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| 1 | |
Which of the following uses activity-based costing information to support organizational strategy, improve operations, and manage costs? |
| | A) | Activity-based costing (ABC) |
| | B) | Two-dimensional activity-based costing |
| | C) | Activity analysis |
| | D) | Activity-based management (ABM) |
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| 2 | |
In a two-dimensional ABC model, which is the last outcome on the cost assignment view? |
| | A) | Cost objectives |
| | B) | Root causes |
| | C) | Performance measures |
| | D) | Activities |
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| 3 | |
In a two-dimensional ABC model, which is the last outcome on the process view? |
| | A) | Cost objectives |
| | B) | Root causes |
| | C) | Performance measures |
| | D) | Activities |
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| 4 | |
In the two-dimensional ABC model, what is the focal point of both ABC and ABM? |
| | A) | Root causes |
| | B) | Performance measures |
| | C) | Cost objects |
| | D) | Resource costs |
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| 5 | |
Activity analysis entails identification not only of activities conducted in the organization but also includes which of the following related to those activities? |
| | A) | Root causes, the events that trigger activities, and linkages among activities |
| | B) | Assignment viewpoint and process viewpoint |
| | C) | Non-value-added costs |
| | D) | Benchmarks and target costs |
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| 6 | |
Non-value-added activities are which types of operations? |
| | A) | Unnecessary and dispensable |
| | B) | Necessary but dispensable |
| | C) | Necessary but inefficient and improvable |
| | D) | Either A or C |
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| 7 | |
The costs of activities that can be eliminated without deterioration of product quality, performance, or perceived value are known as which of the following? |
| | A) | Kaizen costs |
| | B) | Best practice costs |
| | C) | Non-value-added costs |
| | D) | Reengineering costs |
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| 8 | |
Which of the following is one of the three criteria for determining whether an activity adds value? |
| | A) | Is the activity related solely to production? |
| | B) | Is the activity properly linked? |
| | C) | Is an activity sometimes value-added and sometimes non-value-added? |
| | D) | Is the activity measurable? |
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| 9 | |
Techniques used to reduce an identified non-value-added cost include which of the following? |
| | A) | Activity reduction |
| | B) | Activity elimination |
| | C) | Activity sharing. |
| | D) | All of the above |
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| 10 | |
Which of the following may be a factor in some customers being less profitable than others? |
| | A) | Frequency of ordering |
| | B) | Special handling of parts or products |
| | C) | Faster delivery time required |
| | D) | All of the above |
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| 11 | |
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One purchase order is required for each order, and each order is billed separately. Which of the following is true? |
| | A) | Customer related costs for Customer b are less than customer related costs for Customer C. |
| | B) | Customer related costs for Customer B exceed customer related costs for Customer C by $200,400. |
| | C) | Customer related order costs for Customer C are $720. |
| | D) | Customer related contract costs for Customer B are $1,280. |
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| 12 | |
Which of the following is true? |
| | A) | It is possible for the cumulative operating income from a group of customers to exceed 100% of total operating income. |
| | B) | It is not possible for the cumulative operating income from a group of customers to exceed 100% of total operating income. |
| | C) | A graphic presentation of a customer-profitability profile is not curvilinear |
| | D) | Typically, for most manufacturers, profits are contributed by customers are generally equal and uniform in amount. |
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| 13 | |
Which of the following is the constant effort to eliminate waste, reduce response time, simplify both products and processes, and improve quality and customer services? |
| | A) | A JIT environment. |
| | B) | Continuous improvement. |
| | C) | Kaizen costing. |
| | D) | Target costing. |
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| 14 | |
With regard to target costing, which of the following is true? |
| | A) | The estimated product price is called the target price. |
| | B) | The desired profit is called the target profit. |
| | C) | The estimated product cost is called the target cost. |
| | D) | All of the above are true. |
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| 15 | |
