Management And Accounting Web

Just-In-Time MC Questions

Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida

JIT Main Page | JIT Discussion Questions | Graduate Management Accounting Course

1. In a JIT production system, a production operation is authorized

a. when an authorization is obtained from a downstream operation.
b. when the production worker is at the work station.
c. when an authorization is obtained from an upstream operation.
d. when the team leader is ready.
e. when the inventory level at the work station reaches zero.

2. Which of the following is least likely to be part of a changeover from a traditional manufacturing system to a cellular manufacturing system?

a. Dedicating the production line to one or a few similar products.
b. Decentralization of support services and operating equipment.
c. Retraining production workers to perform multiple tasks.
d. Increasing the number of cost allocations.
e. Placing greater emphasis on cooperation and teamwork.

3. A JIT production system would not include an emphasis on

a. the quantity of individual output.
b. producing products as needed by the next stage.
c. decentralization of support services.
d. a and b.
e. a and c.

4. Which of the following concepts or practices is (are) incompatible with JIT?

a. local (e.g., department) optimization.
b. the economic order quantity model.
c. inspect once at the end of the process
d. a and b.
e. all of the above.

5. Which of the following statements is true? Both ABC and JIT

a. place emphasis on simplification.
b. provide more accurate product costs than traditional systems.
c. emphasize quality improvements.
d. all of the above.
e. none of the above.

6. Which of the following is not considered to be a tool useful in supporting continuous improvement by advocates of JIT?

a. Pareto diagrams.
b. Statistical control charts.
c. Plan-do-check-action cycles.
d. Fishbone diagrams.
e. Accounting variance analysis.

7. The value chain concept refers to the linked set of value adding activities performed

a. within an organization.
b. within an organization, plus the capital added by stockholders.
c. from suppliers through an organization's production activities.
d. from suppliers through an organization's distribution activities.
e. from suppliers through an organization's customer service activities.

8. Which of the following represent characteristics of a JIT accounting system?

a. Batching vendor deliveries before recording in the accounting records.
b. Increasing the traceability of costs with fewer cost pools.
c. Using backflush cost systems.
d. a and c.
e. all of the above.

9. Which of the following concepts or techniques is (are) inconsistent with the JIT philosophy?

a. Using statistical control charts at the process level.
b. Using a team approach.
c. Using overhead variance analysis at the process level.
d. a and b.
e. a and c.

10. Which of the actions stated below is not consistent with JIT purchasing?

a. Reduced inspection of incoming materials.
b. More frequent deliveries from vendors.
c. Long term agreements with vendors.
d. Vendor certification and education on quality requirements.
e. Increased number of vendors to obtain competitive prices.

11. Departmental overhead rates are likely to be

a. more accurate in a just-in-time production system than in a traditional production system.
b. more accurate in a traditional production system than in a JIT system.
c. equally accurate or inaccurate in both systems.
d. used in a traditional system but not in a JIT system.
e. None of the above.

12. A JIT production system would probably include an emphasis on

a. maximizing the quantity of output at each operation.
b. decentralizing support services.
c. production authorizations that pull products through the factory.
d. a and b.
e. b and c.

13. Which of the following represent manual systems designed to support continuous flow manufacturing?

a. JIT’s kanban system.
b. TOC’s OPT system.
c. An ABC system.
d. a and b.
e. b and c.

14. Which of the following concepts or philosophies place more emphasis on financial measurements than on non financial measurements of performance?

a. TOC
b. ABC
c. JIT
d. a and b
e. a and c.

15. Which of the following concepts or philosophies explicitly recognize the concept of variability?

a. TOC
b. ABC
c. JIT
d. a and b
e. a and c.

16. When production volume increases in a cellular manufacturing system where costs are assigned using cycle time,

a. product unit cost decreases
b. idle capacity cost decreases.
c. a and b.
d. None of these.

17. Which of the following concepts or philosophies do not place emphasis on demand pull production systems?

a. TOC
b. ABC
c. JIT
d. a and b
e. a and c.

18. Which of the following include a mechanism to enforce the pace of production line operations?

a. TOC
b. ABC
c. JIT
d. a and b
e. a and c.

19. Which of the terms below is the closest in meaning to the term Kaizen?

a. Jidohka.
b. PDCA.
c. kanban
d. pokayoke
e. constraint

20. The kanban concept performs the same function as the

a. rope concept.
b. funnel concept.
c. drum concept.
d. bowl concept.
e. buffer concept.

