Question 1

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) A) and D)

Question 2

Traditional manufacturing emphasizes all of the following except

Accepted Answer

A)   team oriented employee involvement
B)   process-oriented layout
C)   push manufacturing
D)   cost accumulation by departmentE) A) and B)
F) A) and C) A

Question 3

Lean manufacturing is also called make-to-stock manufacturing.

Accepted Answer

A) True 
 B)False

Question 4

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

Accepted Answer

A) True 
 B)False

Question 5

Lead time is the process time between start and completion.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

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) None of the above
F) B) and C)

Question 8

Reducing wait time is not linked to reducing inventory.

Accepted Answer

A) True 
 B)False  False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)   $30,000
B)   $50,000
C)   $64,000
D)   $85,000E) A) and B)
F) A) and C)

Question 11

Which of the following is characteristic of the traditional cost system?

Accepted Answer

A)   Many work in process account transactions.
B)   Reliance on financial performance measures.
C)   Many process control points.
D)   All of the above.E) B) and D)
F) B) and C)

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

Christmas Express makes wreaths in batch sizes of 12. The cutting & assembly process takes 8 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 12 minutes to move the wreaths from the cutting & assembly process to the decorating process. 
(a) Compute the value-added, non-value-added, and the total lead time of the wreath process. 
(b) Compute the value-added ratio.  Round to the nearest decimal.

Accepted Answer

(a) <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> <br>(b) ...

Question 14

Which of the following results in long lead time?

Accepted Answer

A)   long setup times
B)   large batch sizes
C)   large inventories
D)   all of the aboveE) A) and D)
F) None of the above

Question 15

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

Accepted Answer

A) True 
 B)False  False

Question 16

Lean manufacturing is also called make-to-order manufacturing.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A make-to-order company matches its production schedules to actual customer orders.

Accepted Answer

A) True 
 B)False

Question 19

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 level.
D)   the lack of work in process inventory creates problems.E) C) and D)
F) A) and B)

Question 20

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow:  The journal entry to record May's conversion costs will include:

Accepted Answer

A)   a credit to Work in Process Inventory
B)   a debit to Raw Materials Inventory
C)   a credit to Raw and In Process Inventory
D)   a debit to Raw and In Process InventoryE) C) and D)
F) A) and B)

Exam 12: Lean Manufacturing and Activity Analysis

Which of the following is not an external failure cost?

Correct Answer
verified

Traditional manufacturing emphasizes all of the following except

Correct Answer
verified
A

Lean manufacturing is also called make-to-stock manufacturing.

Correct Answer
verified

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

Correct Answer
verified

Lead time is the process time between start and completion.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Reducing wait time is not linked to reducing inventory.

Correct Answer
verified
False

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following is characteristic of the traditional cost system?

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
verified
(a)
(b) ...
View Answer

Which of the following results in long lead time?

Correct Answer
verified

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

Correct Answer
verified
False

Lean manufacturing is also called make-to-order manufacturing.

Correct Answer
verified

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

Correct Answer
verified

A make-to-order company matches its production schedules to actual customer orders.

Correct Answer
verified

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

Correct Answer
verified

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow: The journal entry to record May's conversion costs will include:

Correct Answer
verified

Exam 12: Lean Manufacturing and Activity Analysis

Which of the following is not an external failure cost?

Correct AnswerverifiedShow Answer

Traditional manufacturing emphasizes all of the following except

Correct AnswerverifiedA

Lean manufacturing is also called make-to-stock manufacturing.

Correct AnswerverifiedShow Answer

The lean manufacturing philosophy views inventory as an unnecessary waste of resources.

Correct AnswerverifiedShow Answer

Lead time is the process time between start and completion.

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

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

Correct AnswerverifiedShow Answer

Reducing wait time is not linked to reducing inventory.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is characteristic of the traditional cost system?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct Answerverified(a) (b) ...View AnswerShow Answer

Which of the following results in long lead time?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

Lean manufacturing is also called make-to-order manufacturing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A make-to-order company matches its production schedules to actual customer orders.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow: The journal entry to record May's conversion costs will include:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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A

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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False

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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(a)
(b) ...
View Answer

Correct Answer
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Correct Answer
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False

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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