Which of the following is a cost-reduction and process-improvement technique that utilizes information collected about a product's design and production process, and then examines various attributes of the design and process to identify candidates for improvement efforts? |
| | A) | Target costing |
| | B) | Continuous improvement |
| | C) | Value engineering |
| | D) | Kaizen costing |
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| 16 | |
Which of the following is true about target costing and kaisen costing? |
| | A) | Both focus on a target profits. |
| | B) | Both focus on the design phase. |
| | C) | One focuses on the design phase, the other focuses on reducing costs during the manufacturing phase. |
| | D) | Both focus on gradual and continued improvements. |
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| 17 | |
A kaizen costing chart is a graph that depicts which of the following? |
| | A) | Actual cost performance at end of previous period and actual cost performance of the current period. |
| | B) | Kaizen cost goal reduction rate |
| | C) | The actual cost performance of the current period as the cost base for the subsequent period. |
| | D) | All of the above. |
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| 18 | |
The focus on identifying and relaxing those things that limit an organization's ability to reach a higher level of goal achievement is called which of the following? |
| | A) | Kaisen costing. |
| | B) | Theory of constraints. |
| | C) | Benchmarking. |
| | D) | Best practices. |
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| 19 | |
The continual search for the most effective method accomplishing a task by comparing existing methods and performance levels with those of other organizations is known as which of the following? |
| | A) | Kaisen costing. |
| | B) | Theory of constraints. |
| | C) | Benchmarking. |
| | D) | Best practices. |
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| 20 | |
Which of the following refers to the most effective methods of accomplishing various tasks in a particular industry? |
| | A) | Reengineering |
| | B) | Theory of constraints. |
| | C) | Benchmarking. |
| | D) | Best practices. |
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| 21 | |
A practice which is in contrast to the concept of kaizen and involves giant leaps toward improvement is called which of the following? |
| | A) | Reengineering |
| | B) | Theory of constraints. |
| | C) | Benchmarking. |
| | D) | Best practices. |
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| 22 | |
Which of the following is not a key feature of a JIT inventory system? |
| | A) | Smooth, uniform production rate |
| | B) | Quick and inexpensive setups of production machinery |
| | C) | High quality levels for raw material and finished products |
| | D) | Push method of coordinating steps in the production process |
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| 23 | |
Which of the following is used under the pull method associated with JIT to request a particular number and type of parts from one work center by the next work center? |
| | A) | Production Kanban |
| | B) | Withdrawal Kanban |
| | C) | Materials requisition |
| | D) | Bill of materials |
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| 24 | |
When a work center receives a withdrawal Kanban, what document is created by that work center? |
| | A) | Materials requisition |
| | B) | Invoice |
| | C) | Production Kanban |
| | D) | Bill of materials |
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| 25 | |
In order to maintain high quality levelsfor raw materials and finished products, while maintaining very small stocks of raw materials or finished goods, which of the following often accompanies a just-in-time production environment? |
| | A) | Total quality control (TQC) |
| | B) | Just-in-time inventory |
| | C) | Just-in-time purchasing |
| | D) | Value engineering |
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| 26 | |
Which of the following is not a key feature of just-in-time (JIT) purchasing? |
| | A) | Only a few suppliers |
| | B) | Short-term contracts negotiated with suppliers |
| | C) | Only minimal inspection of delivered materials and parts |
| | D) | Grouped payments to each vendor |
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| 27 | |
Which of the following might be found on a list of key features of the JIT approach to production? |
| | A) | A push method of coordinating steps in the production cycle. |
| | B) | Single skilled production workers, expert in a particular task. |
| | C) | An atmosphere of teamwork to improve the production system. |
| | D) | Large-lot purchases of materials. |
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| 28 | |
Which of the following statements is true? |
| | A) | Activity-based management offers few benefits to the service industry. |
| | B) | The service industry uses cost management tools to eliminate non-value-added activities. |
| | C) | The companies in the service industry seldom perform customer-profitability analysis. |
| | D) | The JIT philosophy does not lend itself to service industry activities. |
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