Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter C, Problem 1E
Identify each of the following production processes as lean (L) or traditional (T).
1. The process produces standard goods, with no option for customization. Production begins with
the quarterly sales
2. The process uses push production. Large batch sizes are used, and inspection occurs only when
goods are completed.
3. The process uses value streams to meet the demand for customized products. The value streams
depend on quality materials, and employees are empowered to “stop the line” if defects are detected.
4. The production process begins when a customer makes an order. Raw materials are delivered
just-in-time for the process to begin. Little inventory and raw materials are held.
EXERCISES
Exercise C-1
Lean business model
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Students have asked these similar questions
A specialty instrument manufacturer is in the process of establishing a cost system. The company produces machines that are unique and distinctive. These machines are produced when purchase requests are received from customers. Although some common parts and sub-assemblies are to be held in inventory, no finished goods inventory is maintained since each purchase request is for a customized specialty instrument. The type of cost accumulation system that would be best suited for this type of environment would be A. Just-in-time costing. B. Batch-level costing. □C. Job-order costing. □D. Process costing.
Identifying just-in-time characteristics
Consider the following characteristics of either a JIT production system or a traditional production system. Indicate whether each is characteristic of a JIT production system or a traditional production system.
Products are produced in large batches.
Large stocks of finished goods protect against lost sales if customer demand is higher than expected.
Suppliers make frequent deliveries of small quantities of raw materials.
Employees do a variety of jobs, including maintenance and setups as well as operating machines.
Machines are grouped into self-contained production cells or production lines.
Machines are grouped according to function. For example, all cutting machines are located in one area.
The final operation in the production sequence “pulls” parts from the preceding operation.
Each employee is responsible for inspecting his or her own work.
The management works with suppliers to ensure defect-free raw materials.
If Power Products uses process costing, which of the follow-ing are likely to be true:
a. The production processes are high volume.b. The products use different amounts of direct labor.c. The products are created with repetitive processes.d. The products are created to customer specifications.
Chapter C Solutions
Managerial Accounting
Ch. C - Prob. 1DQCh. C - How does push production differ from pull...Ch. C - Prob. 3DQCh. C - Prob. 4DQCh. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Can management of a company like Samsung use cycle...Ch. C - Identify each of the following as applying more to...Ch. C - Identify each of the following as applying more to...Ch. C - Prob. 3QSCh. C - Use lean accounting to prepare journal entries for...Ch. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - A company reports ending accounts payable of...Ch. C - Prob. 13QSCh. C - Identify each of the following production...Ch. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - A manufacturer makes T-shirts in several...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Use the information below for Tesla to answer the...Ch. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Robo-Lawn is a lean manufacturer of robotic lawn...Ch. C - Prob. 2PCh. C - Prob. 3P
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