ACCOUNTING-One of the drawbacks of full product cost is that it is relevant

QUESTION

These are True/False Questions and I need the Solutions1. One of the drawbacks of full product cost is that it is relevant only for companies providing services. T/F2. Nonvalue-adding activity costs do not increase a product’s cost because they do not add value to the product. T/F3. The repair of machines is an example of a value-adding activity. T/F4. Activity-based management and lean operations can be used either together or separately to eliminate waste and manage activities. T/F5. Activity-based management focuses on identifying product costs as either variable or fixed. T/F6. Activity-based management is useful for both strategic planning and operational decision making. T/F7. Cost traceability is decreased in a just-in-time operating environment. T/F8. A just-in-time philosophy seeks to maximize inventories. T/F9. Traditional environments emphasize functional departments that tend to group similar activities together. T/F10. When managing inventory in a just-in-time environment, the need of controlling workers does not exists. T/F11. The just-in-time operating environment typically is characterized by a large number of non-value-adding activities. T/F12. The JIT operating philosophy requires a push-through production system. T/F13. In a traditional manufacturing environment, both push-through and pull-through methods trigger scheduling of production. T/F14. Storage time is the time a product spends waiting to be worked on once it arrives at the next operation. T/F15. In order for a manager to reduce throughput time, it is necessary for the accounting system to focus on calculating units produced per direct labor hour. T/F16. Shifting to a just-in-time approach in a manufacturing environment usually will not require a new approach in evaluating costs. T/F17. The JIT operating philosophy must be adopted by everyone in a company before its total benefits can be realized. T/F18. Many indirect costs in a traditional system become direct costs in a JIT system. T/F19. Backflush costing eliminates the need to make journal entries during the period to track cost flows through the production process as the product is made. T/F20. In a backflush environment, costs are tracked through the various production departments as products or services move through the production process. T/F21. Both the number of entries and the number of ledger accounts decrease when you change to a backflush costing system.T/F22. Backflush costing eliminates the use of a Work in process account. T/F23. Lean’s primary goal is to eliminate waste in business processes. T/F24. Lean uses ABC to assign overhead costs to the product by using appropriate cost drivers. T/F25. Activity-based costing applies only to production-related activities. T/F

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