REVEL for Horngren's Cost Accounting: A Managerial Emphasis -- Access Card (16th Edition) (What's New in Accounting)
16th Edition
ISBN: 9780134789705
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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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.
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
When inventory increases, the fixed manufacturing overhead is deferred in inventory under:"
Absorption costing
Variable costing
Internal costing
external costing
Chapter 20 Solutions
REVEL for Horngren's Cost Accounting: A Managerial Emphasis -- Access Card (16th Edition) (What's New in Accounting)
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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- I.-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_forward0. The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: 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_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
- The First- In- First- Out method, which is mainly utilized to assign the average cost of production to a given product, is most commonly employed when inventory items are so intertwined that it becomes difficult to assign a specific cost to an individual unit. Select one: O True O Falsearrow_forwardUnder absorption costing, fixed manufacturing overhead costs are:A. are deferred in inventory when production exceeds sales.B. are always treated as period costs.C. are released from inventory when production exceeds sales.D. none of the abovearrow_forwardThe average and FIFO process costing methods differ in that the average method: a. Can be used under any cost flow assumption. b. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. c. Is much more difficult to apply than the FIFO method. D. Considers the ending work in process inventory only partially complete.arrow_forward
- Which of the following best defines " stockout costs"? A) They are physical goods used in operations. B) They are costs associated with retrieving inventory items from a workshop C) They are costs associated with interruptions to assembly lines D) They are associated with inventory being unavailable when needed to meet demand. E) None of the above.arrow_forwardJust-in-time manufacturing is a system based on purchasing inventory and then producing finished products only when needed for an order. + TRUE FALSEarrow_forwardA basis for allocating overhead to inventory is also called a cost driver True Falsearrow_forward
- Which 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_forward1. I. The EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory.Il. In process costing the cost per unit in a department is found by spreading the period's production costs over the production activity.a. Both statements are false.b. Only statement I is true.c. Only statement Il is true.d. Both statements are true 2. I. Under the weighted average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period.Il. Discrete production losses are assumed to occur uniformly throughout the process. a. Both statements are true.b. Only statement Il is truec. Both statements are false.d. Only statement I is true.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 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
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