CostAccount

ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

STRATEGI
CCOSTMANAGEMENTANDJI
T B.commonemphasisonstandar
dizat
ionandst
andardcost
s.
C.devel
opmentandi
mplementat
ionofthebusi
nessst
rat
egy.
THEORI
ES: D.aandc.

1
. Themajorfunct
ionsofmanagementar e 7.Whi chf ocusesonpr ocessimpr ovement ,processi
nnovat
ion,orbusi
ness
A.strat
egicmanagementandl ong-
rangeplanning. reengineer i
ng?
B.planninganddecisi
onmaking. A..funct i
onal-basedr esponsi
bil
ityaccount i
ng
C.identi
fyi
ngthreat
sandoppor t
uni
ti
esfort
hef i
rm. B.act ivit
y-basedr esponsibi
li
tyaccounting
D.alloftheabove. C.st r
at egic-basedresponsibil
it
yaccount ing
D.noneoft heabove
2.Thet
hreemajortypesofcompet it
ivestr
ategyinclude
A.costl
eadershi
p,diff
erent
iat
ion,andpr oducti
vi
ty. 8.Theopt
imall
eveli
ntheopt
imalcostmanagementsyst em i
swhen
B.costl
eadershi
p,focus,andproduct i
vit
y. A.measurementcost
saregreat
erthanerrorcosts
C.di
ffer
enti
ati
on,focus,andproductivi
ty. B.measurementcost
sarelesst
hanerrorcosts
D.costl
eadershi
p,diff
erent
iat
ion,andf ocus. C.thetot
alofmeasur
ementcostsanderrorcostsaremini
mized
D.bothbandc
3.Sust
ainabil
i
tymeansthebalanci
ngof
A.shortterm andl
ongter
m goalsi
neconomicperformance. 9.Arepetit
iveacti
onf ulf
il
l
ingabusinessfunct
ionandincr
easi
ngthewort
hof
B.shortterm andl
ongter
m goalsi
nsoci
alaspect
s. t
hepr oductandt hepr i
cethatthecust
omeriswil
li
ngtopayfort
heproduct
C.shortterm andl
ongter
m goalsi
nenvi
ronmentalaspect
s. i
sreferr
edt oasa:
D.alloftheabove. A.non- valueaddedact ivi
ty
B.value- addedact i
vi
ty
4.Si
mult
aneousengi neeringcanbeusedt o C.businessvalue- addedact i
vi
ty
A.reducebothpr oductandpr ocesscompl exi
ty. D.act i
vi
tyanalysis
B.int
egrat
eact i
vi
ty-basedcost i
ngwi t
hvaluechainanalysis.
C.reduce the t
ime- t
o- marketofnew pr oductsthrough elimi
nat
ion of 1
0.The actualtime thata pr
oductmustbe delayed whi
l
e wai
ti
ng t
o be
batch-l
evelacti
vit
ies. processediscall
ed:
D.reducemanuf acturi
ngcycl eeff
ici
encybyr educi
ngpr ocesswast
e. A.ser vi
cet i
me C.transf
ertime
B.i nspect
ionti
me D.idleti
me
5.Engagi
ng inwhichoft hefoll
owing wi
l
lresul
tinradicalchangesbei
ng
madetoanor gani
zati
on'spr
ocesses? 1
1.Ther esourceuti
l
izedbyagi
venpr
oductdi
vi
dedbythetotal
amountoft
he
A.Continuousimprovement C.Reengi
neeri
ng resourceavail
ableiscal
l
edt
he
B.Benchmar ki
ng D.Masscustomizati
on A.act ivi
tydri
ver C.costobj
ect
B.consumpt i
onr at
io D.sust
aini
ngact
ivi
ty
6.I
nthecont
emporarybusi
nessenvi
ronment
,cos
tmanagementf
ocusi
son
A.fi
nanci
alr
eport
ingandcostanal
ysi
s. 1
2.Thepr
imar
yobj
ect
iveofj
ust
-in-
timepr
ocessi
ngi
sto

