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Exam 26: Lean Manufacturing and Activity Analysis

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Question 51

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Which of the following results in fewer transactions in lean accounting?

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) All of the above
F) B) and C)

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Question 52

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

A) True
B) False

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Question 53

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In a push manufacturing system,raw materials are released to production based on actual customer orders.

Inventory reduction is a ____ principle.

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

How are the objectives of lean manufacturing achieved?

Lean manufacturing philosophy reduces all of the following except

The lean philosophy views inventory as a necessary buffer to protect against process problems.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Traditional manufacturing emphasizes all of the following except

In a lean environment,the journal entry to record conversion costs would include a debit to the raw and in process inventory account.

A setup is the time required to prepare an operation for a new production run.

____ manufacturing philosophy emphasizes quality and zero defects.

The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include only factory overhead costs.

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes,weather,etc.than when using the traditional philosophy.

Large batch sizes increase lead time.

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

In a lean environment,process problems are more visible than they are in a traditional environment because:

Push manufacturing is also referred to as make-to-order processing.

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