Term
| What are the four basic activities in the production process? |
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Definition
1. Product Design
2. Planning and Scheduling
3. Production Operation
4. Cost accounting |
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Term
| What does AIS provide accurate and timely cost accounting information for? |
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Definition
1. Product Mix - what and how many
2. Product Pricing - Price the company has set
3. Resource allocation and planning - whether to make or buy product
4. Cost management |
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Term
| Two equations for Target Price? |
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Definition
1. Unit cost + (unit cost * Markup%)
2. ((Total FC+Total Profit)/# units produced) + unit VC |
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Term
| Objectives of Production Process? |
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Definition
1. Track purchases and sales of inventories (Raw Materials)
2. Monitor and control manufacturing costs
3. Control Inventory
4. Control and coordinate the production process
5. Provide input for budgets |
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Term
| What are the inputs of the production process? |
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Definition
| Materials requisition form, bill of materials, master production schedule, production order, job time card. |
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Term
| Define materials requisition form? |
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Definition
| Acquire needed raw materials (input) |
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Term
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Definition
| Detailed raw materials requirement for a product. (input) |
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Term
| Master production schedule |
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Definition
| how many units the organization needs to produce. (input) |
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Term
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Definition
| Shows the distribution of labor costs to specific jobs or production orders. (input) |
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Term
| What are the Outputs of the production process? |
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Definition
Financial statement information, Materials price list, periodic usage reports, inventory reconciliation reports, inventory status reports
production cost reports, manufacturing status reports |
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Term
| Define Financial Statement information? |
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Definition
| inventory and COGS (output) |
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Term
| Define Materials price list |
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Definition
| Show prices charged for raw materials (output) |
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Term
| Define Inventory reconciliation reports |
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Definition
| compare physical inventory results with book balances (output) |
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Term
| define periodic usage reports |
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Definition
| shows how various production departments are using raw materials (output) |
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Term
| Define Inventory status reports |
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Definition
| Allows purchasing and production managers to monitor inventory levels. (output) |
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Term
| Define production cost reports |
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Definition
| Calculate budget variances for production costs (output) |
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Term
| Define Manufacturing status reports |
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Definition
| Provide managers with information on various job statuses. (output) |
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Term
| Whats the reason for product design? |
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Definition
| customer needs for quality, durability, and functionality while simultaneously minimizing production costs. |
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Term
| What are two example of Planning Schedules? |
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Definition
| Manufacturing Resource Planning (MRP-II) and Lean Manufacturing (JIT system) |
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Term
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Definition
| Matches existing production capacity and raw materials requirements with forecasted sales demand |
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Term
| Lean Manufacturing what is its focus? |
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Definition
| On improving the ability to meet real-time customer demands. PRODUCTION FLEXIBILITY - done by reducing waste and improving product quality. |
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Term
| If demand for a company's product is predictable and the product has a long life cycle |
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Definition
| MRP-II approach may be justified |
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Term
| What are the two principle objectives of the cost accounting system? |
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Definition
1. Provide accurate cost data
2. Provide information for planning, controlling, and evaluating the performance of production process. |
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Term
| What are the types of cost accounting systems? |
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Definition
Job order costing
process costing
Activity-based costing
standard costing system
product costing systems |
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