MULTIPLE CHOICE QUESTION

1. Internal failure costs are incurred

a. to prevent poor quality in the products or services being produced.

b. because products or services do not conform to requirements after being delivered to the customer.

c. to determine whether products and services are conforming to their requirements.

d. because products and services do not conform to specifications or customer needs prior to the product being shipped or the service being rendered to outside parties.

2 Lean manufacturing seeks to achieve all of the following except for

a. zero defects.

b. maximizing customer value.

c. zero inventories.

d. waiting.

3 When materials costs differ significantly among products in a value stream, the valuestream product cost is calculated by which of the following?

a. Unit Materials Cost + Value-Stream Costs/Units Shipped

b. Unit Materials Cost + Value-Stream Conversion Costs/Units Shipped

c. Value-Stream Costs/Units Produced

d. Value-Stream Costs/Units Shipped

4 A manufacturing cell within a value stream has three processes and the following associated processing times:

Drilling: 12 minutes

Inserting: 6 minutes

Finishing: 2 minutes

How many units can the cell produce per hour (on a continuous running basis)?

a. 10 units per hour

b. 3 units per hour

c. 5 units per hour

d. 30 units per hour

5 Which of the following is true regarding foreign trade zones?

a. They are pieces of land physically located in foreign countries that are subject to the laws of the United States.

b. They must be located near seaports.

c. Goods that enter a foreign trade zone are not subject to tariff until they leave the zone for destinations in the United States.

d. Goods sold in a foreign trade zone are not subject to U.S. income taxes.

e. All of these.

6 A manufacturing plant located in Mexico that processes imported materials and reexports them to the United States is called a(n)

a. maquiladora.

b. foreign trade zone.

c. joint venture.

d. exchange venture.

e. foreign transaction.

7 The following spot rates for $1 in terms of yen and pounds were in effect for June 1 and November 1.

June 1 November 1

Japanese yen.............115.0..........................118.0

British pound............0.699..........................0.650

Did the U.S. dollar appreciate or depreciate against these currencies between June 1 and

November 1?

Japanese Yen British Pound

a. appreciate...........................appreciate

b. appreciate...........................depreciate

c. depreciate...........................depreciate

d. depreciate...........................appreciate

e. Cannot tell from the information given

8 The premier credential for the forensic accountant is the

a. CPA.

b. CFE.

c. CMA.

d. CIA.

e. None of these.

9 Which of the following is not true of forensic accounting?

a. Many cases are adversarial in nature.

b. Excellent written and oral communications skills are required.

c. The forensic accountant must be able to explain basic accounting concepts to nonaccountants.

d. The forensic accountant is trained to determine the correct answer for each case.

e. The forensic accountant may earn specialized certification.