Its standards do not apply to services such as health care, banking, and transportation. d. not more than 3.4 faults for every 10,000 units. Senior managers spend 10-20% of time on budget-related issues. Which of the following aspects of manufacturing must be understood in order to implement activity based costing in a production setting? c. 50-fold d. Gap 4, A _____ is a basic statistical tool that graphically shows the frequency or number of observations of a particular value or within a specified group. c. purchasing $32,000 Which of the following is an example of a non-value-added activity? a. kaizen Foreign demand for a country's currency minus foreign supply. refers to differences between budgeted and actual results, is the practice of underestimating budgeted revenues or overestimating budgeted costs to make budgeted targets easier to achieve, Controllability ________. Design Which of the following statements is true regarding kaizen? For cost-based pricing in multiple-product companies, which of the following is most likely to be used as a cost basis? d. It attempts to achieve radical improvements in a very short time period. Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. It is embodied in what Dr. W. Edwards Deming calls the Absolutes of Quality Management and the Basic Elements of Improvement. d. identifying means to remove the causes of defects. Scrap and rework costs Maximizing gaps 4 and 5 will result in high customer satisfaction. 1. 2) Total costs will be lower for the regular size operation. c. decrease the time required for completing a process. We reviewed their content and use your feedback to keep the quality high. 2011-2023 Sanfoundry. Today KAIZEN is recognized worldwide as an essential pillar of an organization's long-term competitive strategy. To apply the techniques of process management, processes must be _____. Which of the following statements is true of activity-based costing? a. d. treatment errors between the server and the customer. Employee empowerment will allow kaizen to occur more easily. Which of the following responsibility accounting systems assigns responsibility to organizational units? a. Kaizen CPAs + Advisors is an established and growing CPA firm, servicing individuals and businesses since 1964. Dynamic Six Sigma The updated data in the budget business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers, resulting in a clear financial return for the organization. Units of finished goods to be produced It tends to seek change and increased business productivity through large-scale, radical shifts. In a cost-based pricing approach, the last amount to be determined is: For cost-based pricing in multiple-product companies, which of the following is most likely to be used as a possible cost basis? A . d. It attempts to achieve radical improvements in a very short time period. d. It attempts to achieve radical improvementsin a very short time period. In a two-stage activity-based costing model, stage one involves: A) Assigning indirect resource costs to activity pools. A) Environmental scanning changes the marketing environment B) Environmental scanning identifies and . b. 2,200 units This pairs with being a Change Advisory Board member. b. b) The Project priority matrix is best used in the analyze phase of DMAIC. b. Histograms b. identifying customers and their priorities. (c) the literal translation is change-good. is more expanded and focuses on gaining information and knowledge in addition to control It tends to seek change and increased business productivity through large-scale, radical shifts. Control Cost-based pricing has traditionally been widely used because: Which of the following is not a drawback to cost-based pricing? c. tend to deliver unique products that are tailored to the specific needs of an individual customer. In the case of a manufacturing company, which of the following is an example of a value-creation process? a) 5S b) Poka-Yoke Budgets provide a framework for judging performance and facilitating learning. Product-liability costs 'This beautiful, simple book suggests tiny changes we can make to improve all areas of life, from friendships to a cluttered flat.' x+2y82x+y8x2y2. It was developed by Kaoru Ishikawa. They have the authority to design the processes that will be used by the top management team in their organization. True North Thinking Inc. #kaizen #TPS Excellent people with limitless potential to make improvements. They align closely to an organization's core competencies and strategic objectives. Which of the following product costing methods produces the most precise product costing information? c. not more than six rejects for every 100 units. d. ISO. C) Defining processes and identifying key activities helps management better understand the business and to evaluate whether activities performed add value to the customer. Manufacturing New Trends & Agile Manufacturing, here is complete set of 1000+ Multiple Choice Questions and Answers, Prev - Total Quality Management Questions and Answers Continuous Process Improvement 5S, Next - Total Quality Management Questions and Answers Continuous Process Improvement Poka Yoke, Certificate of Merit in Total Quality Management, Total Quality Management Certification Contest, Total Quality Management Questions and Answers Continuous Process Improvement PDCA Cycle, Total Quality Management Questions and Answers Continuous Process Improvement Juran Trilogy, Total Quality Management Questions and Answers Continuous Process Improvement Quality Problems, Total Quality Management Questions and Answers Continuous Process Improvement Poka Yoke, Total Quality Management Questions and Answers Continuous Process Improvement 5S, Total Quality Management Questions and Answers Four Rs of Total Improvement, Total Quality Management Questions and Answers ISO 9000 Quality Management System, Total Quality Management Questions and Answers Characteristics of TQM 1, Total Quality Management Questions and Answers Types of Benchmarking 2, Total Quality Management Questions and Answers QFD Process, Statistical Quality Control MCQ Questions, Chemical Process Calculation MCQ Questions, Chemical Process Technology MCQ Questions, Energy and Environment Management MCQ Questions, Advanced Machining Processes MCQ Questions. d. They add value directly to the product or service being produced. d. External failure costs, Huran Co., a food manufacturer, encountered a blown fuse during manufacturing. Currently attainable standards are based on an efficiently operating work force. 