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SPOILAGE, REWORKED UNITS, AND SCRAP mcq

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MULTIPLE CHOICE;21. Managers often cite reductions in the costs of spoilage as a(n);a. major justification for implementing a just-in-time production system.;b. measurement of improved output quality.;c. immaterial item that is not to be tracked.;d. indication of improvement in the accounting system.;22. Unacceptable units of production that are discarded or are sold for reduced prices are referred to as;a. reworked units.;b. spoilage.;c. scrap.;d. defective units.;23. Unacceptable units of production that are subsequently repaired and sold as acceptable finished goods are;a. reworked units.;b. spoilage.;c. scrap.;d. defective units.;24. Costs of poor quality production include;a. the opportunity cost of the plant and workers.;b. the effect on current customers.;c. the effect on potential customers.;d. all of the above are costs of poor quality production.;25. Material left over when making a product is referred to as;a. reworked units.;b. spoilage.;c. scrap.;d. defective units.;26. A production process which involves spoilage and rework occurs in;a. the manufacture of high precision tools.;b. semiconductor units.;c. the manufacture of clothing.;d. all of the above involve spoilage and rework.;27. Spoilage that is an inherent result of the particular production process and arises under efficient operating conditions is referred to as;a. ordinary spoilage.;b. normal spoilage.;c. abnormal spoilage.;d. there is no special term for this type of spoilage.;28. Spoilage that should not arise under efficient operating conditions is referred to as;a. ordinary spoilage.;b. normal spoilage.;c. abnormal spoilage.;d. there is no special term for this type of spoilage.;29. Costs of normal spoilage are usually accounted for as;a. part of the cost of goods sold.;b. part of the cost of goods manufactured.;c. a separate line item in the income statement.;d. an asset in the balance sheet.;30. Costs of abnormal spoilage are usually accounted for as;a. part of the cost of goods sold.;b. part of the cost of goods manufactured.;c. a separate line item in the income statement.;d. an asset in the balance sheet.;31. The loss from abnormal spoilage account would not appear;a. on the balance sheet.;b. as a detailed item in the retained earnings schedule of the balance sheet.;c. as a detailed item on the income statement.;d. on either (a) or (b).;32. Normal spoilage should be computed using as the base;a. total units completed.;b. total good units completed.;c. total actual units started into production.;d. none of the above.;33. Companies that attempt to achieve zero defects in the manufacturing process treat spoilage as;a. scrap.;b. reworked units.;c. abnormal spoilage.;d. normal spoilage.;34. Which one of the following conditions usually exists when comparing normal and abnormal spoilage to controllability?;Normal Spoilage Abnormal Spoilage;a. Controllable Controllable;b. Controllable Uncontrollable;c. Uncontrollable Uncontrollable;d. Uncontrollable Controllable;35. Not counting spoiled units in the equivalent-unit calculation results in;a. lower cost per good unit.;b. higher cost per good unit.;c. better management information.;d. both (a) and (c).;36. Recognition of spoiled units when computing output units;a. highlights the costs of normal spoilage to management.;b. distorts the accounting data.;c. focuses management's attention on reducing spoilage.;d. results in both (a) and (c).

 

Paper#23987 | Written in 18-Jul-2015

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