Question 1

In a lean accounting system, the costs of direct labor are recorded in the conversion costs account.

Accepted Answer

A) True 
 B)False

Question 2

Accounting for lean operations requires fewer transactions because

Accepted Answer

A)  large batches of inventory are combined into a smaller number of transactions
B)  costs are accumulated in one department and then transferred to the next department
C)  combined materials and conversion costs are transferred to finished goods
D)  costs are transferred from department to department allowing for better control of costsE) B) and D)
F) A) and C)

Question 3

A backflush accounting system uses work in process inventories as control points between each process step.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  All manufacturing costs are combined into 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 these choicesE) A) and B)
F) C) and D) D

Question 5

A pull manufacturing company matches its production schedules to actual customer orders.

Accepted Answer

A) True 
 B)False  True

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Schedule of Activity Costs  ​
-From the provided schedule of activity costs, determine the appraisal costs.

Accepted Answer

A)  $50,000
B)  $23,000
C)  $73,000
D)  $104,000E) A) and C)
F) C) and D)

Question 8

Lean manufacturing philosophy reduces all of the following except

Accepted Answer

A)  inventory
B)  setup time
C)  lead time
D)  conversion costsE) B) and C)
F) B) and D)

Question 9

Push manufacturing (or make to stock) is a traditional approach to manufacturing.

Accepted Answer

A) True 
 B)False

Question 10

Lean manufacturing values labor for contributions beyond labor tasks, using employee involvement that grants employees the responsibility and authority to make decisions about operations.

Accepted Answer

A) True 
 B)False

Question 11

Lean manufacturing favors organizing work around processes rather than around products.

Accepted Answer

A) True 
 B)False

Question 12

From the provided schedule of activity costs, determine the internal failure costs.

Accepted Answer

$37,000 = $29,000 + $8,000

Question 13

Schedule of Activity Costs  ​
-Which of the following is not an external failure cost?

Accepted Answer

A)  warranty work
B)  processing returned merchandise
C)  rework
D)  correcting invoice errorsE) B) and C)
F) B) and D)

Question 14

In a lean 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 15

Match each of the following activities with the appropriate quality cost classification (a-d).
-Maintaining equipment
A)Prevention cost
B)Appraisal cost
C)Internal failure cost
D)External failure cost

Accepted Answer

The answer of Match each of the following activities with...

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  inventories are maintained at higher levels
B)  process problems cause production to shut down immediately
C)  the push manufacturing system leads to increased inventory levels
D)  the lack of work in process inventory creates problemsE) A) and B)
F) A) and C)

Question 18

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)  none of these choicesE) A) and D)
F) C) and D)

Question 19

Pull manufacturing companies typically produce in small batch sizes.

Accepted Answer

A) True 
 B)False

Question 20

Employee involvement does not include performing any indirect manufacturing functions.

Accepted Answer

A) True 
 B)False

Exam 27: Lean Manufacturing and Activity Analysis

In a lean accounting system, the costs of direct labor are recorded in the conversion costs account.

Correct AnswerverifiedShow Answer

Accounting for lean operations requires fewer transactions because

Correct AnswerverifiedShow Answer

A backflush accounting system uses work in process inventories as control points between each process step.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

A pull manufacturing company matches its production schedules to actual customer orders.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Schedule of Activity Costs ​ -From the provided schedule of activity costs, determine the appraisal costs.

Correct AnswerverifiedShow Answer

Lean manufacturing philosophy reduces all of the following except

Correct AnswerverifiedShow Answer

Push manufacturing (or make to stock) is a traditional approach to manufacturing.

Correct AnswerverifiedShow Answer

Lean manufacturing values labor for contributions beyond labor tasks, using employee involvement that grants employees the responsibility and authority to make decisions about operations.

Correct AnswerverifiedShow Answer

Lean manufacturing favors organizing work around processes rather than around products.

Correct AnswerverifiedShow Answer

From the provided schedule of activity costs, determine the internal failure costs.

Correct Answerverified$37,000 = $29,000 + $8,000

Schedule of Activity Costs ​ -Which of the following is not an external failure cost?

Correct AnswerverifiedShow Answer

In a lean environment, the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Correct AnswerverifiedShow Answer

Match each of the following activities with the appropriate quality cost classification (a-d). -Maintaining equipment A)Prevention cost B)Appraisal cost C)Internal failure cost D)External failure cost

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Pull manufacturing companies typically produce in small batch sizes.

Correct AnswerverifiedShow Answer

Employee involvement does not include performing any indirect manufacturing functions.

Correct AnswerverifiedShow Answer

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D

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True

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Schedule of Activity Costs -From the provided schedule of activity costs, determine the appraisal costs.

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$37,000 = $29,000 + $8,000

Schedule of Activity Costs -Which of the following is not an external failure cost?

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