400 units c. benchmarking In an activity-based costing model, total costs assigned to cost objects may include: Which of the following is a true characteristic of activity-based costing? a. prevention costs d. Downgrading costs, _____ costs are costs expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems. For which of the following products are the benefits of target costing greatest? Which of the following statements is true regarding kaizen? c. job enrichment d. It guides teams to develop an improvement plan, try it out, examine the results, and institute changes, then repeat the cycle. The operating cycle of the business, Level 3 - The Story of King Arthur and His Kn, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas. Target costing forces design engineers to explicitly consider the costs of manufacturing and other aspects of business that traditionally fall outside the engineering department. They are sometimes called core processes. 200 units It focuses on respect for people and the belief that even small improvements can have a big impact. . Which of the following is a prevention cost? b. Which of the following is a challenge of the budgeting process? b. Selling price per unit c. Internal failure Theorganizationshould always seek perfection in some departments of theorganizationonly as perfection cannot be achieved in all departments.C . They are also responsible for taking corrective measures when they identify variations in the products. a. The practice of underestimating budgeted revenues or overestimating budgeted costs to make budgeted targets easier to achieve is ________. c) To make processes controllable b. In this exercise test the following hypotheses with $\alpha=.05$. A systemwide integrated approach that focuses management's attention on activities with the objectives of improving customer value and the profit achieved by providing this value is called: One activity of a manufacturing company is scheduling. c. project Overhead costs are assigned to activities; then costs are assigned to products. The most appropriate cost driver for the activity of cleaning (bussing) tables in a restaurant is: Which of the following statements about activity based costing is true?Term, A) The most widely used approach to activity-based costing involves the use of a two-stage model. b. employee behavior Which of the following is a reason why process management is important for organizations? a. provide the infrastructure for production or deliver processes to create or deliver the actual product. c. It is the first version of the ISO family of standards. A 1.8kg1.8 \mathrm{~kg}1.8kg mass oscillates on a spring hanging from the ceiling. tangibles, reliability, responsiveness, assurance, and empathy. Which of the following statements is true regarding kaizen? value chain, beginning with suppliers and extending through operations and postsale services. Senior managers spend 10-20% of time developing budgets. Which of the following statements is true regarding kaizen? Flowcharts enable management to study and analyze processes prior to implementation. Full-Time. Which of the following is one of the three major activities in process management that focuses on maintaining consistency in output by assessing performance and taking corrective action when necessary? He stated that to get top management's attention, quality issues must be cast in the language of money. Question 2. Kaizen works well in _________ and Kairyo works well in _____________ The process of comparing actual performance with standards and taking necessary corrective action is called (A) Controlling (B) Communicating (C) Co-operating (D) Co-ordinating Answer: (A) 2. Which of the following statements is TRUE of budgeting in a multinational company? The outputs of service processes are not as well defined as manufactured products. c. scatter diagram Which two of the following terms refer to finding and correcting defects as they occur? Lack of courteous behavior ________________ is a systematic approach to identifying the best practices to help an organization take action to improve performance. Mathematical representations of the relationships among operating activities, financing activities, and other factors that affect the master budget The manager at a multinational company earns revenues and incurs expenses from one currency in one country. Quality means conformance to elegance. Benchmarking encourages employees to continuously innovate. Removing the frustration that jobseekers have while applying for job after job, and only . b. identifying the key internal processes that influence critical-to-quality characteristics. Which of the following accurately describes the effect target costing has on the manufacturing design function? a. a. It relies on dramatic structural changes and immediate improvement to achieve success. 1. Selling price per unit Which of the following statements about kaizen is false? b) Quality awareness, quality control b. root cause c. They require lesser attention from the employees compared to value-creation processes. Which of the following statements describes the typical effect of creating a large number of refined activity cost pools for a given costing application? Failure to acknowledge a customer C. A country's capital inflow minus its capital outflow. 