805
 CostAccount
ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

A.accumulateoverheadinactivit
ycostpools A.I
. C.I
,II
,II
I.
B.el
iminateorreduceallmanuf actur
ingi
nventor
ies B.I
,II
I. D.I
I,I
II
.
C.i
dentif
yrelevantact
ivi
tycostdriver
s
D.noneoft hem 1
7.Thef l
owofgoodst hroughaJI Tsystem i
sbasedon:
A.awor kstat
ioneffi
cientl
ycompl eti
ngitsprocessingofabat chofunit
s
1
3.The benef i
tsofa successf ulJust
-In-
Time syst
em incl
ude al
loft
he sot hattheuni t
scanpr oceedforwardtot henextwor kst
ationbefor
e
fol
l
owi ngexcept: thenextwor kst
ationisreadytoreceivethem.
A.f undst i
edupininventori
esarerel
easedforuseel
sewhere. B.pr ocessi nggoodsi nlargebatchsizesr atherthanlesseconomi cal
B.invent orybuf
fersareincr
eased. smal lbatches.
C.thr oughputti
mei sreduced. C.mai ntai
ning ast ockpil
e ofraw mat eri
alsi n ant
ici
pati
on ofmat eri
als
D.def ectratesaredecreased. shor t
ages.
D.pr oduci ngtomeetcust omerdemandwi thnobui ldupofinventor
yat
1
4.Whi
choft hefoll
owingisnotabenef
itofjust
-in-
timepr
ocessi
ng? anypoi ntinthepr oductionprocess.
A.Controlofsi
gnifi
canti
nvent
orybalances.
B.Enhancedpr oductqual
it
y. 1
8.Underjust-
in-
timeprocessi
ng
C.Reductionofreworkcosts. A.rawmat er
ial
sar
er ecei
vedjustinti
mef oruseinproduct
ion
D.Productioncostsavi
ngs. B.subassembl ypart
sar ecompl etedjusti
nt i
mef orusei nassembl
i
ng
f
ini
shedgoods
1
5.Akeyconceptoft heJITinventorysystem is: C.fini
shedgoodsarecompl et
edj usti
nt i
met obesold
A.therawmat eri
als,workinpr ocess,andf ini
shedgoodsi nvent ori
esof D.alloftheabove
manuf acturi
ng compani esactasbuf fersso thatoper ati
onscan
proceed smoot hl
y even ifsuppl i
ersar elat
e with del i
veriesora 1
9.AsuccessfulJITsystem i
sbaseduponwhi chofthef ol
l
owi ngconcepts?
departmenti sunabletooper ateforabr i
efper i
odduet obr eakdowns A.Thecompanymustr el
yuponal argenumberofsuppl ier
stoensur e
orotherreasons. frequentdeliver
iesofsmalllots.
B.theuseofmanysuppl ier
ssoast oensur erapiddeliver
yofmat eri
als B.The companyshoul d al
wayschoose t hose suppl i
ersofferi
ng the
forproduct i
on. lowestpr i
ces.
C.the maintenance ofa st ock ofr aw mat eri
als so thatdef ecti
ve C.Thecompanyshoul davoidl ong-term contr
actswithsuppl i
erssoas
material
scanber eplacedqui ckl
ysoast omai ntainahi ghr ateof to exer tpressure on suppl ier
st o make pr omptand f requent
producti
vity. deliver
ies.
D.i
nventoriesar ecostl
yt ocarryandcanbekeptt omi ni
mum l evelsor D.A smal lnumberofsuppl iersmake f r
equentdel i
veriesofspeci fi
c
eli
minatedcompl et
elywithcarefulplanning. quant i
ti
esthusavoi di
ngthebui l
dupofl argeinventori
esofmat eri
als
onhand.
1
6.Thejusti
nti
me(JIT)conceptappli
estowhi
chofthefol
l
owi
ng:
I.Theacquisi
ti
onofrawmat eri
als. 20.
Acompanyadopti
ngt heJITappr
oachwould:
II
.Theassemblyofmanuf act
uredpart
sinpr
oducts
. A.produce l
arge batches ofproduct
s so as t
orecoup t
he cost
s
II
I
.Theshipmentoffi
nishedproductst
ocust
omers. associ
atedwit
hset ups.

