1. The cost of receiving inventory is regarded as ______. (Points: 1) an ordering cost a carrying cost a purchasing cost a cost of not carrying goods in stock
2. Which of the following statements is false concerning electronic data interchange? (Points: 1) Electronic data interchange (EDI) is essential in a pull system. One of the benefits realized by EDI organizations is a faster processing of transactions. Electronic data interchange is essential in a push system. Electronic data interchange refers to computer-to-computer exchange of information.
3. Reducing setup time is a major aspect of ______. (Points: 1) all push inventory systems the determination of safety stock quantities a JIT system an EOQ system
4. When JIT is implemented, which of the following changes in the accounting system would not be expected? (Points: 1) fewer cost allocations elimination of standard costs combining labor and overhead into one product cost category combing raw material and materials in work-in-process into one product cost category
5. With JIT manufacturing, which of the following costs would be considered an indirect product cost? (Points: 1) cost of specific-purpose equipment cost of equipment maintenance property taxes on the plant salary of a manufacturing cell worker
6. An implication of the demand-pull nature of the JIT production process is that ______. (Points: 1) finished goods inventories must be available to meet customer demand, although raw material is delivered on an as-needed basis more storage space for inventories is necessary finished products are packaged and shipped to customers immediately, thus requiring minimal finished goods inventories problem areas become less visible as inventories are reduced
7. A kanban plays an important role in ______. (Points: 1) JIT EOQ ABC CPM
8. U-shaped groupings of workers and machines that improve materials handling and flow are known as ______. (Points: 1) manufacturing cells efficiency stations multi-flow modules productivity islands
9. A key element of Japan's success in world markets is ______. (Points: 1) the elimination of waste in all operations automation of the billing function inefficient labor forces in competing countries the verification procedures incorporated into computer programs
10. Flexible manufacturing systems are ______. (Points: 1) designed to provide more flexibility in a firm's manufacturing process by using computer-aided machinery the same as computer-aided design systems commonly used by firms that need to make large quantities of one product are very complicated and cause increased defect rates in output
11. Variance analysis would be appropriate to measure performance in ______(Points: 1) profit centers investment centers cost centers all of the above
12. Net cash flow could be used to measure performance in ______. (Points: 1) cost centers and investment centers revenue centers and profit centers revenue centers and investment centers profit and investment centers
13. A company has set a target rate of return of 16% for its investment center. An investment center manager in this company would ______. (Points: 1) acquire assets that would increase divisional income by more than 16% sell all assets that do not generate divisional income of more than 16% acquire assets that would increase sales by more than 16% acquire any technologically advanced assets that would cause costs to be reduced by 16% or more
14. The Statement of Cash Flows indicates the cash inflows and outflows from ______. (Points: 1) investing, financing, and borrowing activities operating, investing, and sending activities merchandising, financing, and investing activities operating, investing, and financing activities
15. The return on investment (ROI) ratio measures ______. (Points: 1) only asset turnover only earnings as a percent of sales both asset turnover and earnings as a percent of sales asset turnover and earnings as a percent of sales, correcting for the effects of differing depreciation methods
16. Presently, the Classic Book Division of Griffin Publishing Corporation has a profit margin of 30%. If total sales rise by $100,000, the net result will be ______. (Points: 1) an increase in the profit margin ratio to above 30% a decrease in the profit margin ratio to below 30%. no change in the profit margin ratio.
a change in the profit margin ratio that cannot be determined from this
information.