Finance Questions
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One of the requirements for a JIT system to be successful is: A. cyclical production B. adequate inventory stock C. coupling it with job order costing D. high quality and balanced work loads E. all of the above
In a JIT system, if the rate of output is doubled while the number of units in process is cut in half, then the speed of the system has been: A. reduced by 25% B. doubled C. reduced by 50% D. quadrupled E. none of the above
Under a JIT approach to purchasing, the ideal number of vendors for each material is: A. two B. less than six C. one D. as many as can supply quality goods E. none of the above
The cost accounting system that is noted for its lack of detailed tracking of work in process during the accounting period is: A. process costing B. job order costing C. standard costing D. actual costing E. backflush costing
To backflush materials cost from Raw and In Process (RIP) to Finished Goods, the calculation would be: A. materials in ending RIP inventory plus materials received during the period minus materials in the beginning RIP inventory B. materials in ending finished goods inventory plus materials cost transferred from RIP minus materials in beginning finished goods inventory C. materials in beginning finished goods inventory plus materials cost transferred from RIP minus materials in ending finishe
Advantages that result from reducing raw materials inventory include all of the following except: A. a decreased possibility of not being able to produce a unit when required B. a need for less storage space C. a reduced risk of obsolescence D. a reduced risk of damaged materials E. all of the above are advantages
When cost relationships are linear, total variable prime costs will vary in proportion to changes in a. direct labor hours. b. total material cost. c. total overhead cost. d. production volume
Budgeting supports the planning process by encouraging all of the following activities except: a. requiring all organizational units to establish their goals for the upcoming period b. increasing the motivation of managers and employees by providing agreed-upon expectations c. directing and coordinating operations during the period d. improving overall decision making by considering all viewpoints, options, and cost reduction possibilities
The term "relevant range" as used in cost accounting means the range over which a. costs may fluctuate. b. cost relationships are valid. c. production may vary. d. relevant costs are incurred
All of the following are JIT performance measures, except: A. capacity utilization B. cycle time efficiency C. inventory turnover D. unscheduled maintenance downtime E. number of defects
A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n) a. expired cost. b. fixed cost. c. variable cost. d. mixed cost
Management accountants usually provide for a minimum cash balance in their cash budgets for which of the following reasons: a. stockholders demand a minimum cash balance b. stockholders demand a minimum cash balance to have funds available for major capital expenditures c. it provides a safety buffer for variations in estimates d. to have funds available for major capital expenditures
Which of the following competitive strategies is least profitable? a. differentiation c. confrontation b. cost leadership d. price fixing
If 500 units are produced per day and 2,000 units are in process at any time, the throughput time is: A. 1/2 day B. 1/4 day C. two days D. four days E. none of the above
The objective of reducing inventory to zero is possible if all of the following conditions are present, except: A. low or insignificant setup costs B. minimum lead times C. long setup times D. balanced and level work loads E. no interruptions due to stockouts
The JIT production ideal is a batch size of: A. one hundred B. ten C. one D. zero E. none of the above
Which classification of costs is most relevant for income statements to be used internally? a. Behavior. b. Method of payment. c. Function. d. Object.
Cost accounting is necessitated by a. the high degree of conversion found in certain businesses. b. regulatory requirements for manufacturing companies. c. management's need to be aware of all production activities. d. management's need for information to be used for planning and controlling activities.
A just-in-time manufacturer is more likely than a conventional manufacturer toa. receive more frequent deliveries of materials. b. spend less money on advertising. c. need workers with fewer skills. d. all of the above
The continuing reduction of inventories is achieved by all of the following steps except: A. inventories are reduced until a problem is discovered B. once the problem is defined the inventory level is increased to keep the system operating smoothly C. the problem is analyzed and practical ways are identified to reduce it D. once the problem is removed, the inventory level is increased until another problem is discovered E. all of the above steps are required