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– CHAPTER 12 – MULTIPLE CHOICE 29.Capital or investment processes: A.is a regular and frequent event. B.only requires the specific approval of someone such as a senior accountant. C.requires the specific approval of top management or board of directors. D.can be considered revenue since it results in cash inflows. 30.Capital or investment processes: A.is a regular and.
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138.Why would perpetual inventory records be preferable to periodic inventory records in a manufacturing company? 139.Which three activities in the conversion process should require specific authorization before they are begun? 140.Why is it important to separate the functions of inventory control and the production stations? What could go wrong if these functions.
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– CHAPTER 11 – MULTIPLE CHOICE 28. A company’s conversion processes includes all of the following except: A.materials. B.office supplies. C.labor. D.overhead 29. A company must have systems in place to accomplish all of the following except: A.capture data. B.vocalize data. C.record data. D.summarize data. 30. The conversion process is initiated when the company recognizes: A.the receipt of raw materials. B.the shipment of.
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139. Why is batch processing well-suited to payroll processes?  140. What are the advantages of automated time keeping such as bar code readers or ID badges that are swiped through a reader?  141. What are the advantages of outsourcing payroll?  142. Fixed assets are purchased and retired frequently.  Given this frequent.
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153.Describe the purpose of each of the following cost accounting records or reports: •Work-in-process and finished goods inventory accounts •Bill of materials •Variance reports •Routing slips 154.Describe how a cost accountant would cancel a production order upon completion of the related product. Why is this important? 155.When taking a physical inventory count at a typical manufacturing.
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167. Using an Internet search engine, search for the phrase “fixed asset software” (be sure to include the quotation marks).  Examine the results to find companies that sell fixed asset software.  List and explain some of the features of fixed asset software that these companies use as selling points for their.
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48. The component of the logistics function that directs the focus of operations is the: A.operations component. B.resource management component. C.planning component. D.the sales component. 49. The planning component of the logistics function has all of the following elements except: A.maintenance and control. B.engineering. C.scheduling. D.capital budgeting. 50. The resource management component of the logistics function has all of the.
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- CHAPTER 11 – END OF CHAPTER QUESTIONS: 108.Manufacturing has changed in recent years as a result of each of the following factors except: A.globalization B.technological advances C.increased competition D.lack of economic prosperity 109.The term conversion processes is often used synonymously with A.operations. B.production. C.manufacturing. D.All of the above. 110.Which of the following activities is not part of the planning component.
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144. Explain why categorizing fixed asset expenditures as expenses or capital assets are important. 145. What are some of the practical characteristics of fixed assets that complicate the calculation of depreciation?  146. What is different about the nature of fixed asset purchasing that makes authorization controls important?  147. Explain the necessity of supervision.
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128.What are the two types of documents or reports are likely to trigger the conversion process? 129.What are the three primary components of logistics? 130.What types of information must be taken into consideration when scheduling production? 131.Differentiate between a routing slip and an inventory status report. 132.What are the conversion responsibilities of the maintenance.
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99.Unethical or fraudulent behavior 1.can occur in administrative processing of an organization. 2.can occur in the reporting functions of an organization. 3.are much more likely to be initiated by management. 4.are much more likely to be initiated by employees. A.Only 1, 2, and 3 are correct. B.Only 1, 2, and 4 are correct. C.Only 1 and 3.
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- CHAPTER 11 - PROBLEMS 160.Using an Internet search engine, search for the terms “CAD” _“industrial robots.” Identify a company (name and location) that provides manufacturing automation by using robotics. Describe some of the robotic operations that are featured on the company’s website. 162.Explain how the over-production of inventories can be seen.
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– CHAPTER 10 – PROBLEMS 165. Explain the process of approval of purchases for fixed assets.  How does this process differ from that of purchasing raw materials?  166. Using an Internet search engine, search for the phrase “biometric time recording” (be sure to include the quotation marks).  Based on your search results, describe.
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69.Closing entries: A.close all of the general ledger accounts. B.end the fiscal period. C.close all of the subsidiary ledger accounts. D.are journalized in the subsidiary ledgers. 70.Today’s automated accounting process: A.is built on a structure independent of manual accounting. B.does not require special journals or subsidiary ledgers. C.is built on an operational structure similar to manual accounting. D.eliminate errors.
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11. The final hub in the logistics function is sales. 12. Standard costs are expected costs based on projections of a product’s required resources. 13. Standard costs include direct materials, direct labor, and overhead. 14. Perpetual inventory systems involve updating the inventory and cost of sales accounts only at the end of the period. 15..
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21. MRP stands for Management Resource Projections. 22. Just-in-time (JIT) production systems are concerned with minimizing or eliminating inventory levels of all inventory items. 23. Earnings management is the act of misstating financial information in order to improve financial statement results. 24. Absorption costing involves the inclusion of both variable and fixed costs in the.
