Question 1

The preparation of production orders and routing slips on prenumbered forms minimizes the related risk of:

Accepted Answer

A)  Omitted transactions
B)  Incorrect amounts
C)  Duplicate payroll transactions
D)  Invalid ordersE) B) and D)
F) B) and C)

Question 2

When there is a difference between the inventory records quantity and the physical count of inventory:

Accepted Answer

A)  There is a variance.
B)  The difference can be ignored if minor.
C)  The difference is resolved through inventory reconciliation. 
D)  The difference is ignored if the physical quantity exceeds inventory record quantity.E) B) and C)
F) None of the above

Question 3

Standard costs take into consideration all of the following except:

Accepted Answer

A)  The cost of materials utilized to maintain production equipment
B)  The cost of labor used to operate the production machinery
C)  The cost of the sales manager's salary
D)  Factory overhead items that cannot be directly correlated to product productionE) All of the above
F) None of the above

Question 4

The form that describes the chain of events that constitute a product's production is referred to as the:

Accepted Answer

A)  Operations list
B)  Bill of materials
C)  Engineering
D)  Capital budgetingE) C) and D)
F) B) and D)

Question 5

The major activities within the conversion process include all but

Accepted Answer

A)  Strategic planning that supports the company's operational goals
B)  Optimizing the use of the employees, property, and inventories that are needed in operations
C)  Controlling production flows, ensuring product quality
D)  Preparing the related cost accounting and financial accounting recordsE) A) and B)
F) All of the above

Question 6

Perpetual inventory systems:

Accepted Answer

A)  Record changes in inventory categories only at the end of each period
B)  Record changes in inventory categories only when sales are made
C)  Record changes in inventory categories whenever material is moved from one category to another
D)  Does not address raw materialsE) None of the above
F) All of the above

Question 7

Which of the following activities is not part of the planning component of the logistics function?

Accepted Answer

A)  Research and development
B)  Capital budgeting
C)  Human resource management 
D)  SchedulingE) All of the above
F) C) and D)

Question 8

Which of the following is NOT a responsibility given to the individuals making purchases for the company?

Accepted Answer

A)  Purchasing raw materials for production
B)  Specifying the order and sequence of payments to vendors
C)  Selecting vendors
D)  Specifying the quantities to be orderedE) All of the above
F) A) and B)

Question 9

The final hub in the logistics function which involves a follow-up to production, where the products are inspected before they are moved to the warehouse or shipping area is referred to as:

Accepted Answer

A)  Quality control
B)  Shipping notice
C)  Purchase requisition
D)  WarehousingE) All of the above
F) A) and D)

Question 10

Variances:

Accepted Answer

A)  Represent the differences between actual costs and the standard costs applied
B)  Represent the difference between design specifications and production results
C)  Represent flaws in the production results
D)  Each of the answers is correct.E) A) and B)
F) A) and C)

Question 11

Which of the following involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold?

Accepted Answer

A)  Just-in-time production systems
B)  Manufacturing resource planning 
C)  Earning management
D)  Absorption costing E) All of the above
F) A) and D)

Question 12

The term conversion processes is often used synonymously with:

Accepted Answer

A)  Operations
B)  Production
C)  Manufacturing
D)  All of the aboveE) A) and B)
F) None of the above

Question 13

The reconciliation of time sheets with production reports for work-in-process and finished inventories minimizes the related risk of all of the following EXCEPT:

Accepted Answer

A)  Omitted or duplicate payroll transactions
B)  Timing issues
C)  Incorrect amounts
D)  Lost or stolen inventoryE) B) and C)
F) A) and B)

Question 14

Manufacturing has changed in recent years as a result of each of the following factors except:

Accepted Answer

A)  Globalization
B)  Technological advances
C)  Increased competition
D)  Lack of economic prosperityE) All of the above
F) C) and D)

Question 15

Segregation of duties is accomplished by which of the following?

Accepted Answer

A)  Accounting personnel having restricted access to physical inventory 
B)  Warehouse personnel signing all documents related to material movements 
C)  Production personnel restricted to one manufacturing station at all times 
D)  None of the aboveE) A) and B)
F) A) and C)

Question 16

The ________ _________ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

Accepted Answer

A)  Raw materials
B)  Inventory warehousing
C)  Inventory stores
D)  Quality controlE) All of the above
F) B) and C)

Question 17

The operations component of the logistics function has which of the following elements?

Accepted Answer

A)  Maintenance and control
B)  Production
C)  Inventory control
D)  Capital budgetingE) A) and B)
F) C) and D)

Question 18

Manpower displacement through automation:

Accepted Answer

A)  Is considered a benefit through cost/benefit analysis
B)  Should be a concern of management
C)  Is the goal of proper engineering
D)  Seldom results in termination of employeesE) A) and D)
F) A) and B)

Question 19

Security of assets and documents include all of the following except:

Accepted Answer

A)  Water sprinklers
B)  Adequate insurance coverage
C)  Restricted movement of office supplies
D)  Security guardsE) B) and C)
F) B) and D)

Question 20

Functions of corporate governance includes all of the following except:

Accepted Answer

A)  Management oversight
B)  Earnings management
C)  Financial stewardship
D)  Internal control systemE) All of the above
F) None of the above

Exam 11: Conversion Processes and Controls

The form that describes the chain of events that constitute a product's production is referred to as the:

Correct AnswerverifiedShow Answer

The operations component of the logistics function has which of the following elements?

Correct AnswerverifiedShow Answer

Which of the following involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold?

Correct AnswerverifiedShow Answer

Manufacturing has changed in recent years as a result of each of the following factors except:

Correct AnswerverifiedShow Answer

Which of the following activities is not part of the planning component of the logistics function?

Correct AnswerverifiedShow Answer

Functions of corporate governance includes all of the following except:

Correct AnswerverifiedShow Answer

The final hub in the logistics function which involves a follow-up to production, where the products are inspected before they are moved to the warehouse or shipping area is referred to as:

Correct AnswerverifiedShow Answer

Security of assets and documents include all of the following except:

Correct AnswerverifiedShow Answer

When there is a difference between the inventory records quantity and the physical count of inventory:

Correct AnswerverifiedShow Answer

The term conversion processes is often used synonymously with:

Correct AnswerverifiedShow Answer

Segregation of duties is accomplished by which of the following?

Correct AnswerverifiedShow Answer

The ________ _________ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

Correct AnswerverifiedShow Answer

Standard costs take into consideration all of the following except:

Correct AnswerverifiedShow Answer

Variances:

Correct AnswerverifiedShow Answer

Perpetual inventory systems:

Correct AnswerverifiedShow Answer

The preparation of production orders and routing slips on prenumbered forms minimizes the related risk of:

Correct AnswerverifiedShow Answer

The major activities within the conversion process include all but

Correct AnswerverifiedShow Answer

Manpower displacement through automation:

Correct AnswerverifiedShow Answer

The reconciliation of time sheets with production reports for work-in-process and finished inventories minimizes the related risk of all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following is NOT a responsibility given to the individuals making purchases for the company?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The _ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified