Discuss some of the limitations and problems that companies may encounter when implementing a JIT system.
Q: Which of the following is false regarding activity-based costing (ABC)? a. Companies that have…
A: Activity based costing is a type and method of costing methodology, in which all indirect costs or…
Q: “A branch office or business segment that shows negative operating income should be shut down.” Do…
A: Operating Income:Operating income is income which is earned by carrying out the regular business…
Q: T. Turnover due to low job satisfaction may be desirable if it facilitates the introduction of new…
A:
Q: Which of the following is NOT a principle of lean manufacturing? a. Products are pushed from the…
A: Lean manufacturing: It is method that is used with focus of minimizing the waste that are within a…
Q: Perverse Effects of Some Performance Measures. There is often more than one way to improve a…
A: Performance Measure It is a measure of the results and outcomes of a company's operations which…
Q: Southwest Airlines' activities to achieve lower cost have been well documented in academics and…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :
Q: A business that has a low operating leverage is considered normal for highly automated manufacturing…
A: Low operating leverage is preferable only for those organizations which has low fixed costs
Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Produce…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: These are measures not found in the chart of accounts, such as customer satisfaction scores or…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
Q: An example of a nonfinancial measure for customer satisfaction is: delivery delay…
A: As per Bartleby guidelines, only first question can be answered here (out of 3 different questions).…
Q: What is turnover? What does it measure? Describe this in your own words. Writing a formula is not a…
A: What is the Turnover Turnover is the Gross sale made by the company. A company may selling the…
Q: In a strategy meeting, the president of a manufacturing company said, “If we were to raise the price…
A: Unit contribution margin is calculated by subtracting variable expenses including manufacturing,…
Q: Break-even analysis is of limited use to management because a company cannot survive by just…
A: Break even point is where fixed cost and variable cost are equal to selling costs it gives an…
Q: There is often more than one way to improve a performance measure. Unfortunately, some of the…
A:
Q: Consultant Frank Alvarez recently commented that the mostcommon error made by his clients is…
A: Given case is: Consultant Frank Alvarez recently commented that the mostcommon error made by his…
Q: Which of the following situations is most likely to pose a problem for companies that use return on…
A: Solution Concept Return on investment Return on investment means the return the…
Q: Which of the following is NOT one of the common exit barriers? Select one: O a. A high return unit…
A: The question is related multiple choice question and is related to reason not common for exit…
Q: A risk-neutral worker can choose to exert either low or high effort. The manager cannot observe the…
A: The following information has been provided in the question: Realized revenue of the firm= $200 or…
Q: The president of Bright Corporation tells you that he sees a dim future for his company. He feels…
A: If fixed costs are high, a company find it difficult to manage short term revenue fluctuation,…
Q: Which of the following is an example for "Neglect" strategy under EVLN Model of Job Satisfaction?…
A: Ans. d - Paying less attention to quality, and increasing absenteeism and lateness.
Q: Which of the following statements is not correct about ESG? a.A mature ESG presence helps companies…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is not true regarding continuous improvement?A. It applies to both service…
A: Continuous Improvement means business or process should be improving on regular or continuous basis.…
Q: Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't…
A: Revenue means the amount earned by selling the goods or services. Profit means the difference…
Q: 1) Which of the following is a reason that has accelerated the demand for refinements to the costing…
A: Due to the Diversity of Products and completions are some of the factors for refinements to the…
Q: What are the ethical issues that Dunlap's management team mat have created by adopting a short run…
A: Albert John Dunlap was an American Corporate executive who was famous many theories which are useful…
Q: Which of these efforts or actions (i.e., changing values) requires managing quality, i.e., decrease…
A: Product production comprises all operations associated to the creation of a deliverable product,…
Q: Criticisms of return on investment as the only performancemeasure include:a. ROI focuses on…
A: Return on investment is a measure used compare the benefit received by the investors when compared…
Q: Companies enjoy many benefits of using JIT. Which is not a benefit of adopting JIT? Ability to…
A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…
Q: 2. Ann is Bob's supervisor. While completing his performance appraisal, Ann tells Bob that he is…
A: Effective communication is important for organization in order to achieve the goal. organization to…
Q: Explain with an example why managers find it difficult to adopt a decision alternative even when the…
A: Below is the answer-
Q: Which of the following statements about the balanced scorecard approach is false? It requires…
A: A balanced scorecard approach is one of the approaches used as a management technique for assessing…
