HORNGREN COST ACCT NON-MAJORS W/ACCESS
17th Edition
ISBN: 9781323703748
Author: Datar
Publisher: Pearson Custom Publishing
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Chapter 20, Problem 20.20MCQ
Just-in-time inventory assumes all of the following, except:
- 1. Zero defects.
- 2. Resources will only be introduced as they are needed.
- 3. Just-in-time inventory presumes first-in, first-out costing.
- 4. Production of components only occurs only when requested further downstream in the manufacturing cycle.
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Just-in-time inventory assumes all of the following, except:
1. Zero defects.
2. Resources will only be introduced as they are needed.
3. Just-in-time inventory presumes first-in, first-out costing.
4. Production of components only occurs only when requested further downstream in the manufacturing cycle.
Just-in-time inventory assumes all of the following, except:1. Zero defects.2. Resources will only be introduced as they are needed.3. Just-in-time inventory presumes rst-in, rst-out costing.4. Production of components only occurs only when requested further downstream in the manufacturing cycle.
3. it is a product costing system generally used in just-in-time inventory environment. This costing system delays the costing process until the production of goods is completed by eliminating the detailed tracking of cost throughout the production system and preparing journal entries only at trigger points.
a.Backflush costing
B.Standard costing
C.Normal costing
D.Traditional costing
E.None of the above
Chapter 20 Solutions
HORNGREN COST ACCT NON-MAJORS W/ACCESS
Ch. 20 - Why do better decisions regarding the purchasing...Ch. 20 - Name six cost categories that are important in...Ch. 20 - What assumptions are made when using the simplest...Ch. 20 - Give examples of costs included in annual carrying...Ch. 20 - Give three examples of opportunity costs that...Ch. 20 - What are the steps in computing the cost of a...Ch. 20 - Why might goal-congruence issues arise when...Ch. 20 - JIT purchasing has many benefits but also some...Ch. 20 - What are three factors causing reductions in the...Ch. 20 - You should always choose the supplier who offers...
Ch. 20 - Prob. 20.11QCh. 20 - What are the main features of JIT production, and...Ch. 20 - Distinguish inventory-costing systems using...Ch. 20 - Describe three different versions of backflush...Ch. 20 - Discuss the differences between lean accounting...Ch. 20 - The order size associated with the...Ch. 20 - Prob. 20.17MCQCh. 20 - Prob. 20.18MCQCh. 20 - Lyle Co. has only one product line. For that line,...Ch. 20 - Just-in-time inventory assumes all of the...Ch. 20 - Economic order quantity for retailer. Wonder Line...Ch. 20 - Economic order quantity, effect of parameter...Ch. 20 - EOQ for a retailer. The Fabric World sells fabrics...Ch. 20 - EOQ for manufacturer. Sk8 Company produces...Ch. 20 - Sensitivity of EOQ to changes in relevant ordering...Ch. 20 - JIT production, relevant benefits, relevant costs....Ch. 20 - Backflush costing and JIT production. Grand...Ch. 20 - Backflush costing, two trigger points, materials...Ch. 20 - Backflush costing, two trigger points, completion...Ch. 20 - Prob. 20.30PCh. 20 - Prob. 20.31PCh. 20 - Prob. 20.32PCh. 20 - Prob. 20.33PCh. 20 - JIT purchasing, relevant benefits, relevant costs....Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Backflush costing and JIT production. The Acton...Ch. 20 - Backflush, two trigger points, materials purchase...Ch. 20 - Backflush, two trigger points, completion of...Ch. 20 - Lean accounting. Reliable Security Devices (RSD)...Ch. 20 - JIT production, relevant benefits, relevant costs,...
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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
- A JIT inventory management system maintains which of the following? a. Goods should be pushed through the system on a fixed schedule based on anticipated demand. b. Goods should be pulled through the system by present demand. c. Total inventory costs are minimized by balancing setup and carrying costs. d. Inventories are needed to avoid stock-out costs.arrow_forwardWhich of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory Finished Goods Inventory, and Cost of Goods Sold? Oa Cost of Goods Sold will be lower if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. balance in the Work- in-Process account after allocation will be the same under either method. None of given answer is correct. d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be lower if the underapplied overhead is closed out by allocating it to all appropriate accounts.arrow_forwardWhen inventory increases, the fixed manufacturing overhead is deferred in inventory under:" Absorption costing Variable costing Internal costing external costingarrow_forward
- The FIFO method provides a major advantage over the weighted-average method in that: a. the calculation of equivalent units is less complex under the FIFO method. b. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. c. the FIFO method provides measurements of work done during the current period. d. the weighted-average method ignores units in the beginning and ending work in process inventories.arrow_forwardI.-When assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weighted-average method. II.-The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no ending work in process inventory A. Only statement I is true B. Both statements are false C. Both statements are true D. Only statement II is truearrow_forwardWhich of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work- in-Process Inventory Finished Goods Inventoryand Cost of Goods Sold? a Cost of Goods Sold will be lower if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. The balance in the Work-in Process account after allocation will be the same under either method None of given answer is correct. d Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be lower if the underapplied overhead is closed out by allocating it to all appropriate accounts.arrow_forward
- The fundamental EOQ model a. provides for fluctuating lead times during reorder cycles. b. is relatively insensitive to errors in demand, procurement costs, and carrying costs. c. focuses on the trade-off between production costs and carrying costs. d. is stochastic in nature. e. is best used in conjunction with a periodic inventory system.arrow_forwardGood morning, See attached and I am struggling to find add: desired units of ending raw material inventory. I don't know what they mean by assumed? Thanks,arrow_forwardThe weighted-average method of process costing: a. can be used under any cost flow assumption. b. does not require the use of predetermined overhead rates. c. keeps costs in the beginning inventory separate from current period costs. d. does not consider the degree of completion of units in the beginning work in process inventory when computing equivalent units of production.arrow_forward
- 1. What is the major advantage of using a perpetual inventory system? a. It provides efficient internal control over materials. b. It avoids inventory shortages and overages. c. It avoids losses due to theft. d. It minimizes error in posting receipts and issues of materials. 2. If the 300 defective bolts(normal spoilage) were repaired and management wanted to be sure the incremental costs did not exceed the cost of producing new units, how would the rework costs be accounted for: a. Charged to overhead and spread over the costs of all products. b. Expensed as extraordinary. c. Charged to those belts repaired. d. As normal materials, labor and overhead.arrow_forwardWhich one of the following inventory management approaches determines the finished goods inventory level and then works backward until the raw material needs are determined? A. Just-in-time B. Extended EOQ C. Materials requirements planning D. Economic order quantityarrow_forwardmcqs Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? a The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. b Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. c Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. d The balance in the Work-in-Process account after allocation will be the same under either method.arrow_forward
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