Homework 9/15/18 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or ansen I1) A systematie problem-solving philosophy that encourages front line workers to achieve zero defects its known as: 1) A) total quality management (TQM). B) activity based management (ABM) C) just-in-time (JIT). D) None of these. 2) The benefits of a just-in-time system would include all of the following except 2) A) improved customer satisfaction. B) decrease in the number of sappliers C) increased warchousing costs. D) reduced inventory holding costs 3) Steuben Company produces dog houses. During the current year, Sicuben Company incurred the following costs: Rent on manufacturing facility S 250,000 150,000 110,000 50,000 30,000 170,000 Office manager's salary Wages of factory machine operators Depreciation on manufacturing equipment Insurance and taxes on selling and administrative offices Direct materials purchased and used Based on the above information, which of the following would not be treated as a product cost: 3) A) salaries of factory machine operators B) rent expense incurred on manufacturing facility C) depreciation on manufacturing equipment D) office manager's salary 4) Which of the following statements concerning manufacturing costs is incorreet?4) A) The cost of direct materials can be readily traced to products. B) Depreciation on manufacturing equipment is a period cost. C) Direct labor costs are recorded initially in an inventory account. D) All salaries incurred by the sales department are expensed as incurred. 5) Which of the following best represents a characteristic of managerial A) Information is based on estimates and is bounded by relevance and timeliness. B) Information is regulated by the Securities and Exchange Commission. C) Information is characterized by reliability and objectivity. D) Information is historically based and reported annually accounting? 5) 6) During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements 6) assuming number of units produced exceeded number of units sold during the period? B) Cash flows from operations are understated. C) Gross margin is unaffected A) Inventory is understated