Question 1

What do just-in-time (JIT)  manufacturers demand from their vendors?

Accepted Answer

A)   High quality materials
B)   Low cost materials
C)   On-time deliveries
D)   All of the aboveE) All of the above
F) A) and B)

Question 2

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 B)
F) C) and D)

Question 3

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

Accepted Answer

A) True 
 B)False

Question 4

Long setups and large batch sizes result in smaller inventories.

Accepted Answer

A) True 
 B)False

Question 5

Lead time is the process time between start and completion.

Accepted Answer

A) True 
 B)False

Question 6

Reducing wait time is not linked to reducing inventory.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following drives work-in-process inventory levels higher?

Accepted Answer

A)   Machine breakdowns
B)   Production rate losses
C)   Rework processes
D)   All of the aboveE) C) and D)
F) None of the above

Question 9

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) A) and B)
F) A) and C)

Question 10

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

Accepted Answer

A)   $30,000
B)   $50,000
C)   $64,000
D)   $85,000E) A) and B)
F) A) and C)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A quality control activity analysis indicated the following four activity costs of a hotel.
  Sales are $750,000 for the year. Prepare a cost of quality report.

Accepted Answer

The answer of A quality control activity analysis indicated the...

Question 13

Which of the following results in fewer transactions in just-in-time accounting?

Accepted Answer

A)   all manufacturing costs are combined in one account called Raw and In Process Inventory.
B)   the distinction between direct and indirect costs is eliminated.
C)   there is less movement of inventory between departments.
D)   All of the above.E) B) and C)
F) C) and D)

Question 14

____ manufacturing philosophy emphasizes quality and zero defects.

Accepted Answer

A)   Traditional
B)   Just-In-Time
C)   Zero-Based
D)   StrategicE) A) and B)
F) B) and C)

Question 15

Which of the following is best suited to providing timely and focused performance information?

Accepted Answer

A)   non-financial information
B)   financial accounting information
C)   cost accounting information
D)   variance analysisE) A) and D)
F) None of the above

Question 16

A college would like to increase enrollment by streamlining the enrollment process. Which of the following would not fall in line with the college goal?

Accepted Answer

A)   Reduce the requirements necessary to enroll.
B)   Relocate counselors, academic advisors, and financial aid specialists for a major to a central location.
C)   Cross-train counselors, academic advisors, and financial aid specialists.
D)   All of the above would fall in line with the college goal.E) B) and C)
F) C) and D)

Question 17

Large batch sizes increase lead time.

Accepted Answer

A) True 
 B)False

Question 18

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Accepted Answer

A) True 
 B)False

Question 19

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 27: Cost Management for Just-In-Time Environments

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

A college would like to increase enrollment by streamlining the enrollment process. Which of the following would not fall in line with the college goal?

Correct AnswerverifiedShow Answer

Reducing wait time is not linked to reducing inventory.

Correct AnswerverifiedShow Answer

A quality control activity analysis indicated the following four activity costs of a hotel. Sales are $750,000 for the year. Prepare a cost of quality report.

Correct AnswerverifiedShow Answer

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

Correct AnswerverifiedShow Answer

Long setups and large batch sizes result in smaller inventories.

Correct AnswerverifiedShow Answer

Just-in-Time (JIT) manufacturing favors organizing work around processes rather than around products.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What do just-in-time (JIT) manufacturers demand from their vendors?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____ manufacturing philosophy emphasizes quality and zero defects.

Correct AnswerverifiedShow 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 raw materials purchases would include a credit to the raw materials inventory account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Lead time is the process time between start and completion.

Correct AnswerverifiedShow Answer

Large batch sizes increase lead time.

Correct AnswerverifiedShow Answer

Which of the following is best suited to providing timely and focused performance information?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following results in fewer transactions in just-in-time accounting?

Correct AnswerverifiedShow Answer

Which of the following drives work-in-process inventory levels higher?

Correct AnswerverifiedShow Answer

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