ACCTMIS 3600 Exam 3 Questions and Answers Latest Update 2025-2026
The production cycle is a recurring set of ___ and ____associated with the manufacture of products -
AnswersBusiness activities and related information processing operations
What are the manufacturing control objectives? (3) - AnswersSupport decision making with impactful
cost information
Safeguard assets
Support optimizing of manufacturing processes
What business activities are performed in the production cycle? (4) - AnswersProduct design
Planning and scheduling
Production operations
Cost accounting
What production cycle activity are accountants primarily involved in? - AnswersCost accounting
True or False: Accountants are primarily involved in cost accounting but must understand the other
processes well enough to design an AIS that supports these activities - AnswersTrue
What key documents are produced/used in product design? (3) - AnswersBill of materials
Operations List
Labor standards
Specifies the part number, description and quantity of each component to be used in a finished product
- AnswersBill of materials
Lists the sequence of steps required to produce each product, including the equipment needed and the
amount of time required - AnswersOperations List
Specifies the required labor for each step in the process - AnswersLabor standards
At what stage of the production cycle are 65-80% of costs determined? - AnswersProduct design
At this stage, AIS need to measure and collect needed data to minimize costs - AnswersProduct design
What is the objective of the planning and scheduling activity of the production cycle? - AnswersDevelop
a production plan that meets existing orders, anticipates shorter-term demand while still minimizing
inventories of both raw materials and finished goods, and minimizes costs (maximizes efficient use of
resources)
What are the 2 production planning methods? - AnswersManufacturing Resource Planning (MRP)
, Lean Manufacturing
Seeks to balance existing production capacity and raw materials needs to meet forecasted sales
demands
Ofter referred as push manufacturing bc goods are produced in expectation of customer demand
An extension of MRP inventory control systems - AnswersMRP
An extension of the principles of JIT inventory systems
Seeks to minimize/eliminate inventories of raw materials, WIP and FG
Theoretically produces only in response to customer orders, but in reality, there are short-run
production plans (allowing suppliers to plan their production schedules to make deliveries as needed)
Referred to as pull manufacturing bc goods are produced in response to customer demand -
AnswersLean manufacturing
Both MRP and lean manufacturing ___ - AnswersPlan production in advance
Develops plans up to 12 months ahead - AnswersMRP
Uses shorter planning horizons - AnswersLean manufacturing
More appropriate for products with predictable demand and a long life cycley - AnswersMRP
More appropriate for products with unpredictable demand, short life cycles, and frequent markdowns
of excess inventory - AnswersLean manufacturing
What's a key document produced in planning and scheduling? - AnswersMaster production schedule
Specifies how much product to produce during the period and when production should occur. It is used
to determine if raw materials should be purchased - AnswersMaster Production Schedule (MPS)
Assigns specific resources (ppl) needed to execute the MPS - AnswersLabor schedule
What are the other key documents prepared/used to manage the flow of raw materials, parts, etc
(produced by the planning and scheduling activity)? (3) - AnswersProduction Orders
The production cycle is a recurring set of ___ and ____associated with the manufacture of products -
AnswersBusiness activities and related information processing operations
What are the manufacturing control objectives? (3) - AnswersSupport decision making with impactful
cost information
Safeguard assets
Support optimizing of manufacturing processes
What business activities are performed in the production cycle? (4) - AnswersProduct design
Planning and scheduling
Production operations
Cost accounting
What production cycle activity are accountants primarily involved in? - AnswersCost accounting
True or False: Accountants are primarily involved in cost accounting but must understand the other
processes well enough to design an AIS that supports these activities - AnswersTrue
What key documents are produced/used in product design? (3) - AnswersBill of materials
Operations List
Labor standards
Specifies the part number, description and quantity of each component to be used in a finished product
- AnswersBill of materials
Lists the sequence of steps required to produce each product, including the equipment needed and the
amount of time required - AnswersOperations List
Specifies the required labor for each step in the process - AnswersLabor standards
At what stage of the production cycle are 65-80% of costs determined? - AnswersProduct design
At this stage, AIS need to measure and collect needed data to minimize costs - AnswersProduct design
What is the objective of the planning and scheduling activity of the production cycle? - AnswersDevelop
a production plan that meets existing orders, anticipates shorter-term demand while still minimizing
inventories of both raw materials and finished goods, and minimizes costs (maximizes efficient use of
resources)
What are the 2 production planning methods? - AnswersManufacturing Resource Planning (MRP)
, Lean Manufacturing
Seeks to balance existing production capacity and raw materials needs to meet forecasted sales
demands
Ofter referred as push manufacturing bc goods are produced in expectation of customer demand
An extension of MRP inventory control systems - AnswersMRP
An extension of the principles of JIT inventory systems
Seeks to minimize/eliminate inventories of raw materials, WIP and FG
Theoretically produces only in response to customer orders, but in reality, there are short-run
production plans (allowing suppliers to plan their production schedules to make deliveries as needed)
Referred to as pull manufacturing bc goods are produced in response to customer demand -
AnswersLean manufacturing
Both MRP and lean manufacturing ___ - AnswersPlan production in advance
Develops plans up to 12 months ahead - AnswersMRP
Uses shorter planning horizons - AnswersLean manufacturing
More appropriate for products with predictable demand and a long life cycley - AnswersMRP
More appropriate for products with unpredictable demand, short life cycles, and frequent markdowns
of excess inventory - AnswersLean manufacturing
What's a key document produced in planning and scheduling? - AnswersMaster production schedule
Specifies how much product to produce during the period and when production should occur. It is used
to determine if raw materials should be purchased - AnswersMaster Production Schedule (MPS)
Assigns specific resources (ppl) needed to execute the MPS - AnswersLabor schedule
What are the other key documents prepared/used to manage the flow of raw materials, parts, etc
(produced by the planning and scheduling activity)? (3) - AnswersProduction Orders