21. If the cells in a JIT system are considered departments, then departmental overhead rates are likely to be

a. more accurate in a just-in-time production system than in a traditional production system.
b. more accurate in a traditional production system than in a JIT system.
c. equally accurate or inaccurate in both systems.
d. used in a traditional system but not in a JIT system.
e. None of the above.

22. The language of JIT includes many terms. Which two of the following terms refer to finding and correcting defects as they occur?

a. kaizen and jidoka.
b. autonomation and kanban.
c. kaizen and kanban.
d. kanban and jidoka.
e. jidoka and autonomation.

23. The value added concept includes the value added

a. by the company’s vendors.
b. by the company’s production activities.
c. by the company’s distribution activities.
d. by the company’s vendors, production activities & distribution activities.
e. by the company’s vendors, production, distribution and customer service activities.

24. The value chain concept includes the value added

a. by the company’s vendors.
b. by the company’s production activities.
c. by the company’s distribution activities.
d. by the company’s vendors, production activities & distribution activities.
e. by the company’s vendors, production, distribution and customer service activities.

25. Which of the charts or diagrams below is the most applicable to the 80/20 rule?

a. pareto diagram.
b. x-bar chart.
c. range chart.
d. fishbone diagram.
e. histogram.

26. Which of the following concepts or techniques is (or are) consistent with a JIT production system?

a. Using production authorizations from upstream operations.
b. Empowering production line workers to stop production to fix problems.
c. Using specialized workers to perform a single task.
d. a and b.
e. all of the above.

27. Which of the following concepts or techniques is not (are not) consistent with a JIT production system?

a. Using a computerized production scheduling and control system.
b. Using statistical process control at the operator level.
c. Using cross trained workers to perform multiple tasks.
d. a and b.
e. b and c.

28. Overhead allocations are likely to be

a. more accurate in a traditional production system than in a cellular production system.
b. more accurate in a cellular production system than in a traditional production system.
c. equally accurate or inaccurate in both systems.
d. used in a traditional system but not in a cellular system.
e. None of the above.

29. Which of the following statements is false? Both ABC and JIT

a. place emphasis on simplification.
b. provide more accurate product costs than traditional systems.
c. emphasize quality improvements.
d. a and c.
e. all of the above.

30. Which of the following represent pull systems as opposed to push systems?

a. JIT kanban systems.
b. TOC OPT systems.
c. ABC systems.
d. a and b.
e. b and c.

31. The term kaizen is more closely related to which of the following terms?

a. jidoka.
b. autonomation.
c. plan-do-check-action.
d. throughput.
e. value chain.

32. Which of the charts or diagrams below shows relationships to reveal problem causes?

a. pareto diagram.
b. x-bar chart.
c. range chart.
d. fishbone diagram.
e. histogram.

33. Which of the following terms is more closely related to identifying and correcting problems as they occur?

a. kaizen.
b. kanban.
c. statistical process control.
d. plan-do-check-action.
e. jidoka.

34. Which of the terms below is more closely related to traditional manufacturing concepts, as opposed to the lean enterprise concepts?

a. value added.
b. continuous improvement.
c. value chain.
d. quality at the source.
e. backflush system.

35. Which of the following terms is more closely related to the lean enterprise manufacturing concepts, as opposed to the traditional concepts?

a. value added concept.
b. produce to build inventory.
c. large work in process inventory buffers.
d. large number of competitive vendors.
e. demand pull system.

36. Just-in-time techniques are applicable to

a. Purchasing.
b. Production.
c. Distribution.
d. all of the above.
e. none of the above.

37. Applying the concepts of just-in-time tends to reduce

a. the cost of handling incoming materials.
b. the cost of materials storage.
c. the cost of materials movement inside the plant.
d. a. and b.
e. all of the above.

38. Which of the following is not a tool applicable to just-in-time.

a. Pareto diagrams.
b. Overhead variances.
c. Control charts.
d. Fishbone diagrams.
e. Histograms.

39. Rearranging a factory from a traditional plant layout to a cellular plant layout tends to

a. increase the need for inventory buffers.
b. increase the number of machine operators needed.
c. increase the proportion of direct product costs to total product costs.
d. All of the above.
e. None of the above.

40. Which of the statements below is or are consistent with a JIT accounting system?

a. Batching vendor deliveries before recording in the accounting records.
b. Increasing the traceability of costs with fewer cost pools.
c. Increasing the number of inventory accounts in the general ledger.
d. a and b.
e. All of the above.

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