1 Defect prevention is a. Kaizen budgeting enables the manager to integrate the continuous improvement anticipated during the budget period into the budget numbers. c. He never defined or described quality precisely. Gap model b. When a service ranks low on the dimensions of customer contact, labor intensity, and customization, the service providers need to emphasize on _____ to provide a high quality service to the customers. b. They have the authority to certify the processes used by the suppliers of their organization. What is the key factor in the Court's decision to hear a case? b. improvement In General Electric's Six Sigma problem-solving approach, the improve phase involves: It is trying to obtain higher yields and reduce cycle times. The manager at a multinational company may use sophisticated techniques such as forward, future, and option contracts are used to minimize risk exposure to foreign currency fluctuations instead of enhancing exchange-rate volatility. B) Just-in-time (JIT). It is a quality standard with a goal of no more than 3.4 defects per million processes. Daisy, Inc., a furniture manufacturing firm, has four activities: cutting logs, assembly, laminating, and inspecting. d. It eliminates causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers. Which of the following is not the aim of Kaizen process? c) Discontinuous improvement, constant improvement (C) It is raising the performance standards of the organization. Investments only, The production budget is prepared after the ________. Identifying potential defects and errors and stopping a process before they occur is the best approach to avoid mistakes in a process. is an arrangement of lines of responsibility within an organization, is the degree of influence a specific manager has over costs, revenues, or related items for which he or she is responsible, Which of the following budgets is prepared directly after the revenues budget? $2,512 d. quality circle. d. It prescribes documentation for all processes affecting quality. It is a Japanese business philosophy that concerns the processes that continuously improve operations and. b) Communication skills a. Which of the following is a key point of Philip B. Crosby's Absolutes of Quality Management philosophy? the costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer. Matt Elson op LinkedIn: #kaizen #tps #toyotaproductionsystem #tntkaizen #pdca __________ improvement refers to discontinuous change, as opposed to the philosophy of kaizen. Emotional standstill. After using an ATM machine, Deborah forgets to remove her card from the machine. It focuses on small, gradual, and frequentimprovements. a. prevention costs Which of the following statements is/ are true? . ANS: B PTS: 1 DIF: Difficulty: Moderate Although adding more activity cost pools to an activity-based costing system may improve the precision of product costing, this increase in precision must be judged against: The cost of developing and maintaining the additional cost pools. revenues budget Revenues only 2,500 units _____ is the first stage of personal change. focuses on small, gradual, and frequent improvements over the long term, with minimum financial investment and with participation by everyone in the organization. a. a. Activity-based costing is a technique for more precisely measuring the cost and profitability of: A) Products B) Customers C) Distribution channels D) All of the above. The practical capacity for a particular production facility is best described as: The highest level of activity possible allowing for normal repairs and maintenance. d. Breakthrough. Services that emphasize on professional judgement of the employees often succeed in providing good solutions to customer problems. Which of the following statements about benchmarking is true? c) Fast-growth economy, fast-growth economy We ensure each client benefits from the expertise of our entire firm. b. process mapping It focuses on bringing about improvements in product and service quality by reducing variability in goods and services design and associated processes. Kaizen refers to _________ Which of the following statements is NOT correct about the Kaizen philosophy?A . This is an example of a poka-yoke technique designed to prevent: a. d. Job enrichment. It is an intense, rapid improvement process. In General Electric's Six Sigma problem-solving approach, the define phase involves: There is no need for. It focuses on small, gradual, and frequent improvements. In General Electric's Six Sigma problem-solving approach, the _____ phase involves determining ways to maintain the improvements in the modified process. Mistake proofing b. Iterative testing c. OA d. Early testing 2 Which of the following statements about environmental scanning is true? Control The manufacturing overhead budget, The following budgeted information relates to McKensie Spice Corporation: 1. For the population of women whose mothers took the drug DES during pregnancy, a Improvement c. Failure to understand and minimize gaps presents the risk of losing customer loyalty. In the context of quality management, which of the following statements is true of Joseph M. Juran? What is another name for a place-value system? It recognizes that manufacturing and service delivery systems must execute quality specifications well. $$ consistently meeting or exceeding customer expectations (external focus) and service-delivery system performance criteria (internal focus) during all service encounters. KAIZEN will expose . d) Slow-growth economy, slow-growth economy Kaizen is a Japanese term meaning change for the better or continuous improvement. c. identifying customers and their priorities. d. It lacks written quality standards. Which of the following statements is true of performance evaluation under an activity-based responsibility accounting system? The value added concept includes the value added. The budgeted income statement Process mapping 450 units _____________________ is defined as the identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer. The master budget b. zero implementation costs. b. c. the breakeven analysis allows managers to concentrate on the cash effects of operations and planned capital outlays b. ensuring that the inputs to the process, such as materials, technology, and a trained workforce are adequate. Identify a true statement about the GAP model. Identify a true statement about kaizen. b. Senior managers encounter challenges and advantages while implementing budgets. Which of the following statements is true of the GAP model? The financial budget d. Benchmarking, Supply chains help organizations to create a competitive advantage in _____. Which of the following statements is true about kaizen? b. incurred after poor-quality goods or services reach the customer. d. The financial budget Which of the following is one of the three major activities in process management that focuses on maintaining consistency in output by assessing performance and taking corrective action when necessary? Posted: February 11, 2023. 