Question 1

Which of the following is reduced by a just-in-time operations?

Inspection time and moving time

Only storage time

Moving time and processing time

Inspection time and processing time

Question 2

The value chain is also called the supply chain.

True

False

Question 3

In a just-in-time environment using backflush costing, the entry to record the use of materials for the month's production is debit __________ and credit __________.

Work in Process Inventory; Materials Inventory

Cost of Goods Sold; Finished Goods Inventory

Conversion Costs; Accounts Payable

No entry

Question 4

Activity-based management and lean operations can be used either together or separately to eliminate waste and manage activities.

True

False

Question 5

Typically, there are four levels in the cost hierarchy.

True

False

Question 6

In moving toward the just-in-time continuous work flow concept, a key objective is the reduction in the use of raw materials for manufacturing a product.

True

False

Question 7

A work cell is an autonomous production line that can perform only one required operation efficiently at a time.

True

False

Question 8

In the JIT environment, direct materials and conversion costs will vary significantly for each product in a work cell.

True

False

Question 9

Backflush costing aims at decreasing waste in the production process.

True

False

Question 10

Lean uses ABC to assign overhead costs to the product by using appropriate cost drivers.

True

False

Question 11

The value chain analysis allows a company to focus on its core competencies.

True

False

Question 12

Which of the following activities would be part of the supply chain of a manufacturer?

Shipping

Customer service

Parts manufacturing

Research and development

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Question 13

For a small coffee cafe, which of the following is a nonvalue-adding activity?

Importing coffee beans

Purchasing ingredients

Accounting for materials and conversion costs

Operating the drive-through window

Question 14

Which of the following is a batch-level activity?

Which of the following is a batch-level activity?

Testing products

Inspection

Implementation of engineering changes

Maintenance of the building

Question 15

Identify the following activities for an automobile manufacturer as

Value adding

[ Choose ] Research and devleopment Moving product

Nonvalue adding

[ Choose ] Research and devleopment Moving product