FREE APICS Certified in Production and Inventory Management Questions and Answers
What kind of cost is accounted for by manufacturing overhead?
Manufacturing overhead includes various indirect expenses, such as factory rent, utilities, depreciation on manufacturing equipment, supplies, indirect labor costs, and supervision.
Which of the subsequent industrial processes results in the production of a single item or a small batch of items?
The industrial process that produces a single unit or a small batch of units is known as job shop manufacturing.
The following are related to the cost of goods sold in the income statement:
The cost of goods sold is connected to the revenue in the income statement. It represents the direct cost of producing the goods sold by a company.
Once a quality improvement program has been successfully implemented, the following costs are frequently the biggest costs of quality control:
The highest expense of controlling quality once a quality improvement program has been effectively implemented is often the cost of prevention. This includes the cost of designing and implementing processes, systems, and training programs to prevent defects and errors from occurring in the first place. The idea is to invest in prevention upfront to reduce the need for costly inspection, rework, and warranty claims down the line.
An assemble-to-order production system's master production schedule contains the following:
The master production schedule in an assemble-to-order production system includes subassemblies. This is because an assemble-to-order system involves creating final products from a combination of pre-manufactured subassemblies and components. The master production schedule (MPS) outlines the production plan for the subassemblies that will be needed to fulfill customer orders and maintain inventory levels.
An integrated supply chain's primary objective is best summed up by the following phrases:
An integrated supply chain aims to achieve an efficient flow of materials and information throughout the entire supply chain network, from the suppliers of raw materials to the end-users of the finished products. By integrating all aspects of the supply chain, including procurement, production, transportation, warehousing, and distribution, companies can improve their responsiveness to customer demands, reduce lead times, lower costs, and increase profitability. The ultimate goal is to create a seamless and agile supply chain that can quickly adapt to changes in demand, supply, and market conditions, and deliver high-quality products and services to customers in a timely and cost-effective manner.
Which of the following financial statements would include the cost of goods sold for an organization?
The income statement would contain a company's cost of goods sold. It is an important expense item that reflects the cost of producing or acquiring the goods sold by the company during a specific period of time. The cost of goods sold is typically deducted from the company's revenue to determine its gross profit.