Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

From the above schedule of activity costs, determine the external failure costs.

Accepted Answer

A)   $39,000
B)   $19,000
C)   $12,000
D)   $31,000E) None of the above
F) A) and B)

Question 3

Which of the following is (are)  objective(s)  of lean manufacturing?

Accepted Answer

A)   eliminating waste
B)   increasing inventory levels
C)   increased production speed
D)   all of the aboveE) B) and C)
F) A) and D)

Question 4

From the above schedule of activity costs, determine the total activity cost.

Accepted Answer

A)   $62,000
B)   $179,000
C)   $94,000
D)   $241,000E) A) and C)
F) B) and C)

Question 5

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

Accepted Answer

A)   $50,000
B)   $23,000
C)   $73,000
D)   $104,000E) All of the above
F) C) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Axelgold Company produces parts for the auto industry. Part X2 is machined in Department #1, which has the following budgeted conversion costs:  
All costs are driven by machine hours. Total possible hours for the year are 2,800. It takes .03 hours to machine one unit of Part X2. 
(a) Compute Department #1's budgeted cell conversion cost rate for the current year. 
Round to the nearest cent. 
(b) Compute Part X2's budgeted cell conversion cost per unit.  Round to the nearest cent.

Accepted Answer

The answer of Axelgold Company produces parts for the auto...

Question 8

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Accepted Answer

A) True 
 B)False

Question 9

Accounting for lean operations requires fewer transactions because

Accepted Answer

A)   large batches of inventory are combined in a smaller number of transactions.
B)   costs are accumulated in one department and then transferred to the next department.
C)   combined material and conversion costs are transferred to finished goods.
D)   costs are transferred from department to department allowing for better controls in costs.E) A) and B)
F) None of the above

Question 10

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

Question 11

From the above schedule, calculate the: 
(a) prevention 
(b) appraisal costs.

Accepted Answer

The answer of  
From the above schedule, calculate the:...

Question 12

In a lean system, there are more transactions to record than there are in a traditional system.

Accepted Answer

A) True 
 B)False

Question 13

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

Accepted Answer

A) True 
 B)False

Question 14

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Accepted Answer

A) True 
 B)False

Question 15

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 production costs transferred to Finished Goods during August.

Accepted Answer

A)   $369,840
B)   $408,480
C)   $428,800
D)   $473,600E) C) and D)
F) A) and C)

Question 16

From the above schedule, calculate: 
(a) value-added   
(b) non-value-added costs.

Accepted Answer

The answer of  
From the above schedule, calculate: 
(a)...

Question 17

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 these choices would fall in line with the college goal.E) A) and B)
F) A) and C)

Question 18

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 19

In a lean environment, process problems are less visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 20

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Accepted Answer

A) True 
 B)False

Exam 12: Lean Manufacturing and Activity Analysis

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

Correct Answer
verified

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Correct Answer
verified

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Correct Answer
verified

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

Correct Answer
verified

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

Correct Answer
verified

Correct Answer
verified

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Correct Answer
verified

From the above schedule of activity costs, determine the external failure costs.

Correct Answer
verified

From the above schedule, calculate: (a) value-added (b) non-value-added costs.

Correct Answer
verified

Accounting for lean operations requires fewer transactions because

Correct Answer
verified

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 Answer
verified

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 Answer
verified

In a lean system, there are more transactions to record than there are in a traditional system.

Correct Answer
verified

From the above schedule of activity costs, determine the total activity cost.

Correct Answer
verified

Which of the following is (are) objective(s) of lean manufacturing?

Correct Answer
verified

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

Correct Answer
verified

In a lean environment, process problems are less visible than they are in a traditional environment.

Correct Answer
verified

From the above schedule, calculate the: (a) prevention (b) appraisal costs.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 12: Lean Manufacturing and Activity Analysis

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

Correct AnswerverifiedShow Answer

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Correct AnswerverifiedShow Answer

A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Push manufacturing (made-to-stock) is a traditional approach to manufacturing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.

Correct AnswerverifiedShow Answer

From the above schedule of activity costs, determine the external failure costs.

Correct AnswerverifiedShow Answer

From the above schedule, calculate: (a) value-added (b) non-value-added costs.

Correct AnswerverifiedShow Answer

Accounting for lean operations requires fewer transactions because

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

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 system, there are more transactions to record than there are in a traditional system.

Correct AnswerverifiedShow Answer

From the above schedule of activity costs, determine the total activity cost.

Correct AnswerverifiedShow Answer

Which of the following is (are) objective(s) of lean manufacturing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a lean environment, process problems are less visible than they are in a traditional environment.

Correct AnswerverifiedShow Answer

From the above schedule, calculate the: (a) prevention (b) appraisal costs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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