1. Capital budgeting is both a decision making and control tool. Which of the following is an example of capital budgeting as a control tool?

A.A company uses capital budgeting techniques to evaluate a group of prospective alternative projects.

B.A large manufacturer sets up a "capital relief" fund to help supplement sustainability projects that would not meet targeted rates of returns without the capital relief fund assistance.

C.A company's capital project is not meeting the level of profitability expected, will not meet the targeted NPV, and is abandoned.

D.When considering capital expenditures, a company looks at a minimum of six potential (alternative) projects.

2. In lean accounting environments, it is critical that work-in-process and finished goods accounting be accurate for accurate financial accounting and pricing decisions.

True

False

3. Which of the following statements best defines manufacturing cells?

A.They are manufacturing centers which focuses on production of a single product and in which workers focus on master one skill so as to be efficient and effective in their work

B.They are manufacturing areas that use a "push-through" approach whereby finished goods are manufactured on the basis of demand forecasts.

C.They are production centers positioned in various areas throughout a production facility, close to the associated talent (direct laborers) in which goods are manufactured only after receiving customer orders.

D.They are work areas with different types of equipment grouped together to make related products and to minimize handling costs

4. A "push-through" system, often described as a materials requirement planning system, focuses first on the forecasted amount and timing of finished goods and then determines the demand for materials components and subassemblies at each of the prior stages of production.

True

False