Question 1

In a production planning system,the production status file is used as an input for which of the following groups of applications?

Accepted Answer

A)   Scheduling and cost accounting
B)   Cost accounting and planning
C)   Scheduling and reporting
D)   Reporting and cost accountingE) B) and C)
F) None of the above

Question 2

Why is it important to design control systems in a quick-response manufacturing system before the manufacturing system is implemented?

Accepted Answer

Controls should be included in the des...

Question 3

The ________ in MRP is used comprehensively to include all types of inventories.

Accepted Answer

The answer of The ________ in MRP is used comprehensively...

Question 4

Which is the best way for a company to prevent having outdated inventory on hand?

Accepted Answer

A)   Store inventory securely
B)   Classify inventory according to location in the company's records
C)   Evaluate inventory turnover
D)   Write down the inventory balance when a warehouse employee finds outdated inventoryE) A) and D)
F) A) and B)

Question 5

Lean production is a production system in which parts are produced only as they are required in subsequent operations.

Accepted Answer

A) True 
 B)False

Question 6

The best sources of information necessary to calculate an EOQ are prior purchase orders.

Accepted Answer

A) True 
 B)False

Question 7

Systems that include software for defining the manufacturing process or tools to increase productivity are known as ________ systems.

Accepted Answer

The answer of Systems that include software for defining the...

Question 8

Activity-based costing (ABC) systems allocate overhead differently than traditional cost accounting systems.The difference between an ABC and a traditional cost accounting system is that

Accepted Answer

A)   traditional systems calculate several overhead rates, one for each manufacturing activity.
B)   an ABC system uses a single allocation overhead rate.
C)   ABC systems calculate several overhead rates, one for each manufacturing activity.
D)   a traditional cost accounting system uses two overhead allocation rates: one for actual activity and one for estimates (or standards) .E) A) and D)
F) B) and C)

Question 9

The file or record that is essentially a subsidiary ledger for tangible assets,such as land,buildings,machinery,and equipment,is the

Accepted Answer

A)   fixed assets register.
B)   fixed assets control ledger.
C)   property master ledger.
D)   property control ledger.E) C) and D)
F) A) and C)

Question 10

GTIN is an identifier used to look up product information in a(n)________ like UPCs.

Accepted Answer

The answer of GTIN is an identifier used to look...

Question 11

The significance of activity-based costing as a management tools depends largely on the accuracy of the cost drivers selected as allocation bases.

Accepted Answer

A) True 
 B)False

Question 12

In the production-planning application system,________ contain information about the work center,length of time,and tooling required to perform each task.

Accepted Answer

The answer of In the production-planning application system,________ contain information...

Question 13

Reorder point is calculated as the purchasing cost per order multiplied by the average inventory usage rate.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a concern regarding the storage and handling of inventory items?

Accepted Answer

A)   Price paid per unit
B)   Protection against damage or spoilage
C)   Avoidance of obsolescence
D)   Security against embezzlementE) A) and B)
F) All of the above

Question 15

Which of the following objectives in a property accounting application system relates to the process of periodic comparison of physical assets with the accounting records?

Accepted Answer

A)   Provide for appropriate depreciation and/or amortization calculations
B)   Maintain adequate records that identify assets with description, cost, and physical location
C)   Provide for reevaluation for insurance and replacement cost purposes
D)   Provide management with reports for planning and controlling individual asset itemsE) B) and D)
F) All of the above

Question 16

The document which gives authorization to the production department to manufacture a product is a

Accepted Answer

A)   production order.
B)   materials requisition.
C)   purchase order.
D)   sales forecast.E) B) and D)
F) C) and D)

Question 17

There are ________ major elements that enter into the cost of manufacturing a product.

Accepted Answer

The answer of There are ________ major elements that enter...

Question 18

A finished goods status report is sent to production planning from the stores department.

Accepted Answer

A) True 
 B)False

Question 19

Industrial robots are used to move material,parts,tools,or specialized devices through variable programmed motions for the performance of a variety of tasks.

Accepted Answer

A) True 
 B)False

Question 20

The master-operations file is one of the data sources integrated with others in the production-planning application program.

Accepted Answer

A) True 
 B)False

Exam 10: The Production Business Process

Why is it important to design control systems in a quick-response manufacturing system before the manufacturing system is implemented?

Correct Answerverified Controls should be included in the des...View AnswerShow Answer

In a production planning system,the production status file is used as an input for which of the following groups of applications?

Correct AnswerverifiedShow Answer

Lean production is a production system in which parts are produced only as they are required in subsequent operations.

Correct AnswerverifiedShow Answer

Industrial robots are used to move material,parts,tools,or specialized devices through variable programmed motions for the performance of a variety of tasks.

Correct AnswerverifiedShow Answer

The ________ in MRP is used comprehensively to include all types of inventories.

Correct AnswerverifiedShow Answer

The best sources of information necessary to calculate an EOQ are prior purchase orders.

Correct AnswerverifiedShow Answer

Which of the following is not a concern regarding the storage and handling of inventory items?

Correct AnswerverifiedShow Answer

GTIN is an identifier used to look up product information in a(n)________ like UPCs.

Correct AnswerverifiedShow Answer

There are ________ major elements that enter into the cost of manufacturing a product.

Correct AnswerverifiedShow Answer

The document which gives authorization to the production department to manufacture a product is a

Correct AnswerverifiedShow Answer

The file or record that is essentially a subsidiary ledger for tangible assets,such as land,buildings,machinery,and equipment,is the

Correct AnswerverifiedShow Answer

The significance of activity-based costing as a management tools depends largely on the accuracy of the cost drivers selected as allocation bases.

Correct AnswerverifiedShow Answer

Reorder point is calculated as the purchasing cost per order multiplied by the average inventory usage rate.

Correct AnswerverifiedShow Answer

Which of the following objectives in a property accounting application system relates to the process of periodic comparison of physical assets with the accounting records?

Correct AnswerverifiedShow Answer

A finished goods status report is sent to production planning from the stores department.

Correct AnswerverifiedShow Answer

Systems that include software for defining the manufacturing process or tools to increase productivity are known as ________ systems.

Correct AnswerverifiedShow Answer

Which is the best way for a company to prevent having outdated inventory on hand?

Correct AnswerverifiedShow Answer

In the production-planning application system,________ contain information about the work center,length of time,and tooling required to perform each task.

Correct AnswerverifiedShow Answer

The master-operations file is one of the data sources integrated with others in the production-planning application program.

Correct AnswerverifiedShow Answer

Activity-based costing (ABC) systems allocate overhead differently than traditional cost accounting systems.The difference between an ABC and a traditional cost accounting system is that

Correct AnswerverifiedShow Answer

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Controls should be included in the des...
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