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Exam 12: Lean Principles, Lean Accounting, and Activity Analysis

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Question 61

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From the above schedule, compute the percentage of non-value-added activities.

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Non-Value-Added Cost...

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Question 62

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Reducing wait time is directly linked to reducing inventory.

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Question 63

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From the above schedule of activity costs, determine the external failure costs.

Which of the following is an example of value-added time?

A college would like to increase enrollment by streamlining the enrollment process.Which of the following would not fall in line with the college goal?

Peters Manufacturing Co.operates in a lean manufacturing environment.The company had scheduled production of 95,000 units during February in its Y12 cell.Actual February production totaled 88,200 units.Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000. Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

Traditional manufacturing emphasizes all of the following except

Make-to-order companies produce mainly to stock inventory.

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

All lead times are considered to be value-added lead time.

From the above schedule of activity costs, determine the appraisal costs.

Which of the following is not an external failure cost?

Prevention costs and appraisal costs are considered costs of controlling quality.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Identity the following by their type of quality cost. -Testing

Which of the following drives work-in-process inventory levels higher?

In a lean environment, process problems are less visible than they are in a traditional environment.

In a lean environment, raw materials are delivered less frequently than in a traditional environment.

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Extreme Wreaths, Inc.makes wreaths in batch sizes of 15 at a time.The cutting & assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process. In a effort to improve the lead time, the company has tried reducing the batch size to 10 units.The new process is as follows: cutting & assembly process - 8 minutes.The decorating process is still 7 minutes per wreath.It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process. a Compute the value-added, non-value-added, and the total lead time of the wreath process for both the old and the new manufacturing process. b Compute the value-added ratio for both the old and new process.Round to the nearest decimal.