Question 1

Inaccurate recording and processing of production activities can diminish the overall effectiveness of production operations.One of the application controls that can help to ensure accounting records are accurate is to restrict the rights of authorized users only to the portion of the database needed to complete job duties.What specific control can help achieve this objective?

Accepted Answer

A)  an access control matrix
B)  passwords and user IDs
C)  closed-loop verification
D)  bar-code scannersE) None of the above
F) C) and D)

Question 2

The expenses associated with quality assurance activities are ______ costs.

Accepted Answer

A)  prevention
B)  inspection
C)  internal failure
D)  external failureE) A) and D)
F) A) and B)

Question 3

The threat of loss of data exposes the company to

Accepted Answer

A)  the loss of assets.
B)  ineffective decision making.
C)  inefficient manufacturing.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 4

Dolly Salem owns and operates a bakery in Charleston,South Carolina.Each afternoon she prepares a shopping list that describes the number and variety of ingredients that she will purchase in the evening from a local food wholesaler.This list is an example of a(an)

Accepted Answer

A)  bill of materials.
B)  operations list.
C)  production order.
D)  materials requisition.
E)  move ticket.F) C) and E)
G) A) and C)

Question 5

The general threat of the loss of production data can greatly slow or halt production activity within an organization.To counteract such a major threat,which of the following organization controls should be implemented and maintained?

Accepted Answer

A)  store key master inventory and production order files on-site only to prevent their theft
B)  back up data files only after a production run has been physically completed
C)  access controls should apply to all terminals within the organization
D)  allow access to inventory records from any terminal within the organization to provide efficient data entryE) A) and D)
F) A) and B)

Question 6

Labor productivity is measured by the average product of labor; i.e.,the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by

Accepted Answer

A)  increasing productive capacity.
B)  increasing productive processing time.
C)  increasing yield.
D)  increasing all components of throughput.E) A) and C)
F) B) and D)

Question 7

The basic activities in the production cycle are

Accepted Answer

A)  product design and production operations.
B)  planning,scheduling,and cost accounting.
C)  raw materials requisitioning,planning,and scheduling.
D)  Both A and B are correct.E) A) and D)
F) A) and C)

Question 8

__________ are associated with testing to ensure that products meet quality standards.

Accepted Answer

A)  External failure costs
B)  Inspection costs
C)  Internal failure costs
D)  Prevention costsE) None of the above
F) A) and C)

Question 9

What are the two major types of cost accounting systems and what are the differences between the two?

Accepted Answer

Most companies will use either job-order...

Question 10

The accountant's role in the __________ step of production cycle activities is to understand how CIM affects the AIS.

Accepted Answer

A)  production operations
B)  product design
C)  planning and scheduling
D)  cost accounting methodsE) A) and C)
F) A) and B)

Question 11

What is activity-based costing (ABC)? How does it compare with the traditional costing methods? What are the benefits of activity-based costing?

Accepted Answer

Activity-based costing (ABC)traces costs...

Question 12

What role does the AIS play in the production cycle?

Accepted Answer

A company's AIS plays a vital role in th...

Question 13

Dolly Salem owns and operates a bakery in Charleston,South Carolina.She maintains a file of recipes that list the ingredients used to make her famous cakes and cookies.These recipes are examples of a(an)

Accepted Answer

A)  bill of materials.
B)  operations list.
C)  production order.
D)  materials requisition.
E)  move ticket.F) B) and C)
G) B) and D)

Question 14

For replacement of inventories and assets destroyed by fire or other disasters,an organization needs

Accepted Answer

A)  stand-by facilities.
B)  adequate insurance coverage.
C)  source data automation.
D)  All of the above are correct.E) All of the above
F) None of the above

Question 15

The bill of materials shows the __________ of each product component.

Accepted Answer

A)  part number and description
B)  quantity used
C)  quantity ordered
D)  both A and BE) C) and D)
F) A) and C)

Question 16

Whether a company uses an AIS,ERP,or incorporates some degree of CIM into its production process,it still needs to collect data about four basic facets of its production operations.The facet that impacts the company's human resource cycle the most is

Accepted Answer

A)  the amount of raw material used in a production order.
B)  the labor hours expended to complete a production order.
C)  the machine operations performed during a production order.
D)  the tracking of manufacturing overhead costs incurred for a production order.E) A) and C)
F) None of the above

Question 17

Throughput is a measure of

Accepted Answer

A)  production yield.
B)  production effectiveness.
C)  production capacity.
D)  production quality.E) None of the above
F) B) and C)

Question 18

MRP-II and JIT manufacturing systems both plan production in advance.What is the main difference between these two systems?

Accepted Answer

A)  the length of the planning horizon
B)  JIT uses long-term customer demand for planning purposes
C)  MRP-II relies on EDI
D)  There are no differences between the two systems.E) A) and B)
F) None of the above

Question 19

Job-time tickets are used to

Accepted Answer

A)  specify each production task.
B)  collect the time spent by a worker on a specific task.
C)  allocate machine costs.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 20

The second step in the production cycle is planning and scheduling.One of the methods of production planning is referred to as pull manufacturing.This method is also known as

Accepted Answer

A)  manufacturing resource planning (MRP) .
B)  just-in-time manufacturing system (JIT) .
C)  the economic order quantity (EOQ) system.
D)  ahead-of-time production implementation (ATPI) .E) C) and D)
F) B) and C)

Exam 12: The Production Cycle

The general threat of the loss of production data can greatly slow or halt production activity within an organization.To counteract such a major threat,which of the following organization controls should be implemented and maintained?