Q: Some argue against corporate involvement in socially responsible behavior because the costs incurred…
A:
Q: Which of the following statements are false? SELECT ALL THAT APPLY a. One of the dangers of…
A: Relevant cost seems to be a word used in managerial accounting to indicate avoidable expenditures…
Q: Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has…
A: 1. Calculate the manufacturing cycle efficiency. Manufacturing cycle efficency = Processing time /…
Q: dentify each of the following risks as most likely to be systematic risk or diversifiable risk: The…
A: Systematic risk is the risk which is caused by macroeconomic factors also known as market risk.…
Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: Which of the following statements are true? Multiple select question. Measuring and reporting…
A: There are 4 types of quality costs: 1) Prevention cost: Costs incurred to prevent defects in…
Q: What does a consistently negative responsibility marginimply will happen to the operating income of…
A: The revenue less occurred variable costs(VC) and also the traceable fixed costs(FC) could result in…
Q: Companies enjoy many benefits from using JIT. Which is not a benefit of adopting JIT? a. Ability to…
A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…
Q: 14 - Which of the following statements is incorrect? a) Performance appraisal is merely a tool…
A: Performance appraisal meaning - A performance appraisal is a process by which an individual…
Many companies have viewed JIT as a panacea—a knight in shining armor which promises rescue from sluggish profits, poor quality, and productive inefficiency. It is often lauded for its beneficial effects on employee morale and self-esteem. Yet, JIT may also cause a company to struggle and may produce a good deal of frustration. In some cases, JIT appears to deliver less than its reputation seems to call for.
Required:
Discuss some of the limitations and problems that companies may encounter when implementing a JIT system.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following is not true regarding continuous improvement? It applies to both service and manufacturing companies. It is used to reduce performance costs. It rejects the idea of good enough. It can be applied only to improve processes and products but not services and practices.Identify the major problems in this situation and explain how they impact the organization. You will need to consider both behavioral and analytical factors. Specifically, how might managerial accounting concepts, tools, or techniques be applied to help resolve this dilemma? What are possible consequences of applying the same to this dilemma? Briefly explain Orange Electronics has been experiencing declining profit margins and has been looking for ways to increase operating income. It cannot raise selling prices for fear of losing business to its competitors. It must either cut costs or improve productivity. The company uses a standard cost system to evaluate the performance of the soldering department. It investigates all unfavorable variances at the end of the month. The soldering department rarely completes the operations in less time than the standard allows (which would result in a favorable variance). In most months, the variance is zero or slightly unfavorable. Reasoning that…Suppose that Adriana’s decision was prompted mostly by the desire to receivethe computer quickly. Informed that it was losing sales because of the longertime to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units andthe time required to produce its product. Consequently, delivery time and costsboth decreased, and the company was able to lower its prices on Drantex.Explain how these actions translate into strengthening the competitive positionof the Drantex PC relative to the Confiar PC. Also discuss the implications forthe management accounting information system.
- There is often more than one way to improve a performance measure. Unfortunately, some of the actionstaken by managers to make their performance look better may actually harm the organization. For example, suppose the marketing department is held responsible only for increasing the performance measure“total revenues.” Increases in total revenues may be achieved by working harder and smarter, but theycan also usually be achieved by simply cutting prices. The increase in volume from cutting prices almostalways results in greater total revenues; however, it does not always lead to greater total profits. Thosewho design performance measurement systems need to keep in mind that managers who are under pressure to perform may take actions to improve performance measures that have negative consequenceselsewhere.Required:For each of the following situations, describe actions that managers might take to show improvement inthe performance measure but which do not actually lead to improvement in…Profit Corp. has a subunit classified as a cost center that supports other parts of the firm but has reported costs higher than what the corporate office would like to see. Thus, the manager of this subunit is under pressure to cut operating costs without hurting the perceived quality of services provided. What general recommendations could you give to the manager of this cost center to achieve that goal?In a strategy meeting, the computer manufacturing company's president said, "If we raised the price of our product, the company's break-even point will be lower." The financial vice president responded by saying, "The company will also be less likely to incur a loss." As a management accountant would you agree or disagree with these statements and why?
