cost accounting

Which of the following is NOT true about backflush costing? Direct labor is usually insignificant in a highly automated system, so is not cost effective to account for it separately. Production costs are attached to products as they move through work in process. Different companies may choose different trigger points. A singte account is used for raw and in-process materials because materials are issued to production when received from the supplier. Question 2 Which of the following equations determines the total annual carrying costs when no safety stock is kept? Cost of placing an order x order quantity Cost of placing an order x number of orders per year Unit carrying costs for one year x one-half of the order quantity Cost of placlng an order x one-half of the order quantity Question 3 Inventory management identifies an economic order quantity that minimizes the costs of ordering. maxtmizes the stockout costs. maximizes the cost of carring imentore. Inventory management identifies an economic order quantity that minimizes the costs of ordering: maximizes the stockout costs. maximizes the cost of carring imventory. minimizes the total costs of ordering and carrying inventory. Question 4 1pts The JIT approach to inventory management results in higher inventory levels, but reduces ordering and set-up costs. results in lower inwentory costs. al lows greater flowbility as to when products can be manufactured. None of these is correct. Question 5 1 pts Safety stock is a nonvalue added activity and should never be considered not constidered whencatcutating the reorder point: Fextra inwemory carried to sorve as insurance against fluctuatine demand. the cost of holdine inventery