Correct Answer
verified

MRP-II and JIT manufacturing systems both plan production in advance.What is the main difference between these two systems?

Correct Answer
verified

The threat of loss of data exposes the company to

Correct Answer
verified

The bill of materials shows the __________ of each product component.

Correct Answer
verified

The second step in the production cycle is planning and scheduling.One of the methods of production planning is referred to as pull manufacturing.This method is also known as

Correct Answer
verified

The expenses associated with quality assurance activities are ______ costs.

Correct Answer
verified

The basic activities in the production cycle are

Correct Answer
verified

For replacement of inventories and assets destroyed by fire or other disasters,an organization needs

Correct Answer
verified

Labor productivity is measured by the average product of labor; i.e.,the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by

Correct Answer
verified

The accountant's role in the __________ step of production cycle activities is to understand how CIM affects the AIS.

Correct Answer
verified

Dolly Salem owns and operates a bakery in Charleston,South Carolina.She maintains a file of recipes that list the ingredients used to make her famous cakes and cookies.These recipes are examples of a(an)

Correct Answer
verified

What is activity-based costing (ABC)? How does it compare with the traditional costing methods? What are the benefits of activity-based costing?

Correct Answer
verified
Activity-based costing (ABC)traces costs...
View Answer

Throughput is a measure of

Correct Answer
verified

Correct Answer
verified

What role does the AIS play in the production cycle?

Correct Answer
verified
A company's AIS plays a vital role in th...
View Answer

Whether a company uses an AIS,ERP,or incorporates some degree of CIM into its production process,it still needs to collect data about four basic facets of its production operations.The facet that impacts the company's human resource cycle the most is

Correct Answer
verified

What are the two major types of cost accounting systems and what are the differences between the two?

Correct Answer
verified
Most companies will use either job-order...
View Answer

Dolly Salem owns and operates a bakery in Charleston,South Carolina.Each afternoon she prepares a shopping list that describes the number and variety of ingredients that she will purchase in the evening from a local food wholesaler.This list is an example of a(an)

Correct Answer
verified

Job-time tickets are used to

Correct Answer
verified

__________ are associated with testing to ensure that products meet quality standards.

Correct Answer
verified

Exam 12: The Production Cycle

The general threat of the loss of production data can greatly slow or halt production activity within an organization.To counteract such a major threat,which of the following organization controls should be implemented and maintained?

Correct AnswerverifiedShow Answer

MRP-II and JIT manufacturing systems both plan production in advance.What is the main difference between these two systems?

Correct AnswerverifiedShow Answer

The threat of loss of data exposes the company to

Correct AnswerverifiedShow Answer

The bill of materials shows the __________ of each product component.

Correct AnswerverifiedShow Answer

The second step in the production cycle is planning and scheduling.One of the methods of production planning is referred to as pull manufacturing.This method is also known as

Correct AnswerverifiedShow Answer

The expenses associated with quality assurance activities are ______ costs.

Correct AnswerverifiedShow Answer

The basic activities in the production cycle are

Correct AnswerverifiedShow Answer

For replacement of inventories and assets destroyed by fire or other disasters,an organization needs

Correct AnswerverifiedShow Answer

Labor productivity is measured by the average product of labor; i.e.,the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by

Correct AnswerverifiedShow Answer

The accountant's role in the __________ step of production cycle activities is to understand how CIM affects the AIS.

Correct AnswerverifiedShow Answer

Dolly Salem owns and operates a bakery in Charleston,South Carolina.She maintains a file of recipes that list the ingredients used to make her famous cakes and cookies.These recipes are examples of a(an)

Correct AnswerverifiedShow Answer

What is activity-based costing (ABC)? How does it compare with the traditional costing methods? What are the benefits of activity-based costing?

Correct AnswerverifiedActivity-based costing (ABC)traces costs...View AnswerShow Answer

Throughput is a measure of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What role does the AIS play in the production cycle?

Correct AnswerverifiedA company's AIS plays a vital role in th...View AnswerShow Answer

Whether a company uses an AIS,ERP,or incorporates some degree of CIM into its production process,it still needs to collect data about four basic facets of its production operations.The facet that impacts the company's human resource cycle the most is

Correct AnswerverifiedShow Answer

What are the two major types of cost accounting systems and what are the differences between the two?

Correct AnswerverifiedMost companies will use either job-order...View AnswerShow Answer

Dolly Salem owns and operates a bakery in Charleston,South Carolina.Each afternoon she prepares a shopping list that describes the number and variety of ingredients that she will purchase in the evening from a local food wholesaler.This list is an example of a(an)

Correct AnswerverifiedShow Answer

Job-time tickets are used to

Correct AnswerverifiedShow Answer

__________ are associated with testing to ensure that products meet quality standards.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Activity-based costing (ABC)traces costs...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A company's AIS plays a vital role in th...
View Answer

Correct Answer
verified

Correct Answer
verified
Most companies will use either job-order...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified