Chapter 14 part 1

Question 1

Bills of materials

Answer 1

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

Question 2

Operations list

Answer 2

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

Question 3

Manufacturing resource planning (MRP-ll)

Answer 3

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

Question 4

Lean manufacturing

Answer 4

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

Question 5

Master production schedule (MPS)

Answer 5

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

Question 6

Production order

Answer 6

authorizes the manufacture of a specified quantity of a particular product

Question 7

Material requisition

Answer 7

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

Question 8

Computer-integrated manufacturing (CIM)

Answer 8

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

Question 9

Request for proposal (RFP)

Answer 9

specifies the desired properties of the assets

Question 10

Job-order costing

Answer 10

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

Question 11

Process costing

Answer 11

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

Question 12

Manufacturing overhead

Answer 12

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

Question 13

Activity based costing

Answer 13

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

Question 14

Cost driver

Answer 14

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

Question 15

Quality control costs can be divided in four areas

Answer 15

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