- Explain with an example why managers find it difficult to adopt a decision alternative even when the relevance cost analysis shows the superiority of this decision alternative to maximize operating income over other decision alternatives. What might the company do to reduce the pressure on management and decrease the ethical conflict?Consultant Frank Alvarez recently commented that the mostcommon error made by his clients is ignoring opportunitycosts associated with business decisions. The costs Alvarezwas referring to are:a. Benefits foregone by selecting one course of actionover another.b. The out-of-pocket costs of implementing a particularbusiness decision.c. Costs that make future opportunities possible.d. Costs that have made past opportunities possible.In a strategy meeting, a manufacturing company’s president said, “If we raise the price of our product, the company’s break-even point will be lower.” Thefinancial vice president responded by saying, “Then we should raise our price. The company will be less likely to incur a loss.” Do you agree with the president? Why? Do you agree with the financial vice president? Why?
- Wolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor for this company is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete customer orders. From time order is placed to time order received by manufacturing 18.0 days From time order is received by manufacturing to time production begins 9.0 days Inspection time 3.5 days Process (manufacturing) time 7.0 days Move time 4.5 days What is the production (manufacturing) lead time for this order? Multiple Choice 34 days. 16…Consider the following conversation between Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified public accountant: Gary: Donna, we have a real problem. Our operating cash is too low, and we are in desperate need of a loan. As you know, our financial position is marginal, and we need to show as much income as possibleand our assets need bolstering as well. Donna: I understand the problem, but I dont see what can be done at this point. This is the last week of the fiscal year, and it looks like well report income just slightly above breakeven. Gary: I know all this. What we need is some creative accounting. I have an idea that might help us, and I wanted to see if you would go along with it. We have 200 partially finished machines in process, about 20% complete. That compares with the 1,000 units that we completed and sold during the year. When you computed the per-unit cost, you used 1,040 equivalent units, giving us a manufacturing cost of 1,500 per unit. That per-unit cost gives us cost of goods sold equal to 1.5 million and ending work in process worth 60,000. The presence of the work in process gives us a chance to improve our financial position. If we report the units in work in process as 80% complete, this will increase our equivalent units to 1,160. This, in turn, will decrease our unit cost to about 1,345 and cost of goods sold to 1.345 million. The value of our work in process will increase to 215,200. With those financial stats, the loan would be a cinch. Donna: Gary, I dont know. What youre suggesting is risky. It wouldnt take much auditing skill to catch this one. Gary: You dont have to worry about that. The auditors wont be here for at least 6 to 8 more weeks. By that time, we can have those partially completed units completed and sold. I can bury the labor cost by having some of our more loyal workers work overtime for some bonuses. The overtime will never be reported. And, as you know, bonuses come out of the corporate budget and are assigned to overheadnext years overhead. Donna, this will work. If we look good and get the loan to boot, corporate headquarters will treat us well. If we dont do this, we could lose our jobs. Required: 1. Should Donna agree to Garys proposal? Why or why not? To assist in deciding, review the corporate code of ethics standards described in Chapter 1. Do any apply? 2. Assume that Donna refuses to cooperate and that Gary accepts this decision and drops the matter. Does Donna have any obligation to report the divisional managers behavior to a superior? Explain. 3. Assume that Donna refuses to cooperate; however, Gary insists that the changes be made. Now what should she do? What would you do? 4. Suppose that Donna is 63 and that the prospects for employment elsewhere are bleak. Assume again that Gary insists that the changes be made. Donna also knows that his supervisor, the owner of the company, is his father-in-law. Under these circumstances, would your recommendations for Donna differ?In a balanced scorecard, a key strategic if-then statement is provided: if the number of defective units decreases, then market share will increase. Assume that the targeted reduction level of defective units was achieved but that the targeted market share increase was not achieved. Which statement best describes this outcome? a. The company has not successfully implemented its strategic plan. b. Single-loop feedback is needed. c. The hypothesized relationship is somehow invalid. d. Corrective action must be taken so that the strategy can be executed as intended.