8-8 - 10 EQs (B) - 100% Flashcards
When is a distributed processing system useful?
when processing in multiple locations
enables processing of a large volume of transactions and fast access to data
Describe how the FIFO method determines equivalent units of production (EUP).
Based on the work done in the current period, which includes the work necessary to complete beginning WIP and the work performed on the units started in the current period.
The units started during the period are either completed or they remain as ending WIP, thus the EUP relative to units completed plus the work done on the EWIP.
Which of the following non-value-added costs associated with manufactured work in process inventory is most significant?
The cost of materials that cannot be traced to any individual product.
The cost of labor that cannot be traced to any individual product.
The cost of moving, handling, and storing any individual product.
The cost of additional resources consumed to produce any individual product.
Ans. The cost of moving, handling, and storing any individual product.
This answer is correct because the cost of moving, handling, and storing products is a non-value-added cost and should be minimized.
