Finance Questions

Of the following, the only activity that adds value to a product is: A. processing time B. moving time C. waiting time D. inspection time E. all of the above

Which is NOT a common accounting classification of costs? a. By the method of payment for the expenditure. b. By the objective of expenditure. c. By behavior. d. By the function incurring the expenditure.

In production process with a machine constraint, if a quality control point is to be established, it should be set up a. within the machine's processes b. directly after the machine has performed its functions c. immediately before the machine d. All of the above

One characteristic of the conventional a. flexible manufacturing systems b. manufacturing cells c. a just-in-case philosophy d. a high degree of quality control

In a JIT system, velocity is inversely related to: A. backflushing B. throughput time C. acceleration D. zero inventory production E. none of the above

A firm that is competing using a _______________________ strategy is attempting to create a perception of uniqueness that will permit a higher selling price. a. value chain c. lowest cost b. lead time d. differentiation

The theory of constraints can a. identify what limitations exist with raw material suppliers b. follows a methodology similar to linear programming c. be ignored since it assumes too many estimates in the production cycle d. show where bottlenecks exist and sets the limit of output to these bottlenecks

All of the following are terms used to describe the JIT effort to reduce inventories of work in process and raw materials, except: A. backflush production B. stockless production C. lean production D. ZIP production . none of the above are appropriate terms

A cost leadership strategy emphasizes a. product features b. low prices c. just-in-time production capabilities d. short-run opportunities for cost minimization

From a cost management view, research and development cost represents a. a life-cycle investment b. a period expense c. an unearned revenue d. a risk reserve

Which of the following statements is (are) true? a. If the standard to produce a given amount of product is 2,000 units of direct materials at ₱12 and the actual was 1,600 units at ₱13, the direct materials quantity variance was ₱5,200 favorable. b. If the standard to produce a given amount of product is 1,000 units of direct materials at ₱11 and the actual was 800 units at ₱12, the direct materials price variance was ₱800 unfavorable. c. both a and b d. neither a nor b

Which of the following is not a use of the cost of production report? a. To help managers control operations. b. To help managers isolate problems. c. To project production. d. To help managers to improve operations.

A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of these costs is termed a: a. factory overhead production report b. manufacturing cost report c. process cost report d. cost of production report

. Which of the following is not a reason for a direct materials quantity variance? a. Malfunctioning equipment b. Purchasing of inferior raw materials c. Material requiring rework d. Spoilage of materials

The set of processes that transform raw materials into finished products is known as a a. differentiation strategy b. flexible manufacturing system c. lowest cost strategy d. value chain

Value engineering seeks to obtain increased a. product life-cycle and reduced direct labor inputs b. planning team membership and reduced time-tomarket c. product performance ratio and reduced substitute goods d. product functionality and reduced costs

Planning and control are a. different names for the same thing. b. the basic functions of management. c. described equally well by the terms "decision making" and "performance evaluation." d. exemplified by, respectively, financial statements and budgeting

Kaizen means a. doing it the Japanese way b. continuous improvement c. employee empowerment d. implementation of a centralized organizational structure

Which activity is NOT normally performed by managerial accountants? a. Assisting managers to interpret data in managerial accounting reports.b. Designing systems to provide information for internal and external reports. c. Gathering data from sources other than the accounting system. d. Deciding the best level of inventory to be maintained.

Relative sales value at split-off is used to allocate: a. Cost Beyond Split-Off b. Joint Costs c. Both a and b d. Neither a nor b