AIS Chapter 7
An example of automation of manufacturing planning is
Materials Requirements Planning
In traditional firms, information reporting
provides financially oriented information relating to operations
All of the following are documents in batch process production systems except
purchase order
Characteristics of Just-In-Time manufacturing include all of the following except
push manufacturing
A move ticket
records the work done in each work center
Firms implement a Just-In-Time inventory approach to
reduce investment in inventories
Process simplification focuses on
reducing the complexity of the physical manufacturing layout of the shop floor
The SAP R/3 system provides pre-defined modules to support business processes in the all of the following categories except
strategic
What is the economic order quantity if the annual demand is 10,000 units, set up cost of placing each order is $3 and the holding cost per unit per year is $2?
174
If the daily demand is 40 units and the lead time is 12 days, the reorder point is
480 units
The purpose of the cost accounting system is to
produce information for inventory valuation
An example of automation of manufacturing design is
Computer Aided Engineering
A manufacturing process that is organized into group technology cells utilizing no human labor is called
Computer Integrated Manufacturing
All of the following are characteristics of batch processing except
batches are produced in accordance with detailed customer specifications
Which process creates a homogeneous product through a continuous series of standard procedures
continuous process
Which statement is not correct? (activity/cost object)
cost object describes the work performed in a firm
Which item does not describe a world-class company?
customers in a world-class company are external departments only
Which statement is not correct?
general ledger creates a new cost record upon receipt of a work order from production planning and control
Manufacturing flexibility incorporates four characteristics. These include all of the following except
high inventory levels
Types of information provided by Activity Based Costing include
identification of cost drivers
The internal control significance of the excess materials requisition is that it
identifies materials used in production that exceed the standard amount allowed
Deficiencies of the traditional cost accounting information system include all of the following except
immediate feedback about deviations from the norm
Which statement is not correct
in world-class manufacturing firms, quality control activities at the end of the process are essential
Which situation violates the segregation of functions control procedure?
inventory control maintains custody of inventory items
Firms are adopting Activity Based Costing (ABC) because
it more accurately allocates costs to products
Computer integrated manufacturing groups all of the following technologies except
materials requirements planning
The storekeeper releases raw materials based on the
materials requisition
An example of a continuous process is the production of
milk products
Which subsystem is not a part of the production system?
monitoring the flow of cost information related to production
Inventory control performs all of the following tasks except it
prepares a materials requisition for each production batch
The cost of poor quality includes all of the following except
proceeds from the sale of scrap
All of the following are internal control procedures that should be in place in the conversion cycle except
retention of excess materials by work centers
Which of the following is not a category of critical success factors in most manufacturing companies?
revenue generation
A flexible manufacturing system
shortens the physical distance between activities
The production schedule is
the formal plan and authority to begin production
Transaction authorization occurs in a traditional manufacturing environment in all of the following ways except
the sales department modifies work orders to match changes in demand
When determining which items to produce, a firm must know
the sales forecast
Which of the following is not an assumption of the Economic Order Quantity model?
total cost per year of placing orders is fixed
The stages of the automation continuum are (in order)
traditional, islands of technology, process simplification, computer-integrated manufacturing
Firms hold safety stock to compensate for
variations in lead time or daily demand