806
 CostAccount
ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

B.att
emptt or educe setup ti
me so asto economi
call
ypr oduce in 25.
A just-
in-ti
me manuf actur
er is more li
kely t
han a convent
ional
small
erbatches. manufacturerto
C.adaptafunctional
plantlayoutsoast
oenhanceproducti
onflexi
bil
i
ty. A.receivemor efrequentdel
iveri
esofmat
eri
als
.
D.requi
rewor kerstobecomehi ghl
yspeci
ali
zedinoperati
ngasi ngle B.spendl essmoneyonadver ti
si
ng.
machine. C.needwor kerswit
hfewerskill
s.
D.alloftheabove.
21
.Convent i
onal andj ust
-in-
timemanuf act
urer
sdif
feri
nthattheconvent
ional
manufacturerisli
kelyto 26.
Just-
in-t
imemanuf act
uring
A.beanewent r
antintoit
sindust
ry. A.isademandpul lr
atherthanapushthr
oughthesystem
B.needl essst or
agespacet hani
tsJITcompeti
tor
s. B.allowst hefi
rmtof ocusonqualit
yandproducti
vi
tysi
mult
aneousl
y
C.givelesscr edibil
it
ytomanagementaccount i
ngreport
s. C.increasespr oductcostaccuracybyincr
easingaf i
rm’
D.haveal ongerpr oducti
oncyclethanit
sJITcompeti
tor
s. cost
st oproducts
D.alloftheabove
22.
InJITmanufacturi
ng,eachoper at
ionproduces
A.onl ywhatisnecessar yfort
hesucceedingoper
ati
ons 27.
IfJI
Tmanuf acturi
ngisused,mai
ntenanceoft hepr oduct
ionequi
pment
B.al lt
hati
tcant ooffsetfi
xedcosts wouldbeclassif
iedasa
C.af i
xedper cent
agei nexcessofor derstoensureadequat
equal
i
ty A.unit
-levelacti
vit
y C.pr oduct-l
evelacti
vi
ty
stock B.cell
-l
evel acti
vi
ty D.f aci
li
ty-
levelacti
vi
ty
D.al lt
hati
tcani nordertobuil
dinvent
ori
es
28.
UnderJI T manufact
uri
ng,manyoverhead costsformer
lyclassif
ied as
23.
Manycompani eshavesi gnif
icant
lylower
edi
nvent
oryl
evel
sandcost
s indi
rectcostsar
enow
usi
ng A.el i
minated C.nol ongertr
aceabl
e
A.acti
vit
y-basedcosti
ng. B.depr eciat
ed D.directl
ytr
aceablet
othepr oduct
B.anent er
pri
seresourceplanningsyst
em.
C.thejust-
in-
timemethod. 29.
When JI T manufacturi
ng is used,which ofthe fol
lowing cost
si s
D.atotalqual
it
ymanagementsyst em. consider
edani ndi
rectproductcost
?
A.t hecosttosetupcellequipmentC.proper
tyt
axesont heplant
24.
JITmanuf act
uringemphasi zes B.t hecostofmaintenanceonequi pment D. sal
ary of t he cel
l
A.largeamount sofinventoryonhandsothatthecompanydoesnotr un supervi
sor
outofit
B.smal lamount sofi nventoryonhandresult
inginlowerquali
tygoods 30.
When JIT manuf act
uring i
s used,which ofthe fol
lowi
ng costsi
s
becausepr oducti
oni srushed consi
deredadir
ectpr oductcost
?
C.r educi
ng investmenti ni nvent
oryand i
ncreasi
ng the emphasi
son A.insur
anceont heplantandequipment C. janit
ors’
quali
ty B.repai
rpart
sfort hemachinery D.salaryoft
heplantsuper
visor
D.bot hbandc
31
.Pr
obl
ems encount
ered wi
th usi
ng t
radi
ti
onalpr
oductcost
ing f
orJI
T

