Question :
51)
Factors that relevant in a JIT system, but not for : 1196176
51)
Factors that are relevant in a JIT system, but not for the EOQ model, include 51)
______ A)
stockout costs. B)
quality of materials. C)
carrying costs. D)
quality of materials, timeliness of deliveries, and stockout costs. E)
timeliness of deliveries.
52)
Which of the following would be expected when using a supply-chain approach to inventory management? 52)
______ A)
fewer rush orders for manufacturing, less manufacturing of goods not subsequently ordered, and lower inventory levels B)
less manufacturing of goods not subsequently ordered C)
more stockouts (but at a lower cost overall) D)
fewer rush orders for manufacturing E)
more stockouts, less manufacturing of goods not subsequently ordered, and fewer rush orders for manufacturing
53)
Which of the following is NOT a component in a materials requirement planning system? 53)
______ A)
standard construction times for all components produced externally B)
demand forecasts for finished goods C)
bill of materials filed D)
lead times of all items to be purchased E)
master production schedule
54)
Which of the following methods is used when production is driven by downstream work stations? 54)
______ A)
a just-in-time system B)
a station-priority system C)
a product-need system D)
safety system E)
an activity-based systems
55)
All of the following are potential financial benefits of just-in-time EXCEPT 55)
______ A)
lower investments in inventories. B)
reducing the risk of rework. C)
reducing manufacturing lead time. D)
higher investments in “efficient” storage space. E)
reducing the handling costs of inventories.
56)
Which of the following would NOT be typical when a JIT production system is used? 56)
______ A)
JIT purchasing B)
workers who specialize in one function or operation C)
manufacturing cells D)
TQM E)
emphasis on reducing setup time
57)
The management accountant must design performance measures to evaluate and control JIT production. One of the dominant sources of information that the management accountant might use for this would be the personal observations of production line workers and team leaders. Another dominant source of information would be 57)
______ A)
total setup time for machines / total number of units started and completed. B)
number of units sent to scrap / total scrap costs. C)
nonfinancial measures of time, inventory and quality. D)
material cost variances. E)
inventory turnover ratio.
58)
Traditional budgeted and standard costing systems use 58)
______ A)
synchronous tracking. B)
variable costing. C)
post-deduct costing. D)
delayed costing. E)
backflush costing.
Use the information below to answer the following question(s).
Fun ‘N’ Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, “Conversion Costs.” Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.
Conversion costs – January$
400,000
Direct materials purchased – January$1,070,000
Units produced – January58,800
Units sold – January41,800
59)
Which of the following journal entries properly records the purchase of direct materials? 59)
______ A)
Inventory: Raw and in Process Control$1,070,000
Conversion Costs$1,070,000 B)
Accounts Payable Control$1,070,000
Inventory: Raw and in Process Control$1,070,000 C)
Inventory: Raw and in Process Control$1,070,000
Accounts Payable Control$1,070,000 D)
Accounts Payable Control$1,070,000
Finished Goods Inventory$1,070,000 E)
Conversion Costs$1,070,000
Inventory: Raw and in Process Control$1,070,000
60)
Which of the journal entries properly records conversion costs? 60)
______ A)
Cost of Goods Sold$400,000
Conversion Costs$400,000 B)
Various accounts$400,000
Conversion Costs$400,000 C)
Inventory: Direct Materials$400,000
Conversion Costs$400,000 D)
Conversion Costs$400,000
Various accounts$400,000 E)
Conversion Costs$400,000
Inventory: Direct Materials$400,000
