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CHAPTER 27(12): LEAN PRINCIPLES, LEAN ACCOUNTING, AND
ACTIVITY ANALYSIS
1.
Lean manufacturing focuses on reducing time, cost, and poor quality in processes.
a.
True
b.
False
2.
The lean philosophy views inventory as a necessary buffer to protect against process problems.
a.
True
b.
False
3.
The lean manufacturing philosophy views inventory as an unnecessary waste of resources.
a.
True
b.
False
4.
In the lean principles philosophy, unexpected downtime is the result of unreliable processes.
a.
True
b.
False
5.
Lead time is the process time between start and completion.
a.
True
b.
False
6.
All lead times are considered to be value-added lead time.
a.
True
b.
False
7.
Lead time includes both value-added time and non-value-added time.
a.
True
b.
False
8.
Lead time reduction can be a cost-saving goal for any processed item.
a.
True
b.
False
9.
Reducing wait time is not linked to reducing inventory.
a.
True
b.
False
10.
Reducing wait time is directly linked to reducing inventory.
a.
True
b.
False
11.
Lean manufacturing favors organizing work around products rather than around processes.
a.
True
b.
False
12.
Lean manufacturing favors organizing work around processes rather than around products.
a.
True
b.
False
13.
Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.
a.
True
b.
False
14.
A setup is the time required to prepare an operation for a new production run.
a.
True
b.
False
15.
Long setups and large batch sizes result in smaller inventories.
a.
True
b.
False
16.
Within-batch wait time increases total lead time.
a.
True
b.
False
17.
Large batch sizes increase lead time.
a.
True
b.
False
18.
Lean manufacturing is also called make-to-stock manufacturing.
a.
True
b.
False
19.
Lean manufacturing is also called make-to-order manufacturing.
a.
True
b.
False
20.
A make-to-order company matches its production schedules to actual customer orders.
a.
True
b.
False
21.
Make-to-order companies produce mainly to stock inventory.
a.
True
b.
False
22.
Make-to-order companies typically produce in small batch sizes.
a.
True
b.
False
23.
Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.
a.
True
b.
False
24.
Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers
and
their suppliers.
a.
True
b.
False
25.
A process-oriented layout segments production facilities into functional departments.
a.
True
b.
False
26.
In a push manufacturing system, raw materials are released to production based on forecasted demand.
a.
True
b.
False
27.
In a push manufacturing system, raw materials are released to production based on actual customer orders.
a.
True
b.
False
28.
In a pull manufacturing system, raw materials are released to production based on actual customer orders.
a.
True
b.
False
29.
In a pull manufacturing system, raw materials are released to production based on forecasted demand.
a.
True
b.
False
30.
Setups are a significant time-consuming activity in traditional production environments.
a.
True
b.
False
31.
In a lean environment, raw materials are delivered less frequently than in a traditional environment.
a.
True
b.
False
32.
In a lean environment, raw materials are delivered more frequently than in a traditional environment.
a.
True
b.
False
33.
In a lean environment, process problems are more visible than they are in a traditional environment.
a.
True
b.
False
34.
Under the lean production concept, employees are better utilized if they are experts in one operation rather
than
wasting time training them to learn various production operations.
a.
True
b.
False
35.
One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during
volatile
times such as strikes, weather, etc. than when using the traditional philosophy.
a.
True
b.
False
36.
In a lean environment, process problems are less visible than they are in a traditional environment.
a.
True
b.
False
37.
Employee involvement does not include performing any indirect manufacturing functions.
a.
True
b.
False
38.
Push manufacturing is also referred to as make-to-order processing.
a.
True
b.
False
39.
Push manufacturing (made-to-stock) is a traditional approach to manufacturing.
a.
True
b.
False
40.
In a lean environment, operations only respond to customer orders.
a.
True
b.
False
41.
A lean nonmanufacturing process can be accomplished by consolidating, in one area, all of the services provided
to
a customer.
a.
True
b.
False
42.
In a lean system, the work in process and raw materials inventory accounts are combined.
a.
True
b.
False
43.
In a lean system, there are more transactions to record than there are in a traditional system.
a.
True
b.
False
44.
In a lean system, there are fewer transactions to record than there are in a traditional system.
a.
True
b.
False
45.
In a lean system, direct labor is included in conversion costs.
a.
True
b.
False
46.
In a lean system, indirect labor is traced directly to product cells.
a.
True
b.
False
47.
A backflush accounting system uses work in process inventories as control points between each process step.
a.
True
b.
False
48.
Financial accounting information is used more often for long-term operating decisions and nonfinancial
information
is used more often for day-to-day decisions.
a.
True
b.
False
49.
Nonfinancial accounting information is used more often for long-term operating decisions than is
financial
information.
a.
True
b.
False
50.
A nonfinancial measure is operating information that has not been translated into dollars.
a.
True
b.
False
51.
In a lean environment, the journal entry to record raw materials purchases would include a credit to the
raw
materials inventory account.
a.
True
b.
False
52.
In a lean environment, the journal entry to record raw materials purchases would include a debit to the raw and
in
process inventory account.
a.
True
b.
False
53.
In a lean environment, the journal entry to record conversion costs would include a debit to the raw and in
process
inventory account.
a.
True
b.
False
54.
In a lean environment, the journal entry to record conversion costs would include a debit to the
manufacturing
overhead control account.
a.
True
b.
False
55.
The budgeted cell conversion cost rate is very similar to the predetermined factory rate because both include
only
factory overhead costs.
a.
True
b.
False
56.
Costs of controlling quality include prevention costs and internal failure costs.
a.
True
b.
False
57.
Prevention costs and appraisal costs are considered costs of controlling quality.
a.
True
b.
False
58.
Costs of failing to control quality include prevention costs and external failure costs.
a.
True
b.
False
59.
It is easier to quantify costs of controlling quality than the costs of failing to control quality.
a.
True
b.
False
60.
By spending more in costs of controlling quality, the costs of failing to control quality will decrease.
a.
True
b.
False
61.
Which of the following is an example of value-added time?
a.
Processing time
b.
Wait time during inspection
c.
Wait time in inventory
d.
Both B and C
62.
Which of the following results in long lead time?
a.
long setup times
b.
large batch sizes
c.
large inventories
d.
all of the above
63.
The lean philosophy attempts to reduce setup times, which will:
a.
increase batch sizes
b.
not affect batch sizes
c.
increase within-batch wait time
d.
decrease within-batch wait time
64.
What do lean manufacturers demand from their vendors?
a.
High quality materials
b.
Low cost materials
c.
On-time deliveries
d.
All of the above
65.
How are the objectives of lean manufacturing achieved?
a.
Product-oriented production layout
b.
Employee involvement
c.
Supplier partnering
d.
All of the above
66.
Which of the following is (are) objective(s) of lean manufacturing?
a.
eliminating waste
b.
increasing inventory levels
c.
increased production speed
d.
all of the above
67.
Inventory reduction is a principle.
a.
lean
b.
traditional processing
c.
economic
d.
wait time
68.
Set up time is disregarded as an improvement priority under the manufacturing concept.
a.
traditional
b.
lean
c.
total quality management
d.
product cost
69.
manufacturing philosophy emphasizes quality and zero defects.
a.
Traditional
b.
Lean
c.
Zero-Based
d.
Chinese
70.
manufacturing deals with several suppliers in hopes of finding the best price.
a.
Traditional
b.
Lean
c.
Economic
d.
Productivity improvement
71.
Lean manufacturing philosophy reduces all of the following except
a.
inventory
b.
setup time
c.
lead time
d.
conversion costs
