Question 1

In activity-based costing,the expenses associated with planning and design of new products are ________ overhead.
A) batch-related
B) product-related
C) companywide
D) expenditure-based

Accepted Answer

Planning and design of new products are directly related to the production of specific products, making them a product-related overhead cost.

Question 2

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

Accepted Answer

The expenses associated with a product recall are considered external failure costs because they occur after the product has been released to the market and had a negative impact on the company's reputation and financial performance.

Question 3

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 labor in producing a certain output. An increase in labor productivity means that more output can be produced in the same amount of time or less time. This would increase productive capacity, allowing for more throughput. Therefore, the correct choice is A. The other options (B, C, and D) are not necessarily guaranteed to increase throughput, since they depend on factors other than labor productivity.

Question 4

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.
A) batch-related
B) product-related
C) companywide
D) expenditure-based

Accepted Answer

Expenses associated with the purchase of health care insurance for employees are considered companywide overhead because they benefit the entire organization, not just specific products or batches.

Question 5

Identify and discuss the two documents that are the result of product design activities.

Accepted Answer

The answer of Identify and discuss the two documents that...

Question 6

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 7

This document appears to be a 
A) Materials Requisition.
B) Production Order.
C) Bill of Materials.
D) Move Ticket between production and warehouse functions.

Accepted Answer

The answer of This document appears to be a 
A)...

Question 8

At the end of each production run,preventive maintenance is done on the assembly line.The expenses associated with this maintenance are ________ overhead.
A) batch-related
B) product-related
C) companywide
D) department-based

Accepted Answer

Preventive maintenance is done at the end of each production run, which implies that it is related to batches or groups of products. So, the expenses associated with this maintenance are batch-related overhead.

Question 9

Explain what CIM means and its benefits.

Accepted Answer

The answer of Explain what CIM means and its benefits....

Question 10

Which of the following is not a benefit of activity-based costing?
A) Lower cost
B) Better decisions
C) Improved cost management
D) Identification of cost drivers

Accepted Answer

Lower cost is not a benefit of activity-based costing. In fact, implementing activity-based costing may initially increase costs due to the resources required to implement and maintain the system. However, the other options listed (B, C, and D) are valid benefits of activity-based costing.

Question 11

Wee Bee Trucking determines the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.This is an example of ________ costing.
A) job-order
B) unit-based
C) activity-based
D) process

Accepted Answer

Activity-based costing involves identifying cost drivers and allocating overhead accordingly. This method is more accurate and specific than traditional unit-based or job-order costing, making it the best choice for Wee Bee Trucking. Process costing is used in industries that produce homogeneous products, such as chemicals or food items, which is not applicable here.

Question 12

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 13

The expenses associated with quality assurance activities are ________ costs.
A) prevention
B) inspection
C) internal failure
D) external failure

Accepted Answer

The answer of The expenses associated with quality assurance activities...

Question 14

What types of data are accumulated by cost accounting? What is the accountant's role in cost accounting?

Accepted Answer

The answer of What types of data are accumulated by...

Question 15

Clint Smith operates a machine shop in Burbank,California.He places bids on small lot production projects submitted by firms throughout the Los Angeles area.Which of the following is most likely to be a cost driver for the allocation of utility costs?
A) Number of units produced
B) Number of labor hours
C) Number of projects completed
D) Sales revenue

Accepted Answer

Number of projects completed is the most likely cost driver for the allocation of utility costs because each project requires a certain amount of utilities to be completed.

Question 16

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 17

Folding Squid Technologies initiated a just-in-time inventory system in 2010.Now the production manager,Chan Ziaou,wants to apply the same principles to the entire production process.His recommendation is for the company adopt a
A) lean manufacturing system.
B) master production scheduling system.
C) manufacturing resource planning system.
D) computer-integrated manufacturing system.

Accepted Answer

Just-in-time inventory is a crucial aspect of lean manufacturing, which emphasizes the elimination of waste, reduction of lead times, and continuous improvement throughout the entire production process. Adopting a lean manufacturing system would align with the production manager's goal of applying the same principles to the entire production process. Master production scheduling, manufacturing resource planning, and computer-integrated manufacturing are all valuable systems but are not specifically focused on just-in-time inventory and lean principles.

Question 18

Folding Squid Technologies has installed a new production monitoring system that is expected to reduce system breakdowns by 28%.This system will increase throughput by
A) increasing productive capacity.
B) increasing productive processing time.
C) increasing yield.
D) increasing all components of throughput.

Accepted Answer

Reducing system breakdowns increases productive processing time, as less time is lost to repairs and maintenance.

Question 19

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

An increase in yield means that more units are being successfully produced without defects, which leads to a higher overall output or throughput. This does not necessarily involve increasing productive capacity or processing time, but rather improving the efficiency and effectiveness of the production process.

Question 20

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 expenses associated with the use of clean rooms are prevention costs, since they are incurred to prevent defects or errors from occurring in the production process.

Quiz 14: The Production Cycle

In activity-based costing,the expenses associated with planning and design of new products are ________ overhead.

The expenses associated with a product recall are ________ costs.

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

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.

Identify and discuss the two documents that are the result of product design activities.

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

This document appears to be a

At the end of each production run,preventive maintenance is done on the assembly line.The expenses associated with this maintenance are ________ overhead.

Explain what CIM means and its benefits.

Which of the following is not a benefit of activity-based costing?

Wee Bee Trucking determines the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.This is an example of ________ costing.

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

The expenses associated with quality assurance activities are ________ costs.

What types of data are accumulated by cost accounting? What is the accountant's role in cost accounting?

Clint Smith operates a machine shop in Burbank,California.He places bids on small lot production projects submitted by firms throughout the Los Angeles area.Which of the following is most likely to be a cost driver for the allocation of utility 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

Folding Squid Technologies initiated a just-in-time inventory system in 2010.Now the production manager,Chan Ziaou,wants to apply the same principles to the entire production process.His recommendation is for the company adopt a

Folding Squid Technologies has installed a new production monitoring system that is expected to reduce system breakdowns by 28%.This system will increase throughput by

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