T F 1. Controllable costs result from a particular manager%u2019s action and

T F 1. Controllable costs result from a particular manager%u2019s action and

decisions.

T F 2. J.I.T. is a control mechanism for fixed assets.

T F 3. ABM is an information system that helps managers view the

organization as a collection of activities.

T F 4. Equivalent unit production is a key factor in calculating the number of

whole units produced in a period.

T F 5. Conversion costs are the combined cost of direct labor and

manufacturing overhead.

T F 6. Companies value customers based on sales and profits.

T F 7. J.I.T. philosophy required that all resources be acquired within a month

of actual products.

T F 8. Processing time is the actual amount of time working on a product.

T F 9. Moving time is the time moving a product out the door of a company.

T F 10. Queue time is the time a product spends waiting to be worked on once

it arrives at the next operations or department.

T F 11. A value added activity is one that adds or subtracts value to a product

or service as perceived by a customer.

T F 12. The supply chain leads from the suppliers of materials from which a

product is made to the final customer.

T F 13. A work cell is a production line that can perform all required operations

efficiently and continuously.

T F 14. Preventative maintenance of machinery is not important in operations

that employ J.I.T.

T F 15. Management accounting provides information for financial and non-

financial people in an organization.