Chapter 14 part 1 Flashcards Preview

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Flashcards in Chapter 14 part 1 Deck (15)
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1
Q

Bills of materials

A

specifies the part number, description, and quantity of each component used in a finished product

2
Q

Operations list

A

specifies the sequence of steps to follow in making the product, which equipment to use , and how long each steps should take

3
Q

Manufacturing resource planning (MRP-ll)

A

is an extension of materials resources planning that seeks to balance existing production capacity and raw materials needs to meet forecasted sales demands

4
Q

Lean manufacturing

A

extends the principles of just-in-time inventory system to the entire production process. The goal is to minimize or eliminate inventories of raw materials, work in process, and finished goods

5
Q

Master production schedule (MPS)

A

specifies how much of each product is to be produced during the planning period and when that production should occur

6
Q

Production order

A

authorizes the manufacture of a specified quantity of a particular product

7
Q

Material requisition

A

authorizes the removal of the necessary quant it of raw materials from the storeroom to the factory location where they will be used

8
Q

Computer-integrated manufacturing (CIM)

A

using various forms of information technology in the production process, such as robots and computer-controlled machinery

9
Q

Request for proposal (RFP)

A

specifies the desired properties of the assets

10
Q

Job-order costing

A

assigns costs to specifies production batches, or jobs, and is used when the product or service being sold consist of discretely identifiable items

11
Q

Process costing

A

assigns costs to each process, or work center, in the production cycle, and then calculates the average cost for all unit produced

12
Q

Manufacturing overhead

A

manufacturing costs that are not economically feasible to trace directly to specific jobs or processes

13
Q

Activity based costing

A

refine and improve cost allocations under both job-order and process cost system

14
Q

Cost driver

A

anything that has a cause-and-effect relationship on costs

15
Q

Quality control costs can be divided in four areas

A
  1. prevention costs: associated with changes to production processes designed to reduce the product defeat rate
  2. inspection costs: associated with testing to ensure that products meet quality standards
  3. internal failure costs: associated with reworking, or scrapping, products identified as being defect prior to sale
  4. external failure costs: associated to defective product that are sold to customers