Which TWO of the following statements are true in the context of a just in time (JIT) inventory system?

(i) It can result in much reduced inventory holding costs

(ii) It inevitably increases the need for safety inventories

(iii) It requires suppliers to operate sound quality control procedures

(iii) It works best if supplies are obtained from a number of different suppliers

A company operates in export and import markets, and its operational cash flows are affected by movements in exchange rates, which are highly volatile. As a result, the company has great difficulty in establishing a budgeting system that is reliable for more than three months ahead.

Which of the following approaches to budgeting would be most appropriate for this company's situation?

Tech World is a company which manufactures mobile phone handsets. From its past experiences, Tech World has realised that whenever a new design engineer is employed, there is a learning curve with a 75% learning rate which exists for the first 15 jobs.

A new design engineer has just completed their first job in five hours.

Note. At the learning rate of 75%, the learning factor (b) is equal to –0·415.

How long would it take the design engineer to complete the sixth job?

Which of the following provides the most suitable definition of the controllability principle in business?

The following statements have been made about learning curves.

(1) Learning curves are easier to apply in companies with a high labour turnover than those with a lower rate of staff turnover.

(2) Learning rates are not affected by time gaps between the production of additional units of a product.

Which of the above statements is/are true?

In which TWO of the following ways might a budgetary control be a disincentive to management to achieve targeted performance?

(i) Control reports are provided too late

(ii) Targets are too easy

(iii) Targets are not communicated

(iv) Budgets are prepared on a bottom-up basis

Which TWO of the following points state why it is generally regarded to be more difficult to set standards for service function costs than for manufacturing costs? (i) There is often no measurable output from service functions

(ii) The activities of many service functions are of a non-standard nature

(iii) The costs of many service functions are predominantly variable

(iv) Tasks in many service industries are usually quick and simple

Which of the following correctly describes a standard hour?

A budget that is continuously updated by adding a further accounting period (a month or quarter) when the earlier accounting period has expired is known as which of the following?

Select...

What is an attainable standard?

Crush Co has developed a new product. The first batch of 100 units will take 1,500 labour hours to produce. Crush Co has estimated that there will be an 85% learning curve that will continue until 6,400 units have been produced. Batches after this level will each take the same amount of time as the 64th batch. The batch size will always be 100 units.

Note. The learning index for an 85% learning curve is –0.2345

Ignore the time value of money.

What is the cumulative average time per batch for the first 64 batches?

Crush Co has developed a new product. The first batch of 100 units will take 1,500 labour hours to produce. Crush Co has estimated that there will be an 85% learning curve that will continue until 6,400 units have been produced. Batches after this level will each take the same amount of time as the 64th batch. The batch size will always be 100 units.

Note. The learning index for an 85% learning curve is –0.2345

Ignore the time value of money.

The total time for the first 16 batches of 100 units was 9,000 hours.

What was the actual learning rate closest to (to the nearest %)?

Crush Co has developed a new product. The first batch of 100 units will take 1,500 labour hours to produce. Crush Co has estimated that there will be an 85% learning curve that will continue until 6,400 units have been produced. Batches after this level will each take the same amount of time as the 64th batch. The batch size will always be 100 units.

Note. The learning index for an 85% learning curve is –0.2345

Ignore the time value of money.

The following statements have been made about Crush Co and the learning curve:

(1) Decisions about allocating resources and costing the new product should be based on the time taken to produce the 64th batch.

(2) The learning process does not start until the second batch comes off the production line.

Which of the above statements is/are true?

Crush Co has developed a new product. The first batch of 100 units will take 1,500 labour hours to produce. Crush Co has estimated that there will be an 85% learning curve that will continue until 6,400 units have been produced. Batches after this level will each take the same amount of time as the 64th batch. The batch size will always be 100 units.

Note. The learning index for an 85% learning curve is –0.2345

Ignore the time value of money.

Are the following statements about the learning curve true or false?

(i) The learning curve must assume a certain degree of motivation among employees of Crush Co.

(ii) The learning curve phenomenon is not always present.

Crush Co has developed a new product. The first batch of 100 units will take 1,500 labour hours to produce. Crush Co has estimated that there will be an 85% learning curve that will continue until 6,400 units have been produced. Batches after this level will each take the same amount of time as the 64th batch. The batch size will always be 100 units.

Note. The learning index for an 85% learning curve is –0.2345

Ignore the time value of money.

Which of the following conditions, if present in Crush Co, would allow the learning curve to flourish?  T 