traditional
B)   Just-In-Time
C)   Economic
D)   Productivity improvementE) A) and B)
F) None of the above

Question 10

In a just-in-time (JIT) environment, process problems are less visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 11

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

A) True 
 B)False

Question 12

Lead time is the process time between start and completion.

Accepted Answer

A) True 
 B)False

Question 13

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Accepted Answer

A) True 
 B)False

Question 14

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Accepted Answer

A) True 
 B)False

Question 15

Costs of failing to control quality include prevention costs and external failure costs.

Accepted Answer

A) True 
 B)False

Question 16

Schedule of Activity Costs

Accepted Answer

From the above sched...

Question 17

Examples of transforming a traditional manufacturing environment to a just-in-time environment is to do all of the following except

Accepted Answer

A)   form partnerships with reliable suppliers.
B)   reorganize operational processes to organized product lines.
C)   train employees to perform various operations.
D)   increase raw materials to produce more thereby increasing finished goods inventory.E) None of the above
F) B) and D)

Question 18

Schedule of Activity Costs  From the above schedule of activity costs, determine the value-added costs.

Accepted Answer

A)   $177,000
B)   $191,000
C)   $156,000
D)   $104,000E) C) and D)
F) A) and C)

Question 19

Inventory reduction is a ____ principle.

Accepted Answer

A)   just-in-time
B)   traditional processing
C)   economic
D)   wait timeE) B) and C)
F) A) and D)

Question 20

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August.

Accepted Answer

A)   $369,840
B)   $408,480
C)   $428,800
D)   $473,600E) None of the above
F) A) and B)

Exam 12: Cost Management for Just-In-Time Environments

Costs of failing to control quality include prevention costs and external failure costs.

Correct Answer
verified

Employee involvement does not include performing any indirect manufacturing functions.

Correct Answer
verified

Schedule of Activity Costs From the above schedule of activity costs, determine the value-added costs.

Correct Answer
verified

Correct Answer
verified

____ manufacturing deals with several suppliers in hopes of finding the best price.

Correct Answer
verified

Just-in-time manufacturing philosophy reduces all of the following except

Correct Answer
verified

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Correct Answer
verified

Which of the following statements best describes the relationship among the costs of quality?

Correct Answer
verified

In a just-in-time (JIT) environment, process problems are less visible than they are in a traditional environment.

Correct Answer
verified

Schedule of Activity Costs From the above schedule of activity costs, determine the prevention costs.

Correct Answer
verified

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Correct Answer
verified

Examples of transforming a traditional manufacturing environment to a just-in-time environment is to do all of the following except

Correct Answer
verified

Inventory reduction is a ____ principle.

Correct Answer
verified

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Correct Answer
verified

Lead time is the process time between start and completion.

Correct Answer
verified

Schedule of Activity Costs

Correct Answer
verified
From the above sched...
View Answer

Make-to-order companies produce mainly to stock inventory.

Correct Answer
verified

In a just-in-time (JIT) environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Correct Answer
verified

Kilbuck Manufacturing operates in a just-in-time manufacturing environment. Kilbuck's actual conversion costs for the month of April follow: The journal entry to record April's conversion costs will include:

Correct Answer
verified

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Correct Answer
verified

Exam 12: Cost Management for Just-In-Time Environments

Costs of failing to control quality include prevention costs and external failure costs.

Correct AnswerverifiedShow Answer

Employee involvement does not include performing any indirect manufacturing functions.

Correct AnswerverifiedShow Answer

Schedule of Activity Costs From the above schedule of activity costs, determine the value-added costs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

____ manufacturing deals with several suppliers in hopes of finding the best price.

Correct AnswerverifiedShow Answer

Just-in-time manufacturing philosophy reduces all of the following except

Correct AnswerverifiedShow Answer

The just-in-time (JIT) philosophy views inventory as an unnecessary waste of resources.

Correct AnswerverifiedShow Answer

Which of the following statements best describes the relationship among the costs of quality?

Correct AnswerverifiedShow Answer

In a just-in-time (JIT) environment, process problems are less visible than they are in a traditional environment.

Correct AnswerverifiedShow Answer

Schedule of Activity Costs From the above schedule of activity costs, determine the prevention costs.

Correct AnswerverifiedShow Answer

By spending more in costs of controlling quality, the costs of failing to control quality will decrease.

Correct AnswerverifiedShow Answer

Examples of transforming a traditional manufacturing environment to a just-in-time environment is to do all of the following except

Correct AnswerverifiedShow Answer

Inventory reduction is a ____ principle.

Correct AnswerverifiedShow Answer

In a pull manufacturing system, raw materials are released to production based on forecasted demand.

Correct AnswerverifiedShow Answer

Lead time is the process time between start and completion.

Correct AnswerverifiedShow Answer

Schedule of Activity Costs

Correct AnswerverifiedFrom the above sched...View AnswerShow Answer

Make-to-order companies produce mainly to stock inventory.

Correct AnswerverifiedShow Answer

In a just-in-time (JIT) environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Correct AnswerverifiedShow Answer

Kilbuck Manufacturing operates in a just-in-time manufacturing environment. Kilbuck's actual conversion costs for the month of April follow: The journal entry to record April's conversion costs will include:

Correct AnswerverifiedShow Answer

In a push manufacturing system, raw materials are released to production based on forecasted demand.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
From the above sched...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified