Question 1

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.E) A) and D)
F) B) and C)

Question 2

Which process or activity relates to overproduction?

Accepted Answer

A)  product design
B)  planning and scheduling
C)  production operations
D)  cost accountingE) B) and C)
F) A) and D)

Question 3

What are the two major types of cost accounting systems and what are the differences between the two?

Accepted Answer

Most companies will use either job-order...

Question 4

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

Accepted Answer

There are four types of cost data accumulated in a cost accounting system: raw materials; direct labor; machinery and equipment; and,manufacturing overhead.The role of the accountant is to control costs by assessing how product mix changes affect total manufacturing overhead and by identifying factors that drive changes in costs.

Question 5

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using ________ but an AIS enhancement is to use ________ to record and track direct labor costs.

Accepted Answer

A)  job-time tickets; coded identification cards
B)  move tickets; coded identification cards
C)  employee earnings records; job-time tickets
D)  time cards; electronic time entry terminalsE) None of the above
F) A) and B)

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) .E) B) and D)
F) C) and D)

Question 7

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.E) All of the above
F) B) and D)

Question 8

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.

Accepted Answer

A)  batch-related
B)  product-related
C)  company wide
D)  expenditure-basedE) A) and B)
F) A) and C)

Question 9

"Push 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) .E) B) and C)
F) B) and D) A

Question 10

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.E) B) and D)
F) All of the above

Question 11

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.E) A) and C)
F) B) and D)

Question 12

What role does the AIS play in the production cycle?

Accepted Answer

A company's AIS plays a vital role in the production cycle.Accurate and timely cost accounting information is essential input to decisions about the following: Product mix (what to produce),Product pricing,Resource allocation and planning (e.g.,whether to make or buy a product,relative profitability of different products),Cost management (planning and controlling manufacturing costs,evaluating performance).These decisions require much more detailed information about costs than the data needed to prepare financial statements in accordance with generally accepted accounting principles (GAAP).Thus,the design of a company's production cycle AIS must go beyond merely meeting external financial reporting requirements.

Question 13

A master production schedule is used to develop detailed

Accepted Answer

A)  timetables of daily production and determine raw material needs.
B)  reports on daily production and material usage.
C)  daily reports on direct labor needs.
D)  inventory charts.E) B) and D)
F) None of the above

Question 14

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

Accepted Answer

Threat 1: Unauthorized transactions - Co...

Question 15

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

Question 16

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 productE) A) and B)
F) All of the above

Question 17

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.E) A) and D)
F) None of the above

Question 18

What does the first term in the throughput formula,productive capacity,represent?

Accepted Answer

A)  the maximum number of units that can be produced given current technology
B)  the percentage of total production time used to manufacture a product
C)  the percentage of "good" units produced given current technology
D)  the percentage of "bad" units produced given current technologyE) All of the above
F) A) and D)

Question 19

________ is an efficient way to track and process information about raw materials used in production.

Accepted Answer

A)  A just-in-time inventory system
B)  Identifying materials with bar codes or RFID tags
C)  A materials resources planning inventory system
D)  Job-order costingE) B) and C)
F) A) and B)

Question 20

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.E) A) and C)
F) None of the above

Exam 14: The Production Cycle

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

Correct Answer
verified

Which process or activity relates to overproduction?

Correct Answer
verified

What are the two major types of cost accounting systems and what are the differences between the two?

Correct Answer
verified
Most companies will use either job-order...
View Answer

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

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using but an AIS enhancement is to use to record and track direct labor costs.

Correct Answer
verified

"Pull manufacturing" is also known as

Correct Answer
verified

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?

Correct Answer
verified

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.

Correct Answer
verified

"Push manufacturing" is also known as

Correct Answer
verified
A

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

Correct Answer
verified

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

Correct Answer
verified

What role does the AIS play in the production cycle?

A master production schedule is used to develop detailed

Correct Answer
verified

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

Correct Answer
verified
Threat 1: Unauthorized transactions - Co...
View Answer

How does an MRP inventory system reduces inventory levels?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

What does the first term in the throughput formula,productive capacity,represent?

Correct Answer
verified

________ is an efficient way to track and process information about raw materials used in production.

Correct Answer
verified

Correct Answer
verified

Exam 14: The Production Cycle

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

Correct AnswerverifiedShow Answer

Which process or activity relates to overproduction?

Correct AnswerverifiedShow Answer

What are the two major types of cost accounting systems and what are the differences between the two?

Correct AnswerverifiedMost companies will use either job-order...View AnswerShow Answer

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

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using ________ but an AIS enhancement is to use ________ to record and track direct labor costs.

Correct AnswerverifiedShow Answer

"Pull manufacturing" is also known as

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.

Correct AnswerverifiedShow Answer

"Push manufacturing" is also known as

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What role does the AIS play in the production cycle?

A master production schedule is used to develop detailed

Correct AnswerverifiedShow Answer

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

Correct AnswerverifiedThreat 1: Unauthorized transactions - Co...View AnswerShow Answer

How does an MRP inventory system reduces inventory levels?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What does the first term in the throughput formula,productive capacity,represent?

Correct AnswerverifiedShow Answer

________ is an efficient way to track and process information about raw materials used in production.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Most companies will use either job-order...
View Answer

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using but an AIS enhancement is to use to record and track direct labor costs.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
A

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Threat 1: Unauthorized transactions - Co...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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