Question 1

Choose from the following selections the best definition of a production plan.
A) A document that specifies the components of a product, including descriptions and quantities of required raw materials and parts
B) A document that provides a sequence of production events
C) A document that provides a long-term outline of what and when products will be manufactured
D) A document that provides a short-term allocation of plant machinery and resources to the manufacturing of products

Accepted Answer

A production plan is a long-term outline that details what products will be manufactured and when, ensuring that production processes align with business goals and market demand.

Question 2

Choose from the following selections the best definition of a production schedule.
A) A document that specifies the components of a product, including descriptions and quantities of required raw materials and parts
B) A document that provides a sequence of production events
C) A document that provides a long-term outline of what and when products will be manufactured
D) A document that provides a short-term allocation of plant machinery and resources to the manufacturing of products

Accepted Answer

A production schedule is a document that details the short-term allocation of resources, including machinery and labor, to ensure efficient manufacturing of products.

Question 3

Choose from the following selections the best definition of a master production schedule (MPS).
A) A document where every production operation is scheduled at a specific calendar time, resources and workers are assigned, and steps are outlined to utilize all resources effectively
B) A document that authorizes the movement of raw materials from inventory into production
C) A barcode tag to authorize and track movements of a single manufacturing job from one location in production to another
D) A document that summarizes the total manufacturing cost of a product, which is important in recording the cost of inventory and cost of goods sold in the general ledger

Accepted Answer

A master production schedule (MPS) is a detailed plan that outlines what is to be produced, in what quantities, and when, ensuring efficient use of resources and meeting customer demand.

Question 4

Choose from the following selections the best definition of a materials requisition request.
A) A document where every production operation is scheduled at a specific calendar time, resources and workers are assigned, and steps are outlined to utilize all resources effectively
B) A document that authorizes the movement of raw materials from inventory into production
C) A barcode tag to authorize and track movements of a single manufacturing job from one location in production to another
D) A document that summarizes the total manufacturing cost of a product, which is important in recording the cost of inventory and cost of goods sold in the general ledger

Accepted Answer

A materials requisition request is a document that authorizes the movement of raw materials from inventory into production, ensuring that materials are available for manufacturing as needed.

Question 5

Choose from the following selections the best definition of a move ticket.
A) A document where every production operation is scheduled at a specific calendar time, resources and workers are assigned, and steps are outlined to utilize all resources effectively
B) A document that authorizes the movement of raw materials from inventory into production
C) A barcode tag to authorize and track movements of a single manufacturing job from one location in production to another
D) A document that summarizes the total manufacturing cost of a product, which is important in recording the cost of inventory and cost of goods sold in the general ledger

Accepted Answer

A move ticket is a barcode tag or document used to authorize and track the movement of a single manufacturing job from one location in production to another.

Question 6

Choose from the following selections the best definition of a production report.
A) A document where every production operation is scheduled at a specific calendar time, resources and workers are assigned, and steps are outlined to utilize all resources effectively
B) A document that authorizes the movement of raw materials from inventory into production
C) A barcode tag to authorize and track movements of a single manufacturing job from one location in production to another
D) A document that summarizes the total manufacturing cost of a product, which is important in recording the cost of inventory and cost of goods sold in the general ledger

Accepted Answer

A production report is primarily used to summarize the manufacturing costs associated with a product, including direct materials, direct labor, and manufacturing overhead. This information is crucial for accurately recording inventory costs and the cost of goods sold in a company's financial records.

Question 7

Which control activity listed below is a product development control activity?
A) Regularly analyze warranty and repair costs.
B) Manufacture products according to authorized BOM, BOO, and MPS documents.
C) Automate manufacturing operations.
D) Adhere to industry regulations and safety standards.

Accepted Answer

Analyzing warranty and repair costs is a product development control activity because it helps identify issues with products that can lead to improvements in design and manufacturing processes.

Question 8

Which control activity listed below is a production planning and scheduling control activity?
A) Regularly analyze warranty and repair costs.
B) Manufacture products according to authorized BOM, BOO, and MPS documents.
C) Automate manufacturing operations.
D) Adhere to industry regulations and safety standards.

Accepted Answer

Manufacturing products according to authorized Bill of Materials (BOM), Bill of Operations (BOO), and Master Production Schedule (MPS) documents is a direct activity in production planning and scheduling. These documents ensure that production is planned, resources are allocated efficiently, and the manufacturing process is scheduled according to the plan.

Question 9

Which control activity listed below is a manufacturing operations control activity?
A) Regularly analyze warranty and repair costs.
B) Manufacture products according to authorized BOM, BOO, and MPS documents.
C) Automate manufacturing operations.
D) Adhere to industry regulations and safety standards.

Accepted Answer

The answer of Which control activity listed below is a...

Question 10

Which control activity listed below is a quality management control activity?
A) Regularly analyze warranty and repair costs.
B) Manufacture products according to authorized BOM, BOO, and MPS documents.
C) Automate manufacturing operations.
D) Adhere to industry regulations and safety standards.

Accepted Answer

The answer of Which control activity listed below is a...

Question 11

Which is the best definition of inventory management?
A) Inventory management involves overseeing the processes of ordering, storing, and using a business's inventory.
B) Inventory management involves overseeing the life cycle of a product from procuring raw materials through customer sales.
C) Inventory management involves testing products to ensure that they meet regulatory and corporate specifications.
D) Inventory management involves the research and testing of new products or potential changes to existing products.

Accepted Answer

Inventory management primarily focuses on the processes related to ordering, storing, and utilizing the inventory of a business, ensuring that there is always an optimal level of stock available to meet demand without incurring unnecessary costs or losses.

