IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1281:

  If a worker encounters a production kanban at his/her workstation,the worker should

  A. Release the requested item to the next stage in the process.

  B. Begin manufacturing the requested item.

  C. Initiate a purchase order with the supplier of the requested item .

  D. Confirm the amount of the item requested and present the kanban to the production supervisor.

  Correct Answer: B

  In a kanban inventory control system,a production kanban is an indication to a worker to begin producing the item referred to on the kanban.

• Question 1282:

  Just -in-time manufacturing practices are based in part on the belief that

  A. High inventory levels provide greater flexibility in production scheduling.

  B. Attempting to reduce inventory to a consistently low level can lead to "panic"situations.

  C. Goods should be"pulled"through the production process,not"pushed"

  D. Beefed-up internal control in the centrel warehouse can greatly enhance productivity in the production areas.

  Correct Answer: C

  Just-in-time(JIT)manufacturing is a pull system;items are pulled through production by current demand,not pushed through by anticipated demand as in traditional manufacturing setups.

• Question 1283:

  Key Co.changed from a traditional manufacturing operation with a job-order costing system to a just-intime operation with a backflush costing system.what is(are)the expected effect(s)of these changes on key'inspection costs and recording detail of costs tracked to jobs in process?

  

  A. Decrease Decrease

  B. Decrease Increase

  C. Increase Decrease

  D. Increase Increase

  Correct Answer: A

  In a JIT system,materials go directly into production without being inspected.the assumption is that the vendor has already performed all necessary inspections.the minimizationof inventory reduces the number of suppliers,storage costs,etc.backflush costing eliminates the traditional sequential tracking of costs.be charged initially to cost of sales,and costs may be fluhed back to the inventory accounts only at the end of the period.thus,the detail of cost accounting is decreased.

• Question 1284:

  The effectiveness of a JIT system is often facilitated by the elimination of some commen forms of internal control.the elimination of which internal control is usually acceptable with a JIT system?

  A. Prepation of hard copy receiving reports.

  B. Voucher approval priot to paying accounts payable.

  C. Two signatures required on large cheaks.

  D. Locked doors on production areas.

  Correct Answer: A

  Receivivg departments are often eliminated with a JIT system so receiving reports are not needed.also,the quality received should be exactly equal to immediate production needs.

• Question 1285:

  In belk Co.'s just-in-time production system,costs per setup were reduced from $28 to $2.in the process of reducing inventory levels,belk found that there were fixed facility and administrative costs that previously had not been included in changes on belk's economic lot size and relevant costs?

  Lot size Relevant costs

  A. Decrease Increase

  B. Increase Decrease

  C. Increase Increase

  D. Decrease Decrease

  Correct Answer: D

  The economic lot size for a production system is similar to EOQ.example,the cost per set- up is equivalent to the cost per order (a numberator vaue in the EOQ model).hence,a reduction in the setup costs reduces the economic lot size as well as the relevant costs.the fixed facilty and administrative costs,however,are not relevant.the basis EOQ model includes variable costs only.

• Question 1286:

  A manufacturing company is attempting to implement a just-in-time(JIT)purchase policy system by negotiating with its primary suppliers to accept long-term purchase orders which result in more frequent deliveries of smaller quantiteies of raw materials.if the JIT purchase policy is successful in reducing the total inventory costs of the manufacturing company,which of the following combinations of cost changes would be most likely to occur?

  

  A. Purchasing costs Stockout costs

  B. Purchasing costs Quality costs

  C. Quality costs Ordering costs

  D. Stockout costs Carrying costs

  Correct Answer: D

  The objective of a a JIT sytem is JIT system is to reduce carrying costs by eliminating inventories and increasing the deliveries made by suppliers.ideally,shipments are received just in time to be incorporated into the manufacturing process.this system increases the risk of stockout costs because the inventory buffer is reduced or eliminated.

• Question 1287:

  Which changes in costs are most conducive to switching from a traditional inventory ordering system to a just-in-time ordering system?

  

  A. Increasing Increasing

  B. Decreasing Increasing

  C. Decreasing Decreasing

  D. Increasing Decreasing

  Correct Answer: B

  A JIT system is intended to minimize inventory.thus,if inventory carrying costs are increasing,a JIT system becomes more cost effective.moreover,purchases are frequent in a JIT system.accordingly,a decreasing cost per purchase order is conducive to switching to a JIT system.

• Question 1288:

  Bell co.changed from a traditional manufacturing philosophy to a just-in-time philosophy.what are the expected effects of this change on bell's inventory turnover and inventory as a percentage of total assets reported on bell's balance sheet?

  

  A. Decrease Decrease

  B. Decrease Increase

  C. Increase Decrease

  D. Increase Increase

  Correct Answer: C

  A JIT system is intended to minimize inventory.inventory should be delivered or produced just in time to be used.Thus ,JIT increases inventory turnover(cost of sales+average inventory)and decreases inventory as a percentage of total assets.

• Question 1289:

  The benefits of a just-in-time system for raw materials usually include

  A. Elimination of nonvalue-adding operations

  B. Increase in the number of suppliers,thereby ensuring competitive bidding.

  C. Maximization of the standard delivery quality,thereby lessening the paperwork for each delivery.

  D. Decrease in the number of deliveries required to maintain production.

  Correct Answer: A

  Nonvalue0adding activities are thise that do not add to customer value or satisfy an organization need.inventory activities are inherently nonvalue-adding.thus,a system,such as JIT,that promotes lean production and reduces inventory and its attendant procedures(storage,handling,etc.)also redces nonvalue-adding activities.

• Question 1290:

  Companies that adopt just-in-time purchasing systems often experience

  A. A reduction in the number of suppliers.

  B. Fewer deliveries from suppliers.

  C. A greater need for inspection of good as the good arrive.

  D. Less need for linkage with a vendo's computerized order entry system.

  Correct Answer: A

  The objective of jit is to reduce carrying costs by eliminating inventories and increasing the deliveries made by suppliers.Ideally,shipments of raw materials are received just in time to be incorpotated into the manufacturing process.the focus of quality control under jit is the prevention of quality problems.quality

  control is shifted to the supplier.Jit companies typically do not inspect incoming goods;the assumption is that receipts are of perfect quality.suppliers are limited to those who guarantee perfect quality and prompt delivery.