Question 1

Sule Technologies installed a new production monitoring system that will reduce system breakdowns by 35%.The new system will increase throughput by
A)increasing productive capacity.
B)increasing yield.
C)increasing productive processing time.
D)increasing all components of throughput.

Accepted Answer

The answer of Sule Technologies installed a new production monitoring...

Question 2

Identify the role below that accountants can play in the production cycle.
A)participate in product design
B)perform cost analysis
C)help an organization choose an inventory control system
D)all of the above

Accepted Answer

Accountants can participate in product design by providing insight on the cost of different design options. They can perform cost analysis to determine the most cost-effective ways to produce a product. They can also help an organization choose an inventory control system that will streamline the production process and reduce waste.

Question 3

The expenses associated with a product recall are ________ costs.
A)prevention
B)inspection
C)internal failure
D)external failure

Accepted Answer

Expenses associated with a product recall are external failure costs because they occur after the product has been sold and are incurred due to a defect or issue with the product that has caused harm or the need for a recall.

Question 4

How many labor hours should the company budget in week three to produce all side panels needed? Round to the nearest hour,if necessary.
Bill of Materials

Accepted Answer

The answer of How many labor hours should the company...

Question 5

Labor productivity is measured by the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by
A)increasing productive capacity.
B)increasing productive processing time.
C)increasing yield.
D)increasing all components of throughput.

Accepted Answer

Labor productivity measures the efficiency of the production process, and an increase in labor productivity means that the workers are able to produce more output with the same amount of labor time. This increase in efficiency leads to an increase in productive capacity, as the workers are able to complete more tasks in the same amount of time. Therefore, choice A is the best answer, as an increase in labor productivity will directly lead to an increase in throughput by increasing productive capacity.

Question 6

Yasamin Roshni owns and operates a small deli in Miami,Florida.She maintains a file that contains the ingredients used to make each of her famous subs.The ingredients needed to make a specific sub are most similar to a(n)
A)operations list.
B)production order.
C)bill of materials.
D)materials requisition.

Accepted Answer

The list of ingredients needed to make a specific sub is essentially a bill of materials, which outlines the necessary components to produce a specific item.

Question 7

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.
A)prevention
B)inspection
C)internal failure
D)external failure

Accepted Answer

The use of clean rooms in the production of computer hard drives is a preventive measure to avoid any contamination during the production process. Therefore, the associated expenses are prevention costs.

Question 8

The expenses associated with disposal of defective products are ________ costs.
A)prevention
B)inspection
C)internal failure
D)external failure

Accepted Answer

Internal failure costs are expenses related to defective products before they are shipped to customers, including the costs of disposing of these products.

Question 9

Why might an organization find it most beneficial to involve accountants in product design?
A)Because generally at least 65% of product costs are determined in the design stage and accountants can help minimize product costs
B)Because accountants are generally able to improve the quality of new products
C)Because involving accountants in product design boosts firm morale
D)Because accountants are generally able to identify what consumers want in a new product

Accepted Answer

Accountants can help minimize product costs by analyzing the costs associated with various design options and making recommendations to reduce expenses. By involving accountants in the design stage, organizations can ensure that costs are considered early on rather than waiting until after the product has been developed, potentially leading to costly redesigns.

Question 10

________ costs are expenses associated with quality assurance activities.
A)Prevention
B)Inspection
C)Internal failure
D)External failure

Accepted Answer

The answer of ________ costs are expenses associated with quality...

Question 11

In addition to identifying and dealing with defective products before they reach customers,quality management is concerned with initiating process changes that will reduce the number of defective units produced.All other things held constant,a decrease in the number of defective units will increase throughput by
A)increasing productive capacity.
B)increasing productive processing time.
C)increasing yield.
D)increasing all components of throughput.

Accepted Answer

Yield refers to the ratio of good units produced to the total units produced. By reducing the number of defective units, the yield will increase, resulting in a higher number of good units produced. This will increase throughput without the need for additional capacity or processing time.

Question 12

Gulshan Parvana operates a machine shop in Istanbul,Turkey.She places bids on small projects in the metropolitan area.Which of the following is most likely to be a cost driver that should be considered when determining how to allocate utility costs?
A)number of projects completed
B)number of units produced
C)number of labor hours
D)sales revenue

Accepted Answer

The answer of Gulshan Parvana operates a machine shop in...

Question 13

Discuss the three categories of overhead costs in an activity-based costing system.

Accepted Answer

The answer of Discuss the three categories of overhead costs...

Question 14

How many side panels should the company budget for use in week two?
Bill of Materials

Accepted Answer

The answer of How many side panels should the company...

Question 15

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using ________ but an AIS enhancement is to use ________ to record and track direct labor costs.
A)job-time tickets; coded identification cards
B)move tickets; coded identification cards
C)employee earnings records; job-time tickets
D)time cards; electronic time entry terminals

Accepted Answer

The answer of Direct labor must be tracked and accounted...

Quiz 14: The Production Cycle

Sule Technologies installed a new production monitoring system that will reduce system breakdowns by 35%.The new system will increase throughput by

Identify the role below that accountants can play in the production cycle.

The expenses associated with a product recall are ________ costs.

How many labor hours should the company budget in week three to produce all side panels needed? Round to the nearest hour,if necessary. Bill of Materials

Labor productivity is measured by the quantity produced divided by the labor time required to produce it.All other things held constant,an increase in labor productivity will increase throughput by

Yasamin Roshni owns and operates a small deli in Miami,Florida.She maintains a file that contains the ingredients used to make each of her famous subs.The ingredients needed to make a specific sub are most similar to a(n)

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

The expenses associated with disposal of defective products are ________ costs.

Why might an organization find it most beneficial to involve accountants in product design?

________ costs are expenses associated with quality assurance activities.

Gulshan Parvana operates a machine shop in Istanbul,Turkey.She places bids on small projects in the metropolitan area.Which of the following is most likely to be a cost driver that should be considered when determining how to allocate utility costs?

Discuss the three categories of overhead costs in an activity-based costing system.

How many side panels should the company budget for use in week two? Bill of Materials

Direct labor must be tracked and accounted for as part of the production process.Traditionally,direct labor was tracked using but an AIS enhancement is to use to record and track direct labor costs.