Question 12

Which is the best definition of supply chain management?
A) Inventory management involves overseeing the processes of ordering, storing, and using a business's inventory.
B) Inventory management involves overseeing the life cycle of a product from procuring raw materials through customer sales.
C) Inventory management involves testing products to ensure that they meet regulatory and corporate specifications.
D) Inventory management involves the research and testing of new products or potential changes to existing products.

Accepted Answer

Supply chain management encompasses the entire life cycle of a product, from the procurement of raw materials to the delivery of the final product to the customer, which is accurately described in option B.

Question 13

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: ________, the cost of direct labor, and the cost of manufacturing overhead.
A) the cost of direct materials
B) the cost of shipping
C) the cost of sales, general and administration (SG&A)
D) the expense of IT

Accepted Answer

GAAP (Generally Accepted Accounting Principles) for financial reporting specifies that a manufacturer's inventory and cost of goods sold should include the cost of direct materials, the cost of direct labor, and the cost of manufacturing overhead. This is because these are the primary costs associated with producing goods.

Question 14

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: the cost of direct materials, ________, and the cost of manufacturing overhead.
A) the cost of shipping
B) the cost of direct labor
C) the cost of sales, general and administration (SG&A)
D) the expense of IT

Accepted Answer

Under GAAP, a manufacturer's inventory and cost of goods sold include the cost of direct materials, the cost of direct labor, and the cost of manufacturing overhead. Shipping, SG&A, and IT expenses are not included in the calculation of inventory or cost of goods sold.

Question 15

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: the cost of direct materials, the cost of direct labor, and
A) the cost of shipping.
B) the cost of sales, general and administration (SG&A).
C) the cost of manufacturing overhead.
D) the expense of IT.

Accepted Answer

GAAP requires that inventory and cost of goods sold include direct materials, direct labor, and manufacturing overhead. Manufacturing overhead includes all costs associated with the production process that are not directly traceable to the product, such as factory rent, utilities, and equipment depreciation, but does not include shipping, SG&A expenses, or IT expenses, which are considered operating expenses.

Question 16

Traditional cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes job-order costing?
A) Job-order costing assigns costs to products or services that meet specific needs of an individual customer.
B) Job-order costing determines the total cost of the production and averages it over the units produced.
C) Job-order costing identifies specific business activity pools or fundamental business. processes and then assigns costs based on the resources consumed by that activity or process.
D) Job-order costing assigns costs based on the machinery they are manufactured on.

Accepted Answer

Job-order costing is used to assign costs to products or services that are typically unique or custom-made, meeting the specific needs of individual customers. This method is in contrast to process costing, which averages costs over all units produced.

Question 17

Traditional cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes process costing?
A) Process costing assigns costs to products or services that meet specific needs of an individual customer.
B) Process costing determines the total cost of the production and averages it over the units produced.
C) Process costing identifies specific business activity pools or fundamental business processes and then assigns costs based on the resources consumed by that activity or process.
D) Process costing assigns costs based on the machinery they are manufactured on.

Accepted Answer

Process costing averages the total production cost over all units produced, making it suitable for industries where identical products are mass-produced.

Question 18

Traditional cost accounting assigns production costs differently, depending on the product or service. Which cost accounting method would likely be used for pumps built to specific customer specification?
A) Activity-based costing
B) Machine setup costing
C) Job-order costing
D) Process costing

Accepted Answer

Job-order costing is used for products that are manufactured to specific customer specifications, allowing costs to be tracked and assigned to each individual job or order, which is suitable for custom-built items like pumps.

Question 19

Traditional cost accounting assigns production costs differently, depending on the product or service. Which cost accounting method would likely be used for a mass-produced frozen cookie mix?
A) Activity-based costing
B) Machine setup costing
C) Job-order costing
D) Process costing

Accepted Answer

Process costing is used for products that are mass-produced and identical, making it suitable for a product like frozen cookie mix. This method averages the production costs over all units produced.

Question 20

For accounting purposes, the salaries, wages, and benefit expenses of employees directly involved in the production process are called what?
A) Direct labor
B) Indirect factory labor
C) Direct material costs
D) Indirect material costs

Accepted Answer

Direct labor costs are the salaries, wages, and benefits for employees who are directly involved in the production of goods. These costs are directly attributable to the production process.

Quiz 11: Conversion Processes

Choose from the following selections the best definition of a production plan.

Choose from the following selections the best definition of a production schedule.

Choose from the following selections the best definition of a master production schedule (MPS) .

Choose from the following selections the best definition of a materials requisition request.

Choose from the following selections the best definition of a move ticket.

Choose from the following selections the best definition of a production report.

Which control activity listed below is a product development control activity?

Which control activity listed below is a production planning and scheduling control activity?

Which control activity listed below is a manufacturing operations control activity?

Which control activity listed below is a quality management control activity?

Which is the best definition of inventory management?

Which is the best definition of supply chain management?

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: ________, the cost of direct labor, and the cost of manufacturing overhead.

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: the cost of direct materials, ________, and the cost of manufacturing overhead.

GAAP for financial reporting requires that a manufacturer's inventory on the balance sheet and cost of goods sold on the income statement consist of: the cost of direct materials, the cost of direct labor, and

Traditional cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes job-order costing?

Traditional cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes process costing?

Traditional cost accounting assigns production costs differently, depending on the product or service. Which cost accounting method would likely be used for pumps built to specific customer specification?

Traditional cost accounting assigns production costs differently, depending on the product or service. Which cost accounting method would likely be used for a mass-produced frozen cookie mix?

For accounting purposes, the salaries, wages, and benefit expenses of employees directly involved in the production process are called what?