11. Which of the following is a disadvantage of lean production and just-in-time (JIT) manufacturing systems?
A. Increased customer delivery time
B. Increased product defects
C. Decreased flexibility of manufacturing facilities
D. Increased reliance on fewer suppliers
12. Which of the following statements is true regarding the lean production and just-in-time (JIT) manufacturing systems?
A. Customers are often less satisfied with the purchased product.
B. The number of product defects often increases.
C. The number of suppliers the company can purchase raw materials from, often increases.
D. The factory is often restructured where dissimilar machines are grouped together.
13. Which of the following is a characteristic of a lean production and just-in-time (JIT) manufacturing environment but not of a traditional manufacturing environment?
A. Increased inventory levels
B. Increased product defects
C. Increased reliance on a select number of suppliers
D. Increased production time
14. Which of the following is a effect of using a traditional production environment but not of a lean production and just-in-time (JIT) manufacturing environment?
A. Increase in the need for highly skilled labor.
B. Increase in the need for highly reliable suppliers.
C. Reduction in the motivation of the work force.
D. Reduction in the processing time.
15. Which of the following is a risk that would more likely be seen in a lean production and just-in-time (JIT) manufacturing environment than in a traditional production environment?
A. Reduced customer satisfaction due to product quality.
B. Reduced raw material supply bringing the production process to a halt.
C. Increased inventory storage costs.
D. Increased production time resulting in lost sales.
16. Lean production is focused on eliminating waste associated with all of the following except:
A. moving products farther than required.
B. down time caused by people waiting for work to do.
C. providing excessive customer service.
D. over-processing a product.
17. Which of the following statements is true regarding manufacturing costs?
A. They will be appear on the income statement as the product is made.
B. They will not appear on the income statement or the balance sheet until the product is completed.
C. They will appear on the balance sheet as an inventory cost until the product is sold.
D. They will appear on the balance sheet as an inventory cost after the product is sold.
18. Which of the following statements is false regarding nonmanufacturing costs?
A. They are incurred outside the factory.
B. They include selling and administrative costs.
C. They are not directly incurred to make a product.
D. They include indirect materials and indirect labor costs.
19. Which of the following types of employees would most likely have their wage be classified as direct labor?
A. Factory maintenance worker
B. Factory supervisor
C. Managerial accountant
D. Assembly-line factory worker
20. Which of the following types of employees would most likely have their wage be classified as indirect labor?
A. Factory supervisor
B. Managerial accountant
C. Salesperson
D. Machine operator
