Question 1

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is an example of value-added time?

Accepted Answer

A)   Processing time
B)   Wait time during inspection
C)   Wait time in inventory
D)   Both B and CE) B) and D)
F) A) and C)

Question 3

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 lean cell for each customer. The following information relates only to one customer's lean 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) A) and D)
F) None of the above

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Match between columns
                        Premises: Scrap
Warranty work
Testing
Returned merchandise
Vendor quality
Recalls
Operator training
Preventive machine maintenance

Accepted Answer

The Answer of External failure costs and Preventive costs and is...

Question 6

Match between columns
                        Premises: Processing returned materials
Materials inspection
Scrap material
Preventive machine maintenance
Rework
Design engineering
Finished goods inspection
Customer service calls

Accepted Answer

The Answer of Value-added and Non-value-added is...

Question 7

In a lean system, the work in process and raw materials inventory accounts are combined.

Accepted Answer

A) True 
 B)False

Question 8

Peters Manufacturing Co. operates in a lean manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000. 
Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

Accepted Answer

Budgeted cell conversion cost ...

Question 9

Prevention costs and appraisal costs are considered costs of controlling quality.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an example of a nonfinancial measure?

Accepted Answer

A)   lead time
B)   setup time
C)   units scrapped
D)   all of the aboveE) All of the above
F) A) and B)

Question 11

Make-to-order companies typically produce in small batch sizes.

Accepted Answer

A) True 
 B)False

Question 12

In a lean 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 13

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

Accepted Answer

A)   traditional
B)   lean
C)   total quality management
D)   product costE) A) and C)
F) A) and B)

Question 14

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 15

A process-oriented layout segments production facilities into functional departments.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Alaskan Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds. Annual budgeted cell conversion costs were as follows:  
Alaskan planned 2,500 total machine hours for the year. 
Calculate Alaskan's budgeted cell conversion cost rate for the year.

Accepted Answer

Budgeted cell conversion cost ...

Question 18

Which of the following is a value-added activity?

Accepted Answer

A)   scrap processing
B)   rework
C)   preventive maintenance
D)   warranty workE) A) and B)
F) None of the above

Question 19

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 D)
F) C) and D)

Question 20

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

Exam 12: Lean Manufacturing and Activity Analysis

Identify the following quality control activities as either value-added or non-value-added.

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Correct Answer
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Which of the following is an example of value-added time?

Correct Answer
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Make-to-order companies typically produce in small batch sizes.

Correct Answer
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Which of the following is a value-added activity?

Correct Answer
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Correct Answer
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Budgeted cell conversion cost ...
View Answer

In a lean system, the work in process and raw materials inventory accounts are combined.

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

Correct Answer
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From the above schedule of activity costs, determine the value-added costs.

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

Correct Answer
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Identity the following by their type of quality cost.

Which of the following is an example of a nonfinancial measure?

Correct Answer
verified

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 Answer
verified

A process-oriented layout segments production facilities into functional departments.

Correct Answer
verified

Correct Answer
verified
Budgeted cell conversion cost ...
View Answer

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

Correct Answer
verified

From the above schedule of activity costs, determine the prevention costs.

Correct Answer
verified

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Correct Answer
verified

Correct Answer
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Prevention costs and appraisal costs are considered costs of controlling quality.

Correct Answer
verified

Exam 12: Lean Manufacturing and Activity Analysis

Identify the following quality control activities as either value-added or non-value-added.

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Correct AnswerverifiedShow Answer

Which of the following is an example of value-added time?

Correct AnswerverifiedShow Answer

Make-to-order companies typically produce in small batch sizes.

Correct AnswerverifiedShow Answer

Which of the following is a value-added activity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedBudgeted cell conversion cost ...View AnswerShow Answer

In a lean system, the work in process and raw materials inventory accounts are combined.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Identity the following by their type of quality cost.

Which of the following is an example of a nonfinancial measure?

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

A process-oriented layout segments production facilities into functional departments.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedBudgeted cell conversion cost ...View AnswerShow Answer

Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

Correct AnswerverifiedShow Answer

From the above schedule of activity costs, determine the prevention costs.

Correct AnswerverifiedShow Answer

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Prevention costs and appraisal costs are considered costs of controlling quality.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Budgeted cell conversion cost ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Budgeted cell conversion cost ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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