807
 CostAccount
ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

manufacturi
ngusuallystem fr
om 38.
The company'sgoalf
ordef
ect
ive uni
tsasaper
cent
age oft
otaluni
ts
A.assigningdi
rectmat eri
alscost
stounit
sofproduct
. producedshoul
dbe:
B.assigningdi
rectlaborcoststounit
sofproduct. A.1 .
50% C.0. 05%
C.assigningoverheadcost stouni
tsofproduct
. B.0. 00% D.0. 53%
D.all
oft heabove.
39.
All
oft
hefoll
owi
ngar
eexampl
esofnon-
value-addedact
ivi
ti
esexcept
32.
Acharact
eristi
cofthej ust
-in-t
imemanufactur
ingenvi
ronmenti
s A.order
ing C.receivi
ng
A.fr
equentdel iver
iesofmat eri
als B.assembli
ng D.inspecti
ons
B.manuf acturi
ngcells
C.li
tt
leornoi nventoryoffi
nishedproduct 40.
Sequencingi
f-t
henstatement
sisasi
mpl
emet hodof:
D.alloft
heabove A.testi
ngastrat
egy C.creati
ngleadmeasures
B.prior
it
izi
ngobject
ives D.evaluati
ngperfor
mance
33.
Just
-in-
timerelatesto
A.peopl egetti
ngt otheirj
oblocati
onj usti
ntimetobeginthei
rwork. 41
.Setti
ngbalancedobj ect
ives
,sett
ingtargetval
ues,andal
i
gni
ngr
ewar
ds
B.machi neryplacedi nservi
cejustintimetobeginproducti
on. ar
e:
C.mat eri
alsreceivedfrom suppli
ersjustinti
meforproducti
onneeds. A.necessarystepsincreati
ngabalancedscorecard
D.alloftheabove. B.import
antaspect softhecapit
albudgeti
ngprocess
C.theheartofprocessinnovat
ion
34.
Whi
chofthefol
l
owingisaval
ue-
addedacti
vit
y? D.thei
ngredientsforeconomicforecast
ing
A.Engi
neeri
ngdesign. C.Inventor
ystorage.
B.Machiner
yrepai
r. D.Inspecti
ons. 42.
Del
i
veryperformancedecl
i
nesby:
A.incr
easingcyclet
ime C.i
ncreasingvel
ocit
y
35.
Whi
chofthefol
l
owingisanonval
ue-
addedacti
vit
y? B.decreasingcycl
eti
me D.decreasingt
urnover
A.Engi
neeri
ngdesign. C.Inspect
ion.
B.Machini
ng. D.Packaging. 43.
Just
-in-
timeprocessing
A.isbasedonaj ust
-in-casephil
osophy.
36.
Anonvalue-addedact
ivi
tyi
naser
viceent
erpr
iseis B.result
si napushappr oach.
A.takingappoint
ments. C.advert
isi
ng. C.mi ni
mi zesi
nventorystorageandwaiti
ngt
ime.
B.travel
ing. D.alloft
hem. D.allofthese.

37.
Val
ue-addedacti
vit
ies 44.
Anel
ementofj ust-
in-
timeprocessi
ngis
A.shouldbereducedoreliminat
ed. A.dependablesupplierswhoarewill
i
ngtodel
i
veronshor
tnot
ice.
B.invol
veresour
ceusaget hatcust
omersarewil
li
ngt
opayf or
. B.amulti-ski
l
ledworkforce.
C.addcosttoapr oductwit
houtaff
ecti
ngthesel
li
ngpri
ce. C.atot
al qual
itycont
rolsyst
em.
D.cannotbediff
erenti
atedfr
om nonval
ue-addedact
ivi
ti
es. D.al
lofthem.

