Answered: Production managers are not concerned…

Production managers are not concerned about the capacity because capacity creation does not require any investment. Select one: False. True.

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter15: Integrated Production Processes (ipps)

Section: Chapter Questions

Problem 6P

See similar textbooks

Related questions

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Management is considering a one-time-only special order. There is sufficient idle capacity to fill…

A: Introduction:- Management (or management) is the administration of a company, whether for-profit,…

Q: What makes the cost-benefit analysis more difficult for information systems than most other…

A: Cost Benefit Analysis: Cost benefit analysis is conducted to determine whether the proposed system…

Q: Some managers believe machine performance is more important in a JIT environment than in a non-JIT…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: Managers often assume a strictly linear relationship between cost and the level of activity.Under…

A: There are 3 main types of cost: a. Variable cost b. Fixed cost b. Mixed Costs Variable costs are…

Q: 2. Which of the following statements is false? (You may select more than one answer.)a. The planning…

A: False Statements: a. Discretionary Fixed Cost is the cost which can be increase/decrease upto a…

Q: 1)What is cost behavior analysis? and Why is cost behavior analysis important to management?…

A: A break-even point is a point or number of units at which all the revenues generated by the company…

Q: Managers often assume a strictly linear relationship between cost and the level of activity.How can…

A: The managers often assume the strictly linear relationship between the cost and the level of…

Q: Which of the following is not a criticism of using ROI as the only performance measure?

A: ROI stands for Return on investment that shows the return earned by the company on the capital…

Q: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: part of a process happen without negatively impacting another part? What are some reasons for erring…

A: Lean methodology eliminates waste to the core in a process and ensures that reduction in delays…

Q: Why can full cost accounting lead to wrong management decisions?

A: Full cost accounting says that total costs of the product either it is fixed costs or it is variable…

Q: Most organizations use residual income instead of return on investment (ROI) as a performance…

A: The Following statement is True because Residual Income is much better than Return on Investment…

Q: “Managers will always choose the alternative that maximizes operating income or minimizes costs in…

A: Operating income: Income that is derived from business revenues after deducting operating expenses…

Q: It is ridiculous to suggest that process costing may also be suited to service firms, as services…

A: Process Costing: It is a method of cost accounting where manufacturing costs are collected and…

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: minimize overall risk

A: A manager has to make different decisions related to choosing a project. A project giving a higher…

Q: Managers often assume a strictly linear relationship between cost and volume. How can thispractice…

A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: The flow of goods through a production process cannot be at a faster rate than the slowest…

A: The Theory of Constraints is a method for determining the most significant limiting factor (i.e.,…

Q: Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result…

A: Companies can have two types of costs, fixed costs and variable costs, which together result in…

Q: Michael Porter argues a firm cannot be at the same time a cost leader and a differentiator. Do…

Q: In what way can the use of ROI as a performance measure for investment centers lead to bad…

A: ROI: It is a measure on the amount of return on a particular investment with respect to the…

Q: Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up…

A: A very common outsourcing scenario is the decision of a company to produce a component that is…

Q: Why should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: In what ways might using ROI as a performance indicator for investment centers lead to poor…

A: ROI: It measures the amount of return on a specific investment to the cost of the investment. The…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: if a manager constrained by limiting resource, he can be to produce those products which have the…

Q: plain how the cost per equivalent unit might be misleading to managers, particularly when a…

A: The term "equivalent units of production" refers to the work-in-process inventory at the end of the…

Q: In a management setting, does Transfer Pricing affects Absorption & Variable, Budgeting, and…

A: Transfer Pricing Transfer prices are required when profit centres are utilised to determine the…

Q: Which of the following is not a characteristic of a good performance measurement system? Group of…

A: There are many measures used by an organization to measure the performance of its employees. The…

Q: Which is not true in lean manufacturing? a) Process flexibility results in market responsiveness b)…

A: Lean manufacturing is a system that enhances customer value and always strives towards improvement…

Q: Wrong allocation of common costs lead to A. Inaccurate estimation of cost of products or…

