Do you think that it is costly to convert from a traditional processing environment to a just-in-time processing environment? 1.Yes 2.No

Do companies such as Precor always choose to change to a just-in-time process for cost management to improve performance? 1.Yes 2.No

Is just-in-time cost management a universally accepted cost management method for companies such as Precor? 1.Yes 2.No

Do you think that a just-in-time production process always eliminates sources of waste? 1.Yes 2.No

Do you think that companies experience the same improved performance results of implementing just-in-time principles as did Precor? 1.Yes 2.No

Just-in-time manufacturing focuses on reducing time, cost, and poor quality within manufacturing and nonmanufacturing processes. 1.True 2.False

Just-in-time manufacturing views inventory as wasteful and unnecessary. 1.True 2.False

Supply chain management is a measure of the time that elapses between starting a unit of product into the beginning of a process and completing the unit of product. 1.True 2.False

Just-in-time manufacturing reduces or eliminates value-added lead time. 1.True 2.False

Just-in-time methods favor organizing work around products rather than processes. 1.True 2.False

Just-in-time principles can not be applied to service and administrative processes. 1.True 2.False

The accounting system is simpler in a just- in-time manufacturing environment because there are fewer transactions to record. 1.True 2.False

All of the following are operating principles of just-in-time manufacturing except 1.reduces inventory 2.reduces lead time 3.emphasizes zero defects 4.emphasizes push manufacturing

The time that a unit of product sits in inventories or moves unnecessarily is called 1.value-added lead time 2.non-value-added lead time 3.value-added ratio 4.setup time

Which of the following shows the correct relationship between setup times and lead times? 1.Long setup times→Large batch sizes→Large Inventory→Longer lead times 2.Long setup times→Small batch sizes→Small Inventory→Longer lead times 3.Long setup times→Large batch sizes→Small Inventory→Shorter lead times 4.Short setup times→Large batch sizes→Large Inventory→Shorter lead times

The just-in-time principle in which items are produced only as they are needed by the customer is called 1.push manufacturing 2.pull manufacturing 3.zero defects 4.product oriented layout

Which of the following is not a step in the Six-Sigma improvement system? 1.define 2.measure 3.analyze 4.terminate

The coordination and control of materials, services, information, and finances as they move in a process from the supplier, through the manufacturer, wholesaler, and retailer to the consumer is called 1.pull manufacturing 2.enterprise resource planning 3.supply chain management 4.activity analysis

The accounting system for just-in-time operations will have all of the following characteristics except 1.more complex accounting entries 2.combined accounts 3.nonfinancial performance measures 4.fewer transactions

An activity analysis can be used to determine all of the following except 1.costs of quality 2.the cost of value- added and non- value added activities 3.cost of processes 4.appropriate inventory levels

The costs of activities that detect, measure, evaluate, and inspect products and processes to ensure that they meet customer needs are called 1.prevention costs 2.appraisal costs 3.internal failure costs 4.external failure costs

The report that identifies the total activity cost associated with each quality cost classification and the percentage of total quality costs associated with each classification is called a(n) 1.nonfinancial measure report 2.Pareto chart 3.cost of quality report 4.activity analysis report