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Chapter Test - Production Cycle

The document contains a chapter test on the production cycle with multiple choice and matching questions. It tests knowledge of key production cycle concepts like the bill of materials, master production schedule, job-order costing, and lean manufacturing. It also contains questions about internal controls related to preventing issues in the production cycle like loss of inventory, production errors, and theft.

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Faith Reyna Tan
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
178 views

Chapter Test - Production Cycle

The document contains a chapter test on the production cycle with multiple choice and matching questions. It tests knowledge of key production cycle concepts like the bill of materials, master production schedule, job-order costing, and lean manufacturing. It also contains questions about internal controls related to preventing issues in the production cycle like loss of inventory, production errors, and theft.

Uploaded by

Faith Reyna Tan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER TESTS

Name: _________________________ Date: _________________


The Production Cycle
Part I-Multiple Choice. Read each question and answer choice carefully and choose the ONE
best answer.
1. The production cycle information system integrates both operational and financial data
from many sources.
a. True b. False

2. Which of the following is an advantage of bar-coding over RFID?


a. Speed
b. Accuracy
c. Cost
d. Safety

3. What is not a known threat of the production cycle activities?


a. The loss or alteration of production data
b. The unauthorized disclosure of production information
c. The risk of inaccurate or invalid master data
d. The risk of inappropriate allocation of overhead costs

4. Which document captures information about labor used in production?


a. Move ticket
b. Job-time ticket
c. Operations list
d. Bill of materials

5. The production cycle is a recurring set of business activities and related information
processing operations associated with the manufacture of products. What is its second
step?
a. Product design
b. Product operations
c. Cost accounting
d. Planning and scheduling

6. Lean manufacturing is also referred to as


a. Pull manufacturing
b. Push manufacturing

7. Which system is most likely to be used by a company that mass-produces large batches
of standard items in anticipation of customer demand?
a. MRP-II
b. Lean manufacturing
c. Activity-based costing
d. Throughput

8. The development of an MPS would be most effective in preventing which of the following
threats?
a. Recording and posting errors
b. Loss of inventory
c. Production of poor-quality goods
d. Excess production
9. Which control procedure is probably least effective in reducing the threat of inventory loss?
a. Limiting physical access to inventory
b. Documenting all transfers of inventory within the company
c. Regular materials usage reports that highlight variances from standards
d. Periodically counting inventory and investigating any discrepancies between those
counts and recorded amounts

10. What is the number of good units produced in a given period of time called?
a. Productive capacity
b. Productive processi9ng time
c. Yield
d. Throughput

Part II- Matching Type. Match the following terms with their definitions.
A. Definition of terms

Terms Definitions
1. Bill of materials a. A factor that cause costs to change
2. Operations list b. A measure of the number of good units produced
in a period of time
3. Master production c. A list of the raw materials used to create a finished
schedule product
4. Lean manufacturing d. A document used to authorize removal of raw
materials from inventory
5. Production order e. A cost accounting method that assigns costs to
products based on specific processes performed
6. Materials requisition f. A cost accounting method that assigns costs to
specific batches or production runs and is used
when the product or service consists of uniquely
identifiable items
7. Move ticket g. A cost accounting method that assigns costs to
each step or work center and then calculates the
average cost for all products that passed through
that step ort work center
8. Job-time ticket h. A document that records labor costs associated
with manufacturing a product
9. Job-order costing i. A document that tracks transfer of inventory from
one work center to another
10. Cost driver j. A document that authorizes manufacture of a
finished good
11. Throughput k. A document that lists the steps required to
manufacture a finished good
12. Computer-integrated l. A document that specifies how much of a finished
manufacturing good is to be produced during a specific time
period
m. A production planning technique that is an
extension of the just-in-time inventory control
method
n. A production planning technique that is an
extension of the materials requirement planning
inventory control method
o. A term used to refer to the use of robots and other
IT techniques as part of the production process
Part III- Identification. Which internal control procedure would be most cost-effective in dealing
with the following expenditure cycle threats?
a. A production order was initiated for a product that was already overstocked in the
company’s warehouse.

b. A production employee stole items of work-in-process inventory.

c. The “rush-order” tag on a partially completed production job became detached from
the materials and lost, resulting in a costly delay.

d. A production employee entered a materials requisition form into the system in order to
steal Php 3,000 worth of parts from the raw materials storeroom.

e. A production worker entering job-time data on an online terminal mistakenly entered


3,000 instead of 300 in the “quantity-completed” field.

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