A: Common costs are those costs that are incurred for two or more products simultaneously. Common costs…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: When constrained by some budget or limited sources managers often try to make products which lie in…

Q: Why do product costing systems using a single, volume-based cost driver tend to overcost highvolume…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Why do product-costing systems based on a single, volume-based cost driver tend to over-cost…

A: Single volume-based cost driver means the basis of allocation of costs to particular products using…

Q: Managers should pay little attention to bottleneck operations since they have limited capacity for…

A: In case of company manager play an important role in order to run the company and perform their…

Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…

A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…

Q: A company with an advanced manufacturing environment typically will have a higher break-even point,…

A: Advanced manufacturing environment: It can be defined as a situation where a strong competition…

Q: How can poor quality be expensive to the firm, especially if low-cost raw materials are used to…

A: The final objective of Cost Accounting is to reduce cost. Every firm wants to reduce cost thereby…

Q: Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a…

A: Sunk Costs: Sunk costs are those costs incurred in the past and it cannot be changed unless if any…

Q: Which of the following is not an advantage of participative budgeting?a. It encourages budgetary…

A: Participatory budgeting involves lower-level management personnel in the creation of the budget.…

Q: In what way can the use of ROI as a performance measure for investment centers lead to baddecisions?

A: Return On Investment (ROI): It is a measure on the amount of return on a particular investment with…

Question

Please please answer in 20 min thank you

Production managers are not concerned about the capacity because capacity creation does not require any
investment.
Select one:
O False.
O True.
Next page
ook Chapter
Jump to...
SAMSUNG

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce wait time.
Some managers believe machine performance is more important in a JIT environment than in a non-JIT environ-ment. Do you agree or disagree? Explain your answer.
Which is a disadvantage of an enterprise resource planning (ERP) system? Helps companies adjust to changes. Can replace separate software systems. Can reduce operating costs. Implementation requires a large commitment of time and people.
Companies enjoy many benefits from using JIT. Which is not a benefit of adopting JIT? a. Ability to respond quickly to changes in customer demand b. Lower inventory carrying costs c. Ability to continue production despite disruptions in deliveries of raw materials d. More space available for production
Which of the following are features of lean manufacturing? Yes or NO a. Maintaining excess inventory to ensure that products will always be available b. Cross-training of employees c. Giving employees additional authority and responsibility d. Product-oriented layout e. Increased setup time
Which of the following is NOT a principle of lean manufacturing? a. Products are pushed from the production end to the customer. b. All activities that do not add value and maximize the use of scarce resources must be eliminated. c. Achieve high inventory turnover rate. d. A lean manufacturing firm must have established and cooperative relationships with vendors. e. All of the above are lean manufacturing principles.
Which of the following is NOT a principle of lean manufacturing?a. Achieve high inventory turnover rate.b. All activities that do not add value and maximize the use ofscarce resources must be eliminated.c. Products are pushed from the production end to the customer.d. A lean manufacturing firm must have established andcooperative relationships with vendors.
Which of the following is a disadvantage of distributed data processing? a. End-user involvement in systems operation is decreased. b. Disruptions due to mainframe failures are increased. c. The potential for hardware and software incompatibility across the organization isincreased. d. The time between project request and completion is increased. e. All of the above are disadvantages.
In a Lean Culture How can a reduction in delays in one part of a process happen without negatively impacting another part?What are some reasons for erring on the side of having too much inventory rather than too little?
Which one of the following is a disadvantage of Mass Production system? a. Higher level of inventory at all levels and hence higher inventory cost. b. Larger space requirements. c. Breakdown of one machine will stop an entire production line. d. Higher cost due to frequent set up changes.
With the aid of computer software, managers can vary assumptions regardingselling prices, costs, and volume and can immediately see the effects of eachchange on the break-even point and profit. Such an analysis is called A. “What if” or sensitivity analysis.B. Vary the data analysis.C. Computer aided analysis.D. Data gathering.
Companies enjoy many benefits of using JIT. Which is not a benefit of adopting JIT? Ability to respond quickly to changes in customer demand Lower inventory carrying costs Ability to continue production despite disruptions in deliveries of raw materials More space available for production