These are True/False Questions and I need the Solutions
1. One of the drawbacks of full product cost is that it is relevant only for companies providing services. T/F
2. Nonvalue-adding activity costs do not increase a product’s cost because they do not add value to the product. T/F
3. The repair of machines is an example of a value-adding activity. T/F
4. Activity-based management and lean operations can be used either together or separately to eliminate waste and manage activities. T/F
5. Activity-based management focuses on identifying product costs as either variable or fixed. T/F
6. Activity-based management is useful for both strategic planning and operational decision making. T/F
7. Cost traceability is decreased in a just-in-time operating environment. T/F
8. A just-in-time philosophy seeks to maximize inventories. T/F
9. Traditional environments emphasize functional departments that tend to group similar activities together. T/F
10. When managing inventory in a just-in-time environment, the need of controlling workers does not exists. T/F
11. The just-in-time operating environment typically is characterized by a large number of non-value-adding activities. T/F
12. The JIT operating philosophy requires a push-through production system. T/F
13. In a traditional manufacturing environment, both push-through and pull-through methods trigger scheduling of production. T/F
14. Storage time is the time a product spends waiting to be worked on once it arrives at the next operation. T/F
15. 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/F
16. Shifting to a just-in-time approach in a manufacturing environment usually will not require a new approach in evaluating costs. T/F
17. The JIT operating philosophy must be adopted by everyone in a company before its total benefits can be realized. T/F
18. Many indirect costs in a traditional system become direct costs in a JIT system. T/F
19. 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/F
20. In a backflush environment, costs are tracked through the various production departments as products or services move through the production process. T/F
21. Both the number of entries and the number of ledger accounts decrease when you change to a backflush costing system.T/F
22. Backflush costing eliminates the use of a Work in process account. T/F
23. Lean’s primary goal is to eliminate waste in business processes. T/F
24. Lean uses ABC to assign overhead costs to the product by using appropriate cost drivers. T/F
25. Activity-based costing applies only to production-related activities. T/F
