Conversion Cycle

Question 1

What are the 4 processes of the traditional batch order processing?

Answer 1

1. Plan and Control Production
2. Perform Production Operations
3. Inventory Control
4. Perform Cost Accounting

Question 2

When does production start?

Answer 2

When it receives materials from storekeeping

Question 3

Who provides the proudction planning and control with the status of raw materials and finished goods?

Answer 3

Inventory Control

Question 4

Is the Eoq simple and valid?

Answer 4

Yes but not all the time

Question 5

What is the relationship between cost per year of placing orders and order quantities

Answer 5

Inverse

Question 6

What is needed to authorize the inventory warehouse to release raw materials

Answer 6

Materials Recquisition

Question 7

What trigges the conversion cycle?

Answer 7

Sales Order

Question 8

Job Tickets is given to ____ while the Time Card is given to the ____

Answer 8

Cost Accounting
Payroll

Question 9

Completed Move Ticket is given to —_

Answer 9

Production planning and control

Question 10

What initiate the cost accounting system?

Answer 10

Open work order file

Question 11

What are the elements of a cost accounting system?

Answer 11

Inventory Control: mat requisition
Work Center: Job Ticket and Completed Move Ticket

Question 12

What signals the end of a production process?

Answer 12

Receipt of last move ticket

Question 13

What are the documents that consitute transaction authorization?

Answer 13

Work Order, Move Ticket, and Materials Recquisitions

Question 14

Which department reconciles the overall system?

Answer 14

General Ledger

Question 15

Which department reconciles with the cost in the production system?

Answer 15

Cost Accounting

Question 16

T or F: Direct access of assets include controlled use of materials requisitions, excess materials requisitions, and employee time cards

Answer 16

F

Question 17

What does the general ledger reconcile to verify the movement from wip to fg

Answer 17

The cost accounting and inventory control documents

Question 18

World class companies often adopt ____ manufacturing

Answer 18

Lean

Question 19

What is the hallmark principle of Lean manufacturing?

Answer 19

Least inventory needed

Question 20

What are the principles of lean manufacturing?

Answer 20

1. Pull Processing
2. Perfect Quality (Zero Defects)
3. Waste Minimization (Resource Maximization)
4. Reduced Inventory
5. Production Flexibility
6. Supplier Relations
7. Team Attitude

Question 21

Reorganization is based on _______ which shortens physical distance between activties

Answer 21

FLows through cells

Question 22

_____ __ _____ are stand alone isalnds that employ ___ ___ __ machinees that can perform multiple operations with less human involvement

Answer 22

Islands of technology, Computer Numerical Controlled

Question 23

an environment that is completely automated

Answer 23

Computer Integrated Manufacturing

Question 24

Replaces traditional forklifts and human operators, reduces errors, improved inventory control, and lower storage costs

Answer 24

Automated Storage and Retrieval Systems

Question 25

What do robotics use for their tasks?

Answer 25

Special CNC manchines

Question 26

Activity Based Costing (ABC) information system that provides managers information about?

Answer 26

Activities and Cost Objects

Question 27

What is the main difference between ABC and Traditional Accounting System?

Answer 27

ABC has multiple activity drivers while traditional accounting systems only has one (machine hours)

Question 28

T or F: ABC is in conflict with lean manufacturing

Answer 28

True

Question 29

all the steps in a process that are essential to producing a product

Answer 29

Value Stream

Question 30

T or F Value Stream is more complicated than ABC costing

Answer 30

False simpler

Question 31

What is the distinction of value stream to other accounting system?

Answer 31

no distinction between direct and indirect costs including labor