134. Which one of the following does not appear on the balance sheet of a manufacturing company?

134.    Which one of the following does not appear on the balance sheet of a manufacturing company?

a.  Finished goods inventory

b.  Work in process inventory

c.  Cost of goods manufactured

d.  Raw materials inventory

Ans: c, LO: 7, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

135.    The equivalent of finished goods inventory for a merchandising firm is referred to as

a.  purchases.

b.  cost of goods purchased.

c.  inventory.

d.  raw materials inventory.

Ans: c, LO: 7, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

136.    How have many companies significantly lowered inventory levels and costs?

a.  They use activity-based costing.

b.  They utilize a balanced scorecard system.

c.  They have a just-in-time method.

d.  They focus on a total quality management system.

Ans: c, LO: 8, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

137.    What term describes all activities associated with providing a product or service?

a.  The manufacturing chain

b.  The product chain

c.  The supply chain

d.  The value chain

Ans: d, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: None, IMA: FSA

138.    Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

a.  Balanced scorecard

b.  Just-in-time inventory

c.  Activity-based costing

d.  Total-quality management

Ans: c, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: None, IMA: Performance Measurement

139.    What is "balanced" in the balanced scorecard approach?

a.  The number of products produced

b.  The emphasis on financial and non-financial performance measurements

c.  The amount of costs allocated to products

d.  The number of defects found on each product

Ans: b, LO: 8, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: None, IMA: Performance Measurement

140.    Which one of the following characteristics would likely be associated with a just-in-time inventory method?

a.  Ending inventory of work in process that would allow several production runs

b.  A backlog of inventory orders not yet shipped

c.  Minimal finished goods inventory on hand

d.  An understanding with customers that they may come to the showroom and select from inventory on hand

Ans: c, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: Project Management, IMA: Business Economics