808
 CostAccount
ingSyst
ems
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C.St
rat
egi
cCostManagementandJIT)

45.
Whi
chaccountisusedinjust
-in-
timepr
ocessing? A.IandII C.I
IandI
II
A.Rawmaterial
sinventor
y C.Mer chandisei
nvent
ory B.I
IIandV D.I
IandI
V
B.Worki
npr ocessinvent
ory D.RawandI n-Pr
ocessinvent
ory
50.
Whi
chgr oupsofempl
oyeesar
enon-
val
ue-addedwor
ker
s?
46.
Under just
-in-ti
me processi
ng,al
lofthe fol
lowi
ng arerecei
ved or A.I
,II
,andI I
I C.I
,II
IandV
compl
eted“ justint
ime”except B.I
II
,IV,andV D.I
,II
,andIV
A.fi
nishedgoods. C.suppli
es.
B.rawmat eri
als. D.subassemblypar
ts. PROBLEMS:
Questi
ons1&2arebasedont
hef ol
l
owinginf
ormati
on.
47.A j
ust-i
n-ti
memanufact
uri
ng pr
ocessshoul
d havesubstanti
all
yl essof Brad Company devel
oped the fol
l
owing budgeted l
if
e-cycl
e income
whichofthefol
l
owi
ngthanatr
adit
ional
manuf
acturi
ngprocess? st
atementf
ortwopr
oposedproduct
s.Eachproduct
'sl
if
ecycl
eisexpectedt
o
A. B. C. D. betwoyears.
I
dleTime Yes Yes Yes No
Tr
ansferTime Yes No Yes Yes ProductA ProductB Total
Val
ue-added Yes No No No Sales P230,000 P220,000 P450,000
Ti
me Costofgoodssol d 150,000 150,000 300,000
CycleTi
me Yes Yes Yes No Grosspr of
it P80,000 P70,000 P150,000
Periodexpenses:
48.
Manuf act
uri
ngcycl eef fi
ciencyshoul
dbei
ncreasedbyempl
oyi
ngwhich
Resear ch and (
60,
000)
ofthefoll
owingt echniques?
devel opment
A. B. C. D. Mar keting (
50,000)
Just-i
n-Ti
meI nventory Yes Yes No Yes
Li
fe- cycleincome P40,000
Flexi
ble Manuf acturi
ng Yes Yes No No
Systems A10% ret
urnonsal
esi
srequi
redfornew pr
oducts.Becauset
heproposed
BatchManuf acturi
ng Yes No No Yes pr
oduct
sdidnothavea10% r
etur
nonsales,theproduct
sweregoi
ngtobe
dr
opped.
Questi
onNos.49 and50 ar ebasedont hef ol
lowing:
SmallComputerCompanyhast hef
oll
owi ngper sonnel: Relati
vetoPr oductB,Pr oductA requi
resmor eresearchanddevelopment
I. Twoinspectors:inspectt
hefinal comput er
s costsbutf ewerresourcest omarketthepr oduct
. Seventypercentofthe
II
. Fourfabri
cators:makethecomput ercases researchanddevelopmentcost saretraceabl
et oProductA,and40percent
II
I. Twocomput erpr ogr
ammer s:r unal lofthebookkeepi
ngf
ort
he ofthemar ket
ingcostsaretraceabl
etoProductA.
accounti
ngrecor ds
IV. Sevenassembl ers:manufacturet hemot herboar
ds i
. I
fresear
chanddevelopmentcost
sandmarketi
ngcost
sar
etr
acedt
oeach
V. Oneowner :wr it
esthepaychecks pr
oduct,l
if
e-cycl
eincomeforPr
oductAwouldbe
A.P1 8,
000 C.P70,000
49.
Whi
chgr
oupsofempl
oyeesar
eval
ue-
addedwor
ker
s? B.P22,000 D.P80,000