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88. Physical controls include all but: A.fences and alarm systems. B.security guards. C.high tech security tools. D.Each of the answers, A, B, and C are correct. 89. Physical inventory counts should only include: A.finished goods. B.finished goods and raw materials. C.finished goods and work-in-process. D.raw materials, work-in-process, and finished goods. 90. When there is a difference between the inventory records.
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89.Financial statements: A.are generated from the values of the special journals and subsidiary ledgers. B.are presented with complete chart of account detail. C.may contain condensed data from the general ledger. D.show units in inventory and dollar value of those units. 90.The four general purpose financial statements: A.are generated at the end of each month. B.are generated at.
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121.The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the: A.Authorization of transactions from the custody of related assets. B.Operational responsibility from the record keeping responsibility. C.Human resources function from the controllership function. D.Administrative controls from the internal accounting controls. 122.Which of the following departments or positions most.
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– CHAPTER 11– TRUE / FALSE 1. Because of the manpower and computer programmers required to control robotics, robotics has had little influence manufacturing. 2. Resources required in the conversion process include materials, labor, overhead, and fixed assets. 3. Even if a firm is a service or sales firm it may conduct some sort of.
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69.Types of fraud that may occur in the payroll function include all of the following, except: A.Overstated hours B.Incorrectly computed tax withholdings C.False claims of sick leave D.Pay claims made by ghost employees 70.Which of the following correctly states a reconciliation process to be completed related to payroll? A.Time sheets reconciled to the payroll register. B.Payroll register.
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78. Variances: A.represent the differences between actual costs and the standard costs applied. B.represent the difference between design specifications and production results. C.represent flaws in the production results. D.Each of the answers, A, B, and C are correct. 79. Variances: A.are only investigated if they are unfavorable. B.are always investigated. C.will always result in the improvement of the.
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49.Investment processes: A.issue stock. B.issue bonds. C.purchase of fixed assets. D.invest excess funds. 50.The _____________ of a corporation has the responsibility for making investment decision. A.board of directors. B.chief financial officer. C.treasurer. D.president/CEO. 51.The _____________ of a corporation usually has physical custody of securities held as investments. A.treasurer. B.president/CEO. C.board of directors. D.chief financial officer. 52.Corporations with complex IT systems: A.may automate their investment process. B.still handle.
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79.An electronic payroll time keeping device that collects time and attendance data when employees enter their time sheets is called: A.Timekeeper B.Paymaster C.Electronic time clock D.Badge readers 80.An electronic payroll time keeping device that collects data when employee identification badges are swiped through an electronic reader are called: A.Timekeeper B.Badge reader C.Paymaster D.Electronic time clock 81.In order to smooth out.
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- CHAPTER 11 - SHORT ANSWER QUESTIONS 123.What are the three resources that an organization must have to conduct a conversion (or transformation) process? 124.Do conversion processes occur in manufacturing companies only? Why or why not? 125Why are conversion activities typically considered routine data processes? 126.Differentiate between a bill of materials and an operations.
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– CHAPTER 10 – SHORT ESSAY 154. Describe the type of information that a human resources department should maintain for each employee.  155. The calculation of gross and net pay can be a complicated process.  Explain the items that complicate payroll calculations. 156. Explain how duties are segregated in payroll.  Specifically, who or.
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38. The process that plans the timing for production activities is referred to as: A.operations list. B.bill of materials. C.scheduling. D.capital budgeting. 39. The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the: A.production schedule. B.production orders. C.maintenance and control process. D.human resources process. 40. The process that is concerned with maintaining.
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- CHAPTER 10 - MULTIPLE CHOICE 49.Routine business transactions would include which of the following? A.Purchase of merchandise inventory. B.Payment of principal on a note. C.Purchase of fixed asset. D.Paying wages and salaries to employees. 50.This type of transaction is one that a business encounters on a regular, recurring basis.  The volume of the transactions is.
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59.Personnel records will typically include all of the following, except: A.Documentation related to the initial hiring B.Personal information, such as the employee address C.Medical history subsequent to hiring D.Social security number 60.Each of the following items would likely be found in an employee’s personnel records related to the initial hiring, except: A.Employment application B.Recommendation letters C.Background investigation results D.Overtime.
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39.Raw material events can be found in which two processes? A.1) Revenue and return processes, systems & controls and 2) expenditures and return processes, systems & controls. B.1) Expenditures and return processes, systems & controls and 2) conversion processes, systems & controls. C.1) Conversion processes, systems & controls and 2) Administrative processes, systems.
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– CHAPTER 12 – TRUE / FALSE 1.The sale of bonds should be considered a regular, recurring process since these types of transactions are recorded in the general ledger. 2.Administrative processes are transactions and activities that either are specifically authorized by top managers or are used by managers to perform administrative functions. 3.Not.
