Exam 2 Review Flashcards
Value - added activities that could be reduced or removed from the process with no ill effect on the end product or service.
False
The goal of value - engineering is to
Improve value - added activities , eliminate or reduce non - value added activities.
Non - value added activites are?
also called waste activites, could be reomoved with no ill effects , neither henance nor service a competitive advantage.
the benefits of using the ABC costing system are higher if the company
has high indirect costs and produces many different products that use differeing amounts of resources
The cost of adopting ABC may be lower for some companies than for others. this situation may occer
Whan a compnay has the IT to record and ampile driver data , has the accounting and IT expertise to develop the system
Which if the following terms discribes the process of reevaluating activities to reduce costs while satisfying customers needs?
value engineering
The benefits of adopting ABD/ABM are higher for companies in competitive markets because
ABM can pinpoint oppertunities for cost savings.
which of the following pertians to a lean company?
Rather than many individual journal entries, summary journal entires are made when units are completed?
Which of the following is true about lean thinking?
Customer orders drive the production process
which of the following is not a factor in the success of a lean company.
inflexible production operations
the management strategy designed to eliminate waste is called a(n)
Lean thinking
which of the following is not a characteristic of a lean company?
Machines are arranged by function
a system in which companies purchase raw materials only when needed is called
JIT Production
Which term listed below discribes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers
Just - In - Time
Costs incurred to detect poor quality goods or services are
appraisal costs
which if the following costs of quality categtories represent the cost incurred to rework a product after the companie detects a poor - quality product before the company delivers the product to a customer?
Internal failure costs.
which of the following cost of quality categories represent the cost incurred to provide “warranty repair on a juicer?”
External failure costs.
which of the following cost quality categories represent the cost incurred to “test toaster before a safe?”
Appraisal Cost
Which of the following cost of quality categories respresent the cost incurred to seek and find a new supplier that can provide quality raw materials to the LOW - Quality raw materials recieved from a customer supplier?
Prevention costs
which of the following costs of quality categories represent the cost incurred to “rework a defective product” before the product is shipped to a consumer?
Internal failure cost
which of the following cost of quality categories represent the costs incurred to “perform preventative maintenance on machinery?”
Prevention costs
Fixed costs that are the result of previous managenment decisions that current managers have no control over in the short run are called ______ fixed costs.
Committed
A(n) _______ Costs is a cost whose amount charges in direct proportion to a change in volume.
Variable
Which cost is an example of a fixed cost?
Salary of plant manager
With respect to variable cost per unit, which of the following statements is true?
They will remain the same as pruduction levels change within the relevant range.
With respect to total variable costsm which of the following statements is true?
they will decrease as production with in the relevant range?
With respect to total fixed which of the following statements is true?
They will remain the same as production levels change within the relevant range.