809
 CostAccount
ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

4-i
nch 6,000 15,000r ol
l
s
i
i
. Ret
urnonsal
esf
orPr
oductAwoul
dbe 6-i
nch 10,000 12,500r ol
l
s
A.34.8% C.7.
83% 9-i
nch 8,000 11,
200r ol
l
s
B.10% D.8.
89% Aft
erinstal
li
ng JIT,thr
ee manufact
uri
ng cell
s were created and the cel
l
workersweret rai
nedtoperform mai
ntenance. Maintenancecost sforthe
Quest i
ons3&4arebasedont hef ol
lowinginfor
mat i
on. thr
eecellsst
il
ltotal
edP840,
000;however ,thesecostsarenow t r
aceableto
Wi ne Factorysel
l
sa pr oductforP1 50 peruni t
.I t
smar ketshareis25 eachcell
.
per cent. The marketi
ng managerf eelst hatthe mar ketshare can be Cel
l,4-i
nch P220,000
i
ncr easedt o33percentwithar educti
oninpr icetoP1 30. Theproductis Cel
l,6-i
nch 300,000
curr entl
yearni
ngapr ofi
tofP24peruni t. Thepr esi
dentofWi neFactory Cel
l,9-i
nch 320,000
feelst hatt
heP24profi
tperuni
tmustbemai ntai
ned.
vi
.Themai nt
enancecostperr
ollof4-
inchi
nsul
ati
onbef
oreJI
Tisi
nst
all
ed
i
i
i.Whati
sthet
argetcostperuni
t? woul
dbe
A.P130 C.P1
06 A.P24.
00 C.P14.00
B.P150 D.P1
26 B.P17.
50 D.P13.16

i
v.Whati
stheor
igi
nal
costperuni
t? vi
i
.Themai nt
enancecostperr
ollof9-
inchi
nsul
ati
onbef
oreJI
Tisi
nst
all
ed
A.P130 C.P1
06 woul
dbe
B.P150 D.P1
26 A.P17.
50 C.P28.57
B.P25.
00 D.P75.00
v. Hri
st ecCompanysel lsapr oductforP21 5peruni t
.It
smar ketshareis20
percent.The mar keti
ng managerf eelsthatt he marketshare can be vi
i
i.Thepr oductcellf
orCr aneCompanyhasbudget edconversioncost
sof
i
ncreasedt o30per centwi t
har eductioninpricetoP1 95.Thepr oductis P420,000f ort
heyear .Thecelli
splannedtobeavailabl
e2,100hoursfor
currentl
y earni
ng a pr of
itofP45 peruni t
.The pr esi
dentofHr i
stec producti
on. Each uni trequi
resP1 2.
50 ofmat er
ialscosts. The cel
l
Companyf eel
sthattheP45pr ofi
tperunitmustbemai ntai
ned.Whatist he st
artedandcompl eted700units.Thecel l
processt
imef ort
heproductis
ori
ginalcostperunit
? 15mi nut
esperunit.
A.P1 70 C.P21 5 Whati sthetot
alproductcostf
ortheperiod?
B.P1 95 D.P1 50 A.P35, 000 C.P40, 000
B.P38, 750 D.P43, 750
Questi
onNos.6and7ar ebasedont hefol
lowing:
Pri
ortoi nst
all
ing aJI
Tsyst em,Fr i
endlyCompanyusedmachi nehourst o i
x.Bi
gComput er
shast hefol
lowingpersonnel
:
assi
gnmai ntenancecoststoitst
hreepr oductsof4-inch,6-
inch,and9- inch Sevenassembl ers:manuf act
urethemot herboar
ds
i
nsulat
ion.Themai nt
enancecost stotal
edP840, 000peryear . Themachi ne Oneowner :wr i
testhepaychecks
hoursusedbyeachpr oductandt hequant i
typroducedofeachpr oductare Twoinspectors:inspectthefi
nalcomput er
s
asfoll
ows: Threef
abricators:maket hecomput ercases
Machi neHour s Quanti
tyProduced One comput erpr ogrammer : runs allofthe bookkeepi
ng f
ort
he

