6 under just in time costing the purchase of raw materials is recorded by debiting t 4307800

6) Under just-in-time costing, the purchase of raw materials is recorded by debiting the Raw Materials Inventory account.

7) A just-in-time costing system does not use the Finished Goods Inventory account; instead, it combines the Finished Goods Inventory account with the Work-in-Process Inventory account.

8) Under the just-in-time costing system, underallocated and overallocated conversion costs are treated just like underallocated and overallocated manufacturing overhead.

9) Just-in-time costing is also known as ________.

A) job costing

B) batch costing

C) backflush costing

D) process costing

10) ________ in just-in-time management systems is completed in self-contained work cells.

A) Selling

B) Production

C) Administration

D) Purchasing

11) The just-in-time management system is a(n) ________.

A) labor management system

B) overhead management system

C) inventory management system

D) debt management system

12) Which of the following statements is true of the just-in-time costing system?

A) It increases the need for suppliers to deliver raw materials on time.

B) It records summary journal entries before the units are purchased.

C) It results in increased inventory storage costs.

D) It increases the risk of the inventory becoming obsolete or unsalable.

13) Which of the following statements is true of just-in-time management systems?

A) It involves ordering raw materials in large quantities to obtain volume discounts.

B) It triggers production after the customer places an order.

C) Its successful implementation is independent of vendor relationships.

D) It contracts with suppliers to deliver large quantities of goods once a year.

14) Under the just-in-time management system, ________.

A) a company's storage costs increase

B) a company's inventory insurance costs increase

C) the floor space available for production increases

D) the risk of the inventory becoming obsolete increases

15) Which of the following triggers manufacturing under the just-in-time management system?

A) increased purchase

B) consumer demand

C) government pressure

D) budgeted profit