NEW
Font size
S
M
L
XL
WorksheetsQuiz 5 Conversion Cycle
Total questions: 20
Worksheet time: 25mins
Name
Class
Date
1.
Which document lists the components needed to manufacture a specific product?
a)
operations list
b)
master production schedule
c)
bill of materials
d)
production order
2.
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
3.
It is a cost system that attempts to trace costs to the activities that create them through cost drivers.
a)
Job-Order Costing
b)
Product Costing
c)
Value Stream Costing
d)
Activity-Based Costing
4.
Which of the following describes a material requisition?
a)
Authorizes the removal of the necessary quantity of raw materials from the storeroom.
b)
Identifies the internal transfer of parts, the location to which they are transferred, and the time of the transfer.
c)
Authorizes the manufacture of a specified quantity of a particular product.
d)
A request by an organization or department of suppliers to bid to supply a fixed asset that possess specific characteristics.
5.
It extends the principles of just-in-time inventory systems to the entire production process to minimize or eliminate inventories of raw materials, work in process, and finished goods. It is often referred to as pull manufacturing because goods are produced in response to customer demand.
a)
Manufacturing Resource Planning (MRP)
b)
Computer-Integrated Manufacturing (CIM)
c)
Activity-Based Costing (ABC)
d)
Lean Manufacturing
6.
In planning and scheduling production, which of the following is not a control process to address the threat of over (under) production?
a)
Accounting analysis of costs arising from product design choices
b)
Production planning systems
c)
Review and approval of production schedules and orders
d)
Restriction of access to production orders and production schedules
7.
Which of the following will not at least minimize the impact from disruption of production activities because of power outage?
a)
Backup power sources
b)
Periodic data backup
c)
Disaster recovery plan
d)
Encryption
8.
<BLANK> involves the use of computers to create, modify, analyze or optimize of product design while a <BLANK> is the use of software to control machine tools and other manufacturing equipment to create the product.
a)
Computer-aided Manufacturing (CAM) and Computer-Aided Design (CAD)
b)
Enterprise Resource Planning (ERP) software and Computer-aided Manufacturing (CAM)
c)
Computer-Aided Design (CAD) and Computer-aided Manufacturing (CAM)
d)
Enterprise Resource Planning (ERP) software and Computer-Aided Design (CAD)
9.
It facilitates coordination and communication among supply chain partners. It is a computer-to-computer exchange where one trading partner creates a transaction in a standard format and sends it to an electronic mailbox, from which another trading partner downloads the information for its own use.
a)
Enterprise Resource Planning (MRP)
b)
Electronic Data Interchange (EDI)
c)
Manufacturing Resource Planning (MRP II)
d)
Radio-Frequency Identification (RFID)
10.
A costing technique that entails on identifying and calculating costs for all the process steps required for providing value to the customer. It maps the activities essential on creating the product and quantifying the costs related to it.
a)
Value Stream Costing
b)
Job-Order Costing
c)
Process Costing
d)
Standard Costing
11.
Which of the following is considered problems on Traditional Cost Accounting?
a)
Inaccurate cost allocation
b)
Promotes nonlinear behavior and conceals within the overhead allocation
c)
Standard cost management reporting are after the fact to address errors
d)
All mentioned are problems under Traditional Costing
12.
Which of the following are advantages of Activity-Bases Costing (ABC)?
a)
Can identify waste and non-added value activities
b)
More accurate on tracking costs from activities and processes
c)
Identifies areas for cost-savings
d)
Performance directly based on personal efficiency of workers and effective utilization of resources
13.
Which of the following is not a primary goal of lean manufacturing?
a)
Push processing
b)
Waste minimization
c)
Inventory reduction
d)
Perfect quality
14.
Which of the following statements is correct?
a)
The use of bar-coding and RFID tags improves efficiency and accuracy of materials handling activities by eliminating manual entry of data.
b)
Accurate production planning requires integrating information about customer orders with information about purchases from suppliers.
c)
Because manufacturing machinery and equipment are often replaced before they are completely worn out, it is important to formally approve and accurately record their sale or disposal.
d)
Move tickets authorizes the removal of the necessary quantity of raw materials from the storeroom.
15.
Which of the following represents a method of managing inventory designed to minimize a company’s investment in inventories by scheduling materials to arrive at the time they are needed for production?
a)
The economic order quantity (EOQ)
b)
Material resource planning (MRP)
c)
First‐in, first‐out (FIFO)
d)
Just‐in‐time (JIT)
16.
Which of the following statements is incorrect?
a)
Manufacturing resources planning (MRP II) has evolved into electronic resource planning (ERP).
b)
Internal control procedures are virtually identical in a world-class manufacturing environment and in a traditional manufacturing environment.
c)
The cost accounting system authorizes the release of raw materials into production.
d)
All mentioned statements are false.
17.
Which of the following is correct?
a)
Batch processing creates a homogeneous product through a continuous series of standard procedures.
b)
Reports generated by the cost accounting system include performance reports and budget reports.
c)
A purchase requisition authorizes the storekeeper to release materials to individuals or work centers in the production process.
d)
Identifying cost drivers is an essential step in implementing the Just-In-Time philosophy.
18.
Which of the following is considered as key segregation of duties issues in the conversion cycle?
a)
The general ledger (GL) function should be separate from departments keeping subsidiary account
b)
Materials stockroom should have custody of the products’ raw materials
c)
Production planning and control should be separate from the work centers
d)
Cost accounting must be separate from the work centers.
e)
Inventory control must be separated from raw materials and finished goods custody
19.
Which of the following is incorrect?
a)
Traditional accounting assumes that products cause costs while ABC assumes that activities cause costs.
b)
JIT supports a push manufacturing process.
c)
Essential activities add value to the organization either through adding value to the customer or to the organization while non-essential activities do not add value.
d)
Just-In-Time (JIT) manufacturing is a model which fosters inventory reduction and even elimination.
20.
Automation of manufacturing can be viewed as a progression beginning with the traditional manufacturing environment. The correct sequence of stages of automation is:
a)
Traditional manufacturing, islands of technology, CIM, process simplification
b)
Traditional manufacturing, islands of technology, process simplification, CIM
c)
Traditional manufacturing, CIM, islands of technology, process simplification
d)
Traditional manufacturing, process simplification, islands of technology, CIM
Reset