81
0
 CostAccount
ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

accounti
ngrecor ds aboutoneoft hecompany' sproducts:
Twoshippingcl er
ks;shipcomputer
stot
hewar ehouse Theoreti
cal annual capacity 2,200
Whatwouldbet hevalue-addedl
aborrat
iof
ort
hiscompany? Actualproduct i
on 2,000
A.4/8or37.5per cent C.5/8or62.5per cent Producti
onhour savailable 1 ,
000
B.½ or50per cent D.¾ or75per cent On- t
imedel iveri
es 900
Totaldel
iveries 940
Questions10&1 1arebasedont hefol
l
owingi
nformati
on. Numberofdef ecti
veuni t
s 30
Atthebegi nningof2005,Pet ersonCompanyinstal
l
edaJITpur
chasi
ngand Thecompany' son- ti
medel iverypercent
ageis:
manuf act
uringsyst em.Thef oll
owinginf
ormati
onhasbeengatheredabout A.90per cent C.94per cent
oneoft hecompany' sproduct
s : B.95. 7percent D.1 04.
4percent
Theoreti
cal annualcapacit
y 2,200
Actualproduct i
on 2,000
Productionhour savail
abl
e 800
On- t
imedel iveri
es 900 i
. Answer:A
Totaldeli
veries 950 Grossprofi
t P80,
000
Deduct:
x. Thet
heoret
ical
vel
ocit
yis: Researchanddevel
opmentcost
s(0.
70xP60,
000) (42,000)
A.2.32uni
tsperhour C.2.
5uni
tsperhour Marketi
ngcost
s( 0.
40xP50,000) (20,000)
B.2.44uni
tsperhour D.2.
75uni
tsperhour Li
fe-cycl
eincomeofProductA P18,000

xi
.Actualvel
ocit
yis: i
i
. Answer:C
A.2.5unit
sperhour C.2.
32uni
tsperhour Ret
urnonsal
es,Pr
oductA:(
P18,
000÷P230,
000)=7.
83%
B.2.75unit
sperhour D.2.
44uni
tsperhour
i
i
i.Answer :C
xi
i
.Dapi t
an,Inc.manuf actur
es a productthatexper
iences t
he f
oll
owi
ng Targetpri
ce P130
act
ivi
ti
es: Lesstargetpr
ofi
t 24
Pr
ocessi
ng( t
hreedepartments) 40hours Targetcost P1
06
Moving(f
ourmoves) 18hour
s
Wait
ingti
me 42hours i
v.Answer:D
St
orageti
me( befor
edeliver
y) 100hours Ori
ginalsel
li
ngpri
ce P1
50
TheMCEf ortheproductis Lessprofi
t 24
A.5% C.20% Ori
ginaluni
tcost P126
B.25% D.40%
v. Answer:A
xi
i
i.Atthebegi
nni
ngof2007,SanchezCompanyinst
all
edaJI
Tpurchasi
ng Or
igi
nalCost
:(P21
5–P45)=P1
70
andmanufact
uri
ngsyst
em.Thefol
l
owi
nginfor
mati
onhasbeengather
ed

81
1
 CostAccount
ingSyst
ems
(
C.St
rat
egi
cCostManagementandJIT)

vi
.Answer
:C
Mai
ntenancecostperMH:(P840,
000÷24,000) P25
Mai
ntenancecostperr
oll
,4-
Inch(6,
000xP35÷1 5,
000) P14

vi
i
.Answer
:C
Maint
enancecostperuni
t,9-
Inch:(
P320,
000÷1
1,200)=P28.
57

vi
i
i.Answer:D
Materi
alscost(
700xP12.
50) P 8,
750
Conversi
oncosts(
700x0.25xP200) 35,
000
Tot
al P43,
750

i
x.Answer:C
Val
ue-addedlabor
:
Assembl er
s 7per
sonnel
Fabricat
ors 3per
sonnel
Total 10per
sonnel
Val
ue-addedacti
vi
tyr
ati
o:(
10÷1
6) 5/
8or62.5%

x. Answer:D
Theoret
ical
vel
oci
ty=Theor
eti
calcapaci
ty÷Avai
labl
ehour
s
(2,200unit
s÷800hours)= 2.
75unitsperhour

xi
.Answer :A
Actual
Vel
oci
ty:Act
ual
Product
ion÷Avai
l
abl
eHour
s
(2,
000÷800)=2.5uni
tsperhour

xi
i
.Answer
:C
MCE=ValueAddedTi
me÷Thr oughputTi
me
40÷(40+18+42+1 00)=0.
20

xi
i
i.Answer:B
On-t
imeDeli
ver
yPercentage=On-
timeDel
i
ver
y÷Tot
alDel
i
ver
y
(900÷940)=95.7%

81
2