CHAPTER 14 The Production Cycle

Question 1

1. The production cycle information system integrates both operational and financial data
   from many sources.
   a. True
   b. False

Answer 1

a. True (Correct. The production cycle information system integrates both operational
and financial data from many sources.)

Question 2

2. Which of the following is an advantage of bar-coding over RFID?
   a. speed
   b. accuracy
   c. cost
   d. safety

Answer 2

c. cost (Correct. Bar-coding is currently less expensive than RFID.)

Question 3

4. Which document captures information about labor used in production?
   a. move ticket
   b. job-time ticket
   c. operations list
   d. bill of materials

Answer 3

b. job-time ticket (Correct. The job-time ticket records time spent on each activity.

Question 4

5. The production cycle is a recurring set of business activities and related information
   processing operations associated with the manufacture of products. What is its second
   step?
   a. product design
   b. product operations
   c. cost accounting
   d. planning and scheduling

Answer 4

d. planning and scheduling (Correct. The objective is to develop a production plan efficient
enough to meet existing orders and anticipated short-term demand while minimizing
inventories of both raw materials and finished goods.)

Question 5

6. Lean manufacturing is also referred to as
   a. pull manufacturing. )
   b. push manufacturing.

Answer 5

a. pull manufacturing. (Correct. Lean manufacturing is often referred to as pull manufacturing,
because goods are produced in response to customer demand.)

Question 6

7. Which system is most likely to be used by a company that mass-produces large batches of
   standard items in anticipation of customer demand?
   a. MRP-II
   b. lean manufacturing
   c. activity-based costing
   d. throughput

Answer 6

a. MRP-II (Correct. MRP-II is a push form of manufacturing that is appropriate for mass
production of standardized items for which demand is predictable.)

Question 7

8. The development of an MPS would be most effective in preventing which of the following
threats?
a. recording and posting errors 
b. loss of inventory 
c. production of poor-quality goods 
d. excess production

Answer 7

d. excess production (Correct. An MPS schedules production to satisfy demand and,
therefore, reduces the chance of overproduction.)

Question 8

9. Which control procedure is probably least effective in reducing the threat of inventory
   loss?
   a. limiting physical access to inventory
   b. documenting all transfers of inventory within the company
   c. regular materials usage reports that highlight variances from standards
   d. periodically counting inventory and investigating any discrepancies between those
   counts and recorded amounts

Answer 8

c. regular materials usage reports that highlight variances from standards (Correct.
Although variances could indicate theft, they are more likely to reflect changes
in efficiency.)

Question 9

10. What is the number of good units produced in a given period of time called?
    a. productive capacity
    b. productive processing time
    c. yield
    d. throughput

Answer 9

d. throughput (Correct. Throughput is the measure of the number of good units produced
per unit of time.)