Quiz Four

Question 1

The AIS compiles and feeds information among the business cycles. What is the relationship between the revenue and production cycles regarding the exchange of information?

Answer 1

The revenue cycle provides sales forecast and customer order information to the production cycle, but the production cycle sends information back to revenue about finished goods production

Question 2

The production cycle is different than the revenue and expenditure cycles for all the following reasons except

Answer 2

there are no direct external data sources or destinations

Question 3

The operations list shows

Answer 3

1. the labor and machine requirements
2. the steps and operations in the production cycle
3. the time expected to complete each step or operation
4. all of the above*

Question 4

An MRP inventory system reduces inventory levels by

Answer 4

reducing the uncertainty about when materials are needed

Question 5

Push manufacturing is officially known as

Answer 5

manufacturing resource planning (MRP)

Question 6

A master production schedule is used to develop detailed

Answer 6

timetables of daily production and determine raw material needs

Question 7

The document that authorizes the transfer of raw materials from the storeroom to the production floor is referred to as

Answer 7

A materials requisition

Question 8

The use of various forms of information technology in the production process is referred to as

Answer 8

computer integrated manufacturing

Question 9

Overproduction or underproduction can be a threat to an organization. To which process or activity does this threat relate?

Answer 9

Planning and scheduling

Question 10

In an Activity-Based Costing (ABC) system, a cause-and-effect relationship is known as a

Answer 10

cost driver

Question 11

Dolly Salem owns and operates a bakery in Charleston, South Carolina. She maintains a file that lists the sequence of procedures required to make each of her famous cakes and cookies. These instructions are examples of a(an)

Answer 11

operations list

Question 12

Wee Bee Trucking determines the cost per delivery by averaging total cost over number of deliveries. This is an example of ________ costing

Answer 12

Job order

Question 13

Using technology such as robots and computer-controlled machinery to shift from mass production to custom order manufacturing is referred to as

Answer 13

computer integrated manufacturing

Question 14

Which objective listed below is not a cost accounting objective for the production cycle?

Answer 14

provide tests of audit control functions as part of the AIS