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ACCOUNTING INFORMATION SYSTEM > CHAPTER 7 QUIZ REVIEW > Flashcards

CHAPTER 7 QUIZ REVIEW Flashcards

1
Q

The philosophy of customer satisfaction permeates the world-class firm.

T or F

A

T

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2
Q

Reports generated by the cost accounting system include performance reports and budget reports.

T or F

A

T

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3
Q

The cost accounting system authorizes the release of raw materials into production.

T or F

A

F

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4
Q

Batch processing creates a homogeneous product through a continuous series of standard procedures.

T or F

A

F

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5
Q

The bill of materials specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished product.

T or F

A

T

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6
Q

A purchase requisition authorizes the storekeeper to release materials to individuals or work centers in the production process.

T or F

A

F

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7
Q

Cement and petrochemicals are produced by the batch manufacturing method.

T or F

A

F

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8
Q

The objective of the Economic Order Quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs.

T or F

A

T

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9
Q

The work-in-process file is the subsidiary ledger for the work-in-process control account.

T or F

A

T

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10
Q

Move tickets authorize the storekeeper to release materials to work centers.

T or F

A

F

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11
Q

Typically the only allocated cost in the value stream is a charge per square foot for the value stream production facility.

T or F

A

T

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12
Q

Computer Integrated Manufacturing focuses on reducing the complexity of the physical manufacturing layout of the shop floor.

T or F

A

F

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13
Q

The only objective of the Just-In-Time philosophy is to reduce inventory levels.

T or F

A

F

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14
Q

Accounting in a world-class manufacturing environment emphasizes standard cost and variance analysis.

T or F

A

F

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15
Q

ABC assigns cost to cost objects based on their use of activities.

T or F

A

T

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16
Q

The complexities of ABC have caused many firms to abandon this method in favor of a simpler accounting model called value stream accounting.

T or F

A

T

17
Q

A company’s value stream includes all steps in a process, both essential and non-essential, for which the customer is willing to pay.

T or F

A

F

18
Q

Lean manufacturing evolved from the Toyota Production System (TPS), which is based on the just-in-time (JIT) production model.

T or F

A

T

19
Q

The two subsystems of a traditional conversion cycle are the production system and the delivery system.

T or F

A

F

20
Q

Manufacturing resources planning (MRP II) has evolved into enterprise resource planning (ERP).

T or F

A

T

21
Q

Pull processing involves pulling products from the consumer end (demand), rather than pushing them from the production end (supply).

T or F

A

T

22
Q

The inventory control function updates and maintains both raw materials and finished goods inventory subsidiary ledgers.

T or F

A

T

23
Q

An excess materials requisition is a control that signals that a greater than standard quantity of materials is being ordered from the vendor.

T or F

A

F

24
Q

Cost accounting initiates a WIP account upon receiving the first move ticket of a batch.

T or F

A

F

25
Q

A company’s value stream map depicts only the value added activities needed to complete a process or product.

T or F

A

T

26
Q

Which statement is true?

a. World-class companies must maintain strategic agility and be able to turn on a dime.

b. World-class companies motivate and treat employees like appreciating assets.

c. Manufacturing firms that achieve world-class status do so by following a philosophy of lean manufacturing

d. All the above are true

A

d. All the above are true

27
Q

Which statement is true?

a. World-class companies must maintain strategic agility and be able to turn on a dime.

b. World-class companies motivate and treat employees like appreciating assets.

c. Manufacturing firms that achieve world-class status do so by following a philosophy of lean manufacturing

d. All the above are true

A

d. All the above are true

28
Q

Which function is not a part of the batch production process?

a. Plan and control production

b. Prepare purchase orders

c. Maintain inventory control

d. Perform cost accounting

A

b. Prepare purchase orders

29
Q

Which function is not a part of the batch production process?

a. Plan and control production

b. Prepare purchase orders

c. Maintain inventory control

d. Perform cost accounting

A

b. Prepare purchase orders

30
Q

The purpose of the cost accounting system is to

a. produce information for inventory valuation

b. authorize release of raw materials

c. direct the movement of work-in-process

d. determine material requirements

A

a. produce information for inventory valuation

31
Q

Which process creates a homogeneous product through a continuous series of standard procedures?

a. batch process
b. make-to-order process
c. continuous process
d. none of the above

A

c. continuous process

32
Q

An example of a continuous process is the production of

a. wedding invitations

b. milk products

c. jet aircraft

d. all of the abov

A

b. milk products

33
Q

All of the following are characteristics of batch processing except

a. each item in the batch is similar

b. batches are produced in accordance with detailed customer specifications

c. batches are produced to replenish depleted inventory levels

d. setting up and retooling is required for different batches

A

b. batches are produced in accordance with detailed customer specifications

34
Q

All of the following are characteristics of batch processing except

a. each item in the batch is similar

b. batches are produced in accordance with detailed customer specifications

c. batches are produced to replenish depleted inventory levels

d. setting up and retooling is required for different batches

A

b. batches are produced in accordance with detailed customer specifications

35
Q

When one of the following statements is true?

a. ERP evolved directly from MRP.

b. ERP evolved into MRP and MRP evolved into MRP II

c. MRP II evolved from MRP and MRP II evolved into ERP

d. None of the above is true.

A

c. MRP II evolved from MRP and MRP II evolved into ERP

36
Q

The most common means of making entries in the general ledger is via the journal voucher.

T or F

A

True

37
Q

The most common means of making entries in the general ledger is via the journal voucher.

T or F

A

True

ACCOUNTING INFORMATION SYSTEM (4 decks)

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