Question 1

Mass customization can be achieved through the use of

Accepted Answer

A)   activity-based costing.
B)   just-in-time inventory.
C)   flexible manufacturing systems.
D)   all of the above.

Question 2

A chart that indicates each step in a production process is referred to as a _________________________.

Accepted Answer

The answer of A chart that indicates each step in...

Question 3

A just-in-time manufacturing process should have substantially less of which of the following than a traditional manufacturing process?

Accepted Answer

A)   yes yes yes yes
B)   yes no no yes
C)   yes yes no yes
D)   no yes yes no

Question 4

Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
 Refer to Parrish Company. Using ABC, the cost per unit of IPods is approximately:

Accepted Answer

A)   $ 2.40
B)   $ 3.90
C)   $ 6.60
D)   $10.59

Question 5

Unit level costs occur once for each unit produced.

Accepted Answer

A) True 
 B)False

Question 6

A(n) _________________________ measures the resources consumed by a manufacturing process.

Accepted Answer

The answer of A(n) _________________________ measures the resources consumed by...

Question 7

Which of the following is typically regarded as a cost driver in traditional accounting practices?

Accepted Answer

A)   number of purchase orders processed
B)   number of customers served
C)   number of transactions processed
D)   number of direct labor hours worked

Question 8

In the "new era" of manufacturing, good performance indicators are

Accepted Answer

A)   production-based.
B)   sales-based.
C)   cost-based.
D)   consumer-based.

Question 9

Traditional standard costs are inappropriate measures for performance evaluation in the "new era" of manufacturing because they

Accepted Answer

A)   build in allowances for non-value-adding activities.
B)   are based on historical information.
C)   don't reflect current costs.
D)   are ideal goals.

Question 10

For a company that manufactures candy, how would the cost of sugar be classified?

Accepted Answer

A)   Yes No
B)   No Yes
C)   Yes Yes
D)   No No

Question 11

There is a positive relationship between value-added (VA) activities and manufacturing cycle efficiency (MCE).

Accepted Answer

A) True 
 B)False

Question 12

Simultaneous engineering helps companies accomplish which of the following?

Accepted Answer

A)   no no
B)   yes yes
C)   yes no
D)   no yes

Question 13

In activity-based costing, final cost allocations assign costs to

Accepted Answer

A)   departments.
B)   processes.
C)   products.
D)   activities.

Question 14

Greenspan Company Greenspan Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system. The annual production and sales volume of digital cameras is 10,000 units and of video cameras is 8,000 units. Direct costs for the digital cameras are $122; for the video cameras, direct costs are $153.
For overhead costs, there are three activity cost pools with the following expected activities and estimated total costs:
 Refer to Greenspan Company. Using ABC, the total cost per digital camera is approximately:

Accepted Answer

A)   $126.82
B)   $127.11
C)   $130.55
D)   $131.50

Question 15

Video Corporation Video Corporation has two product lines: LCD televisions and projection televisions. The company has budgeted the following production and overhead costs for the upcoming year:
 Refer to Video Corporation. If the company uses total direct labor hours to allocate factory overhead, the materials handing cost allocated to projection TVs would be:

Accepted Answer

A)   $35,000
B)   $45,000
C)   $46,875
D)   $51,923

Question 16

Which of the following statements about business-value-added activities (BVAs)  is true?

Accepted Answer

A)   BVAs reflect the same processes in all organizations.
B)   A process map will not reflect BVAs because such activities are not essential to process performance.
C)   BVAs are actually value-added activities of an organization that relate to administrative processes.
D)   It is impossible to eliminate all BVAs in an organization.

Question 17

A traditional costing system has fewer cost pools that does an activity-based costing (ABC) system.

Accepted Answer

A) True 
 B)False

Question 18

Discuss how activity-based costing and activity based management support continuous improvement in an organization.

Accepted Answer

Activity based costing and activity base...

Question 19

Global competition has forced American industry to

Accepted Answer

A)   seek increased governmental regulation.
B)   improve product quality and customer service.
C)   narrow product lines.
D)   decrease its social responsibility.

