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NEW QUESTION # 264
The question below is based on the following standard and actual data of a production order
Which of the following statements about variances is true?
Answer: B
Explanation:
The labor efficiency variance is the difference between the standard labor hours allowed for the actual output and the actual labor hours used, multiplied by the standard labor rate. In this case, the standard labor hours allowed for 100 pieces are 0.5 * 100 = 50 hours. The actual labor hours used are 48 hours. The standard labor rate is $10 per hour. Therefore, the labor efficiency variance = (50 - 48) * $10 = $20 favorable. This means that the actual labor hours used were less than the standard labor hours allowed, which indicates a higher labor efficiency12 References: 1: CPIM Part 2 - Section B - Module 2 - Session 2 - Variance Analysis 2:
CPIM Part 2 - Section B - Module 2 - Session 3 - Variance Analysis Example
NEW QUESTION # 265
Which of the following terms below BEST describes the measure of confidence that the security features, practices, procedures, and architecture of an information system accurately mediates and enforces security policy?
Answer: B
NEW QUESTION # 266
A security consultant is working with an organization to help evaluate a proposal received from a new managed security service provider. There are questions about the confidentiality and effectiveness of the provider's system over a period of time. Which of the following System And Organization Controls (SOC) report types should the consultant request from the provider?
Answer: B
NEW QUESTION # 267
Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?
Answer: A
Explanation:
Third-party logistics (3PL) services are external providers that handle various supply chain functions for a firm, such as transportation, warehousing, inventory management, and order fulfillment. By outsourcing these functions to a 3PL, a firm can reduce its investment in fixed assets, such as trucks, trailers, warehouses, and equipment. This can improve the firm's liquidity and return on assets ratios, as well as lower its depreciation and maintenance costs. However, usinga 3PL does not necessarily affect the firm's retained earnings, accounts receivable, or intangible assets, which are influenced by other factors, such as profitability, sales, and goodwill. References:
*Third-Party Logistics (3PL) Guide: Process, Resources, And Benefits
*3PLs, Explained: The Complete Guide to Third-Party Logistics
*Understanding 3PL: The Role of Third-Party Logistics in 2024
NEW QUESTION # 268
The primary reason for tracing a component with scheduling problems to Its master production schedule (MPS) item is to:
Answer: D
Explanation:
The primary reason for tracing a component with scheduling problems to its master production schedule (MPS) item is to determine if a customer order will be impacted. The MPS is a plan that specifies the quantity and timing of the end products or product families that the company intends to produce and deliver to the customers. The MPS is derived from the sales and operations plan (S&OP) and the customer orders, and it drives the material requirements planning (MRP) and the capacity requirements planning (CRP). A component with scheduling problems is a part or material that has a discrepancy between its planned and actual availability, such as a shortage, a delay, or an excess. Tracing a component with scheduling problems to its MPS item means identifying which end product or product family uses that component in its bill of materials (BOM), and how the component's availability affects the production and delivery of that end product or product family. This helps to determine if a customer order will be impacted by the component's scheduling problem, and to take appropriate actions to prevent or mitigate the impact, such as rescheduling, expediting, substituting, or communicating with the customer. The other options are not correct, as they are not the primary reason for tracing a component with scheduling problems to its MPS item, but rather possible actions or outcomes of the tracing process:
Revising the rough-cut capacity plan is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component's availability affects the capacity of the critical resources that are needed to produce the MPS item. Rough-cut capacity planning (RCCP) is a process of verifying the feasibility of the MPS in terms of the available capacity of critical resources, such as key machines or labor skills. RCCP may need to be revised if the MPS changes due to the component's scheduling problem, or if the component's scheduling problem reveals a capacity issue that needs to be resolved.
Rescheduling a related component on the shop floor is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component's availability affects the production sequence or priority of other components that are used in the same MPS item. Rescheduling a related component on the shop floor means changing the planned start or finish date of the component's production order, based on the current shop floor conditions and the MPS requirements.
Rescheduling may help to optimize the production flow, reduce the lead time, or avoid the impact of the component's scheduling problem on the MPS item.
Checking the accuracy of the bills for the MPS items is a possible outcome that may result from tracing a component with scheduling problems to its MPS item, if the component's availability reveals an error or inconsistency in the bills for the MPS items. Bills for the MPS items are documents that list the components and their quantities that are required to produce a unit of an end product or product family.
Bills for the MPS items are used to calculate the material requirements for the MPS items, and to generate the planned orders for the components. Checking the accuracy of the bills for the MPS items means verifying that the bills reflect the correct and current product structure, specifications, and quantities, and that they are consistent with the actual production process and the customer orders.
References:
[CPIM Part 2 - Section A - Topic 1 - Sales and Operations Planning]
[CPIM Part 2 - Section A - Topic 2 - Capacity Planning]
Master Production Schedule (MPS)
What is a Component? | Definition, Types, & Examples
Tracing a Component to Its MPS Item
Rough Cut Capacity Planning (RCCP)
[Rescheduling]
[Bill of Materials (BOM)]
NEW QUESTION # 269
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