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59.Select the correct statement from the following. A.To review purchases from a vendor inspect the purchases journal, to review payments to a vendor inspect the cash receipts journal. B.To review purchases from a vendor and review payments to a vendor inspect the cash disbursements journal. C.To review the purchases from a vendor inspect.
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– CHAPTER 10 – SHORT ANSWER QUESTIONS 129. Sales and inventory purchases are routine processes that occur nearly every day in a business. How are these routine processes different from payroll or fixed asset processes?  130. Even though payroll and fixed asset processes may not be as routine as revenue processes, why are.
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89.A detailed listing of the company’s fixed assets, divided into categories consistent with the general ledger accounts is called a: A.Fixed Asset Journal B.Fixed Asset Subsidiary Ledger C.Fixed Asset Schedule D.Fixed Asset Budget 90.This phase of the fixed asset processes relates to those required to maintain accurate and up-to-date records regarding all fixed assets throughout.
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133.What is the purpose of an inventory status report? 134.What is the overall goal of the inventory control department? 135.What is the purpose of the quality control department? 136.What is the purpose of determining standard costs? 137.What should be done when unfavorable variances are discovered? .
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79.Segregation of duties: A.remains unchanged between computerized and manual accounting. B.may be more difficult in less complex computerized accounting systems. C.is not a factor with computerized accounting systems. D.is not a factor with manual accounting systems. 80.When transactions are posted in a computerized accounting system: A.the user must post all transactions awaiting in the module. B.segregation of.
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168. Read the article at this link: http://www.fixedassetinfo.com/articles/adventures1.asp.  Describe why the scenario described is unethical.  Also, list controls or other steps that management could have taken to prevent or detect this scenario.  169. Using an Internet search engine, search for the terms “Patti Dale” and theft (be sure to include the quotation marks.
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143.When IT systems are used in conversion processes, what are some of the resulting advantages to the organization? 144.How can programmed controls within the IT system for conversion processes enhance internal controls? 145.What is the difference between CAD, CAM, and CIM? 146.What is the difference between MRP, MRP-II, and ERP? 147.How can conversion processes.
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– CHAPTER 10 – END OF CHAPTER QUESTIONS: 111.Which of the following statements about payroll and fixed asset processes is true? A.Both have only routine processes B.Both have only non-routine processes C.Both have routine and non-routine processes D.Payroll has only routine processes, while fixed assets has only non-routine processes 112.For a given pay period, the complete.
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11.Business processes in an organization do not include events that are accounting transactions. 12.Subsidiary ledgers maintain the detail information regarding routine transactions, with an account established for each entity. 13.Special journals are journals that are established to record the transactions of specific customers and vendors. 14.In the case of a manual accounting system,.
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158. Explain the ways in which electronic transfer of funds can improve payroll processes.  159. Explain the kinds of information that must be maintained in fixed asset records during the asset continuance phase.  160. The authorization to purchase fixed assets should include investment analysis.  Explain the two parts of investment analysis.  161..
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41.For most companies, fixed asset acquisitions are considered to be routine processes. 42.One area where earnings management may be prevalent due to the judgmental nature of the underlying data is with fixed assets. 43.Earnings management related to fixed assets would occur when reducing expenses by decreasing the useful life of the fixed.
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21.Service firm internal reports are more likely to focus on sales and the status of projects. 22.Unethical and fraudulent behaviors are much more likely to be initiated by employees, not .management. 23.One of the reasons that management, not employees, initiate more unethical and fraudulent activities are that employees do not have access.
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68. Rework refers to: A.generating a better quote for a customer. B.overhaul of a manufacturing machine. C.additional procedures to bring a product up to specifications. D.parts that are beyond repair at any cost. 69. The final hub in the logistics function which involves a follow-up to production, where the products are inspected before they are moved.
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99.The security of assets and documents would include all of the following, except: A.Supervisors need to make certain that the assets are being used for their intended purpose. B.Designated members of management should be assigned responsibility for the disposal of any assets C.Maintaining adequate insurance coverage D.Electronic controls are needed to control access to.
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98. Select the true statement. A.Computer-aided manufacturing (CAM) requires computer-aided design. B.Computer-aided design is always two dimensional. C.Computer-aided design may be three dimensional. D.Computer-aided design requires additional manpower during assembly. 99. Just-in-time (JIT) production systems: A.require close communications with the engineering department. B.do not require close communications with vendors. C.require closely controlled inventory levels. D.do not require additional monitoring. 100..
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58. Production orders: A.outline the specific timing required for sales orders. B.authorize production activities for a particular need or order. C.are forecasts of needs based on known and anticipated sales. D.are issued by the engineering department to correct product deficiency issues. 59. A production schedule: A.does not contain requirements due to sales forecasts. B.does not contain information.
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