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IMANET Exam CMA Topic 4 Question 62 Discussion

Actual exam question for IMANET's CMA exam
Question #: 62
Topic #: 4
[All CMA Questions]

The effectiveness of a JIT system is often facilitated by the elimination of some commen forms of internal control.the elimination of which internal control is usually acceptable with a JIT system?

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Suggested Answer: C

Decentralization results in greater speed in making operating decisions because they are made by lower-level managers instead of being referred to top management. The quality of operating decisions should also be enhanced, assuming proper training of managers, because those closest to the problems should be the most knowledgeable about them.


by James at Dec 07, 2022, 12:11 AM

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Trinidad
15 days ago
Locked doors on production areas? That's like asking the wolves to guard the henhouse. Unless you want your inventory to 'disappear', I'd say that's the way to go.
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Keneth
18 days ago
Voucher approval prior to paying accounts payable? Nah, that's just good financial hygiene. You don't want to be paying bills willy-nilly, even in a JIT system. I'm picking B.
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Franklyn
2 days ago
I agree, having voucher approval is important for financial control.
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Anabel
29 days ago
Oh man, two signatures on large checks? That's just asking for trouble. Talk about bureaucratic red tape! I'm going with option C on this one.
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Britt
1 months ago
I'm not too sure about this one. Prepation of hard copy receiving reports seems like a pretty standard internal control. Eliminating that would be a risky move, even in a JIT system.
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Rory
13 days ago
B) Voucher approval prior to paying accounts payable.
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Trevor
16 days ago
A) Prepation of hard copy receiving reports.
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Berry
2 months ago
Hmm, the elimination of locked doors on production areas seems like the most reasonable option here. It aligns with the 'just-in-time' philosophy of minimizing waste and maximizing efficiency.
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Jonell
8 days ago
C) Two signatures required on large cheaks.
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Jennie
9 days ago
I agree, eliminating locked doors on production areas makes sense for a JIT system.
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Lisha
12 days ago
D) Locked doors on production areas.
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Cecilia
13 days ago
C) Two signatures required on large cheaks.
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Lisbeth
15 days ago
B) Voucher approval priot to paying accounts payable.
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Leonie
1 months ago
A) Prepation of hard copy receiving reports.
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Gerry
2 months ago
But what about the need for accuracy and control? Maybe B) Voucher approval prior to paying accounts payable should still be in place.
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Shaun
2 months ago
I agree with Brigette. With JIT, we need to streamline processes and reduce paperwork.
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Brigette
2 months ago
I think the elimination of A) Preparation of hard copy receiving reports is acceptable with a JIT system.
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