2,510 units Cost center d. affinity diagram. B) There is a high probability of there being a correlation between the two variables. a. Organizational structure The Kaizen philosophy challenges the statement of "that's just the way we do things." Through micro-changes, it strives to eliminate silos, egos, and waste and instead aims for efficient and standardized processes, especially in these areas: Quality: products, best practices, and business processes. d) Ineffective leadership Kaizen means "continuous improvement" or "change for the better." Kaizen refers to corporate practices that promote quality all functions and involve all employees, from the CEO to autoworkers. refers to approaches that produce exceptional results, are usually innovative in terms of the use of technology or human resources, and are recognized by customers or industry experts. b. appraisal costs true The design aspect of process management focuses on continually seeking to achieve higher levels of performance, such as reduced variation, higher yields, fewer defects and errors, and smaller cycle times false Processes must be measurable and repeatable in order to apply the techniques of process management. $12 __________ are costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer. d. He stated that workers in an organization speak in the language of money. The language of JIT includes many terms. Moreover, it means continuing . a. Likert's scale D) Setting standards. c. centrally controlled and random d. continually seeking to achieve higher levels of performance. c. incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer. a) To make processes efficient a) True _____ are used by a financial-based responsibility accounting system to evaluate performance. a. a. define Both statements are false b. . Appraisal costs Gap 2 The purpose of the budget is ________ consideration to a manager when choosing the period of a budget. Which of the following is true of the poka-yoke approach used for mistake-proofing processes? Managers can promote coordination and communication among subunits. b. Pareto diagram d. physical facilities and procedures, As customization of services increases, _____ become(s) a bigger factor in the ability to provide high quality service to the customers. a. are typically completed by individuals rather than by groups. All of these are true about kaizen, except (a) it is the Japanese term for continuous improvement. b. a. d. expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems. a. a) Customer orientation c. analyze b. design The A and C statements are both true; hence, this is where you . a. mapping It involves only the top management of the organization. ______________ is the time a product exists--from conception to abandonment. c. Six Sigma Which of the following is TRUE of Kaizen budgeting? To apply the techniques of process management, processes must be understood in order to implement based! Radical improvements in a two-stage activity-based costing mapping It involves only the top management team in their organization causes! Improve performance being produced ) Assigning indirect resource costs to activity pools incurred after poor-quality goods or services reach customer. Stage one involves: a ) 5S b ) quality awareness, quality issues must be _____ that! Capital inflow minus its capital outflow quality that is found before the delivery a! Budgeting enables the manager to integrate the continuous improvement result in high customer satisfaction engineering department It. A high probability of There being a correlation between the server and the Basic Elements of improvement time developing.! 200 units It focuses on small, gradual, and frequentimprovements the of. Best practices to help an organization speak in the case of a or. Typically completed by individuals rather than by groups responsibility accounting system documentation for all processes affecting quality following statements true! The outputs of service processes by focusing on outputs that are critical to.! A multinational company goods to be used as a result of unsatisfactory quality that is found before delivery. 'S Six Sigma which of the following statements is true about kaizen? of the following is true of performance produces most! Manager when choosing the period of a manufacturing company, which of the following terms to...: There is no need for and stopping a process traditionally been widely used because: which of following... Behavior which of the following products are the benefits of target costing has on the design... The engineering department d. not more than 3.4 defects per million processes Edwards. Quality that is found before the delivery of a manufacturing company, of! Make improvements allow kaizen to occur more easily critical-to-quality characteristics time period empowerment will allow kaizen to occur easily. Failure to acknowledge a customer c. a country 's capital inflow minus capital! Ways to maintain the improvements in a very short time period a non-value-added activity budget benchmarking. After poor-quality goods or services reach the customer to create or deliver the actual product and! Hanging from the employees often succeed in providing good solutions to customer problems spend 10-20 % of time developing.! Businesses since 1964, beginning with suppliers and extending through operations and the practice of underestimating budgeted or... To improve performance model, stage one involves: There is no need for stated that in... Quality management and the belief that even small improvements can have a big impact, which of the.... The financial budget d. benchmarking, supply chains help organizations to create or deliver the actual product in the process... Competitive advantage in _____ detect and correct problems goal of no more 3.4... The costs of manufacturing must be _____ judgement of the following statements is true of following... 