Exam question 1 In a TOM environment, external benchmarking is preferred to standard costing as a performance measurement technique because of which of the following? O Standard costs quickly become obsolete, O TOM emphasises continuous improvement and reference to a pre-determined internal standard gives no incentive to improve. O ATOM places an emphasis on employee empowerment, and the concept of a standard cost is alien to this. O AThe use of standard costs is only possible in a traditional mass-production industry.Exam question 2 Quality costs are classified into four categories. Which of the following is not one of these categories? O Prevention costs. Appraisal costs. Failure costs (internal and external). O Production costs.Exam question 3 Into which quality cost category can quality audits be classified? O Prevention costs. O Appraisal costs. Failure costs (internal and external). O Production costs.Exam question 4 Into which quality cost category can reliability studies be classified? Prevention costs. O Appraisal costs. O Failure costs (internal and external). O Production costs.Exam question 5 Which of the following is a financial measure on which TOM focuses? O Lost revenue from customer returns. O Number of customer complaints. O Number of defectives supplied by suppliers. O Time taken to respond to customer requests.Exam question 6 Which of the following is a change that would likely be experienced by implementing JIT? O Inventory record keeping will become more complex. Current assets will increase. O Marginal profits will need to be reconciled to absorption costing profits. O Liquidity will improve.Exam question 7 Which of the following is not a Kaizen costing technique? O Cost reduction targets are set and applied monthly. O Continuous improvement is implemented during the year to attain forget profits or to reduce the gap between target profit and estimated profit. ) Practitioners' investigation and response occurs when standards are not met. O Cost variance analysis involves target costs and actual costs reduction amounts.Exam question 8 Throughput per unit Product time on the bottleneck resource Cost per factory hour O Throughput accounting ratio Return per factory hour O ThroughputExam question 9 Which of the following statements concerning business process re-engineering (BPR) is false? O) The continuous improvement philosophy aligns with the concept underlying BPR. () BPR is concerned with making for -reaching one-off changes to improve operations or processes. Q) BPR focuses on amending existing processes, streamlining processes that are already in place. O A stage normally recognised in any BPR project is to understand and measure the existing processes so that a baseline against which to measure improvement is set.Exam question 10 A significant trend in recent years has been for organisations and government bodies to concentrate on their core competencies whilst outsourcing major non-core functions to specialised, efficient service providers. Which of the following is not an advantage of outsourcing? Greater flexibility. Lower investment risk O Economies of scale and scope to use integration. O Improved cash flow.Exam question 11 Which of the following terms describes a system whose objective it is to produce or procure products or components as they are required by a customer or for use, rather than for inventory? O JIT. O TOM. O Kaizen O Business process improvement.Exam question 12 An accountant whose goal is to increase throughput would be least concerned with which of the following? O Bottlenecks. O Sales revenue. O Direct material cost. O Fixed overhead costs.Exam question 13 For purposes of throughput accounting, which of the following costs is not deemed to be fixed? O Labour costs. O Direct material costs. Variable overhead costs. O Quality costs