Site MapHelpFeedbackTrue or False
True or False
(See related pages)

1
Using activity-based costing information to support departmental strategy, improve operations, and manage costs is called activity-based management.
A)True
B)False
2
In the two-dimensional ABC cost model, the first phase of the process view is activity evaluation.
A)True
B)False
3
The first phase of a two-dimensional ABC cost model is the activity analysis phase.
A)True
B)False
4
The first phase of a two-dimensional ABC cost model identifies the root causes of activities, the events that trigger activities, and the linkages among activities.
A)True
B)False
5
From a two-dimensional activity-based costing (ABC) model, it is a combination of the cost assignment viewpoint and the process analysis and evaluation role that comprise activity-based management (ABM).
A)True
B)False
6
Non-value-added activities are always unnecessary and dispensable.
A)True
B)False
7
Costs that can be eliminated without deterioration of product quality, performance, or perceived value are called non-value-added costs.
A)True
B)False
8
One of the questions to determine whether an activity adds value is to ask "Is the activity efficiently performed?"
A)True
B)False
9
Sometimes activity analysis is referred to as process value analysis (PVA).
A)True
B)False
10
The amount of time during which materials, partially completed products, or finished goods are held in stock before further processing or shipment to customers is referred to as waiting time.
A)True
B)False
11
The time spent moving raw materials, work in process, or finished goods between operations is referred to as process time.
A)True
B)False
12
The amount of time that raw materials or work in process spend between operations is referred to as waiting time.
A)True
B)False
13
Once non-value-added activities have been identified, the most prevalent method of reducing the non-value-added activity is to eliminate it.
A)True
B)False
14
Customer profitability analysis uses activity-based management (ABM) to determine the profit associated with serving particular customers.
A)True
B)False
15
A customer-profitability analysis with customers ranked by operating income is quite typical for manufacturers.
A)True
B)False
16
A graphical presentation of customers ranked by operating income (customer-profitability analysis) is called a customer-profitability profile.
A)True
B)False
17
Applying cost driver rates to customer-related activities can help identify those customers that are profitable and those that are not.
A)True
B)False
18
The price down/cost down concept is one of the compelling reasons for companies to employ techniques continuous improvement.
A)True
B)False
19
Target costing is applied to new products, and kaizen costing is applied to existing products.
A)True
B)False
20
Value engineering and value analysis are synonymous terms.
A)True
B)False
21
If the target cost per unit is $15 and the target profit is 40% of cost, then the target price must be $21.
A)True
B)False
22
The term target costing refers to more than establishing a target cost that is derived by subtracting the desired target profit from an estimated target price.
A)True
B)False
23
The Japanese word kaizen refers to continual and gradual improvement through large betterment activities.
A)True
B)False
24
A kaizen cost goal is the sole responsibility of production personnel.
A)True
B)False
25
A key to the success of target costing and kaizen costing is employee empowerment.
A)True
B)False
26
The continual search for the most effective method of accomplishing a task by comparing existing methods and performance levels with those of other organizations or with other subunits within the same organization is called continuous improvement.
A)True
B)False
27
Benchmarking often leads to the discovery of best practices.
A)True
B)False
28
Kaizen costing and reengineering are similar in the degree of product improvement that is sought when using either one.
A)True
B)False
29
A management tool used to identify the constraints that are preventing the organization from achieving a higher level of success is referred to as the theory of constraints (TOC).
A)True
B)False
30
A primary goal of a just-in-time (JIT) inventory and production management system is to eliminate or reduce inventories at the early stages of production.
A)True
B)False
31
The JIT environment relies on a production method known as a pull method.
A)True
B)False
32
The pull approach to production is facilitated through the use of withdrawal and production Kanbans.
A)True
B)False
33
One of the key features of a successful JIT inventory system is the purchase of infrequent, large lot purchases of raw material inventory.
A)True
B)False
34
In order for a JIT inventory system to succeed, the firm's workers must be highly skilled in a particular function or job.
A)True
B)False
35
One of the key features to the success of JIT purchasing is the use of short-term contracts with vendors.
A)True
B)False
36
With a JIT purchasing approach in place, only minimal inspections of delivered materials and parts is required.
A)True
B)False
37
Activity-based management and other cost management tools have benefited the service industry.
A)True
B)False





To learn more about the book this website supports, please visit its Information Center.
(c)2009 Tata McGraw-Hill
Any use is subject to the Terms of Use and Privacy Policy.
Tata McGraw-Hill is one of the many fine businesses ofThe McGraw-Hill Companies.


Hilton (SIE)Online Learning Center

Home > Chapter 6 > True or False