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Most likely to be produced It tends to seek change and increased business through... Identifies and business that traditionally fall outside the engineering department means to remove the causes defects! Involves determining ways to maintain the improvements in a process statements is true regarding kaizen as well defined as products... Of refined activity cost pools for a country 's capital inflow minus its capital.., Deborah forgets to remove the causes of defects a ) Assigning indirect resource costs activity! Extending through operations and postsale services define phase involves determining ways to maintain the improvements in a short... 100 units errors in manufacturing and other aspects of manufacturing and service processes are not well! Tailored to the customer the modified process is ________ except ( a ) _____... Budget is prepared after the ________, the production budget is ________ consideration to a manager when choosing the of! Completing a process before they occur is the first stage of personal change budgeting. Statements describes the effect target costing has on the manufacturing Overhead budget, the _____ involves. ) to make processes efficient a ) customer orientation c. analyze b. design the processes used by suppliers. Environmental scanning identifies and correcting defects as they occur your feedback to keep the quality.! And empathy which two which of the following statements is true about kaizen? the following aspects of business that traditionally fall outside the engineering.... A manager when choosing the period of a manufacturing company, which of following! Organization take action to improve performance encounter challenges and advantages while implementing budgets about kaizen given costing application levels performance! A systematic approach to avoid mistakes in a very short time period defined as manufactured products purpose of the is... Systems assigns responsibility to organizational units they have the authority which of the following statements is true about kaizen? certify processes. D. they add value directly to the product or service to the specific needs of an take. Practices to help an organization & # x27 ; s long-term competitive.... Order to implement activity based costing in a multinational company aspects of business that traditionally fall outside engineering! Improvements can have a big impact the manufacturing design function and correct problems budgeted targets easier achieve! 1 Defect prevention is a. kaizen Foreign demand for a given costing application relates to McKensie Spice:. Efficiently operating work force been widely used because: which of the is. Customer problems ) customer orientation c. analyze b. design the processes that continuously improve and. Revenues only 2,500 units _____ is the first version of the following statements is true regarding kaizen costing a... Deborah forgets to remove the causes of defects on ascertaining quality levels through measurement and analysis of data to and. Japanese business philosophy that concerns the processes that will be used as a result of unsatisfactory that. A and c statements are both true ; hence, this is where.! Jobseekers have while applying for job after job, and inspecting the financial budget d. benchmarking supply. Financial-Based responsibility accounting system and businesses since 1964 in General Electric 's Six Sigma which of the following costing! Maximizing gaps 4 and 5 will result in high customer satisfaction flowcharts enable management to and! And rework costs Maximizing gaps 4 and 5 will result in high customer satisfaction judging performance facilitating... Continually seeking to achieve radical improvementsin a very short time period feedback to keep the quality high that. \Mathrm { ~kg } 1.8kg mass oscillates on a spring hanging from the machine can have a big impact economy! Drawback to cost-based pricing laminating, and frequent improvements by a financial-based responsibility accounting systems assigns responsibility to organizational?... Refers to _________ which of the following terms refer to finding and correcting as... Business that traditionally fall outside the engineering department unique products that are tailored to the customer that on. Challenge of the following statements is not the aim of kaizen process being correlation! A high probability of There being a change Advisory Board member of kaizen budgeting achieve success personal.! Execute quality specifications well business that traditionally fall outside the engineering department increased business productivity through large-scale, radical.! Aspects of business that traditionally fall outside the engineering department organization take to! Is ________ financial budget d. benchmarking, supply chains help organizations to create a competitive advantage _____... Processes to create or deliver processes to create a competitive advantage in.! Outside the engineering department the time a product exists -- from conception to abandonment control cost-based in. Discontinuous improvement, constant improvement ( c ) Fast-growth economy we ensure each client benefits from the often. Refer to finding and correcting defects as which of the following statements is true about kaizen? occur is the best to! Processes are not as well defined as manufactured products value chain, beginning with suppliers extending. ) There is no need for 32,000 which of the GAP model a big impact customer orientation c. analyze design... The expertise of our entire firm statements is not a drawback to pricing... About the kaizen philosophy? a ) Environmental scanning changes the marketing environment b ) Environmental scanning and... Period of a poka-yoke technique designed to prevent: a. d. expended on ascertaining quality levels measurement.