Question 20

Describe the two-step process by which costs are allocated in an ABC system.

Accepted Answer

Costs must be accumulated in the general...

Exam 4: Activity-Based Management and Activity-Based Costing

Discuss how activity-based costing and activity based management support continuous improvement in an organization.

Correct Answer
verified
Activity based costing and activity base...
View Answer

A chart that indicates each step in a production process is referred to as a _________________________.

Correct Answer
verified

In the "new era" of manufacturing, good performance indicators are

Correct Answer
verified

Correct Answer
verified

In activity-based costing, final cost allocations assign costs to

Correct Answer
verified

A traditional costing system has fewer cost pools that does an activity-based costing (ABC) system.

Correct Answer
verified

Simultaneous engineering helps companies accomplish which of the following?

Correct Answer
verified

A just-in-time manufacturing process should have substantially less of which of the following than a traditional manufacturing process?

Correct Answer
verified

Unit level costs occur once for each unit produced.

Correct Answer
verified

Correct Answer
verified

Describe the two-step process by which costs are allocated in an ABC system.

Correct Answer
verified
Costs must be accumulated in the general...
View Answer

Global competition has forced American industry to

Correct Answer
verified

Which of the following statements about business-value-added activities (BVAs) is true?

Correct Answer
verified

For a company that manufactures candy, how would the cost of sugar be classified?

Correct Answer
verified

Mass customization can be achieved through the use of

Correct Answer
verified

Traditional standard costs are inappropriate measures for performance evaluation in the "new era" of manufacturing because they

Correct Answer
verified

Correct Answer
verified

A(n) _________________________ measures the resources consumed by a manufacturing process.

Correct Answer
verified

Which of the following is typically regarded as a cost driver in traditional accounting practices?

Correct Answer
verified

There is a positive relationship between value-added (VA) activities and manufacturing cycle efficiency (MCE).

Correct Answer
verified

Exam 4: Activity-Based Management and Activity-Based Costing

Discuss how activity-based costing and activity based management support continuous improvement in an organization.

Correct AnswerverifiedActivity based costing and activity base...View AnswerShow Answer

A chart that indicates each step in a production process is referred to as a _________________________.

Correct AnswerverifiedShow Answer

In the "new era" of manufacturing, good performance indicators are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In activity-based costing, final cost allocations assign costs to

Correct AnswerverifiedShow Answer

A traditional costing system has fewer cost pools that does an activity-based costing (ABC) system.

Correct AnswerverifiedShow Answer

Simultaneous engineering helps companies accomplish which of the following?

Correct AnswerverifiedShow Answer

A just-in-time manufacturing process should have substantially less of which of the following than a traditional manufacturing process?

Correct AnswerverifiedShow Answer

Unit level costs occur once for each unit produced.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe the two-step process by which costs are allocated in an ABC system.

Correct AnswerverifiedCosts must be accumulated in the general...View AnswerShow Answer

Global competition has forced American industry to

Correct AnswerverifiedShow Answer

Which of the following statements about business-value-added activities (BVAs) is true?

Correct AnswerverifiedShow Answer

For a company that manufactures candy, how would the cost of sugar be classified?

Correct AnswerverifiedShow Answer

Mass customization can be achieved through the use of

Correct AnswerverifiedShow Answer

Traditional standard costs are inappropriate measures for performance evaluation in the "new era" of manufacturing because they

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A(n) _________________________ measures the resources consumed by a manufacturing process.

Correct AnswerverifiedShow Answer

Which of the following is typically regarded as a cost driver in traditional accounting practices?

Correct AnswerverifiedShow Answer

There is a positive relationship between value-added (VA) activities and manufacturing cycle efficiency (MCE).

Correct AnswerverifiedShow Answer

Correct Answer
verified
Activity based costing and activity base...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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verified

Correct Answer
verified

Correct Answer
verified
Costs must be accumulated in the general...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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