Mapping a Process Understanding y g your p processes Why map your process? The flowcharts in procedures and quality manual show how the process should be. Process mapping is the detailed be mapping of the real process. Process maps: • Bring clarity to complex processes • Highlight non-value adding activities • Start the process of thinking about improvements Versions of a map Any Process Has At Least Three Versions What You THINK It Is What It ACTUALLY Is Hidden work What it SHOULD
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Review Notes (Chap 3 to Chap 6) 1. Important Concepts: Cost Drivers and Cost Pools. A cost driver is any factor that has the effect of changing the level of total cost. In cost leadership, managing cost drivers is essential. A firm incurs a cost when it uses a resource for some purpose. Often costs are collected into meaningful groups called cost pools. Since individual costs can be group in several different ways, cost pools can be defined in several different ways as well (by cost type
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FINANCE –EXAM 3 1. The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him: What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003? Top of Form $ 110,000 $ 150,000 $ 170,000 $ 230,000 2. A customer
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The demand is the most important thing to determine in this simulation. Decisions of purchasing more equipment, setting reorder points and quantity were based on the groups demand forecasts made prior to all other decisions. We first determined what the demand was from the customer orders performed in the first 57 days of production. Plotting out the information we believed, based on the first 57 days mean that the average customer order would be approximately 8.5 per day. Day | 50 | 100 |
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1 Cost of Goods Available for Sales FIFO Amount Units Cost of Goods Sold 26,400.00 740 Endng Inventory 33,040.00 200 59,440.00 940 LIFO Amount Units Cost of Goods Sold 24,000.00 740 Endng Inventory 35,440.00 200 59,440.00 940 Specific Identification Amount Units Cost of Goods Sold
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CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES Review of related literature and studies were conducted which was found to have a great significance to the study are selected and are herein summarized. Foreign Literature One of the biggest challenges of an enterprise is to maintain the appropriate inventories and control its cost of sales. One businessman states that success in business is more than good products; success depends on assigning and monitoring costs of inventory and applying
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Asset Valuation Introduction The intent of this paper is to describe to the CEO Team B’s recommendation for reporting and valuing assets. Included in this paper is a synopsis of the company’s business plan and the related inventory control and capitalization policy. The authors’ of this paper will also justify why each policy was chosen and evaluate how the policies assists our business to meet its goals. Finally, alternative methods will be discussed with regard to why they were not chosen
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--Future value of annuity due = (1+r) * P(((1+r)^n - 1)/r) --Bonds: Dr. Cash, Cr. Discount, Cr. Bonds Payable (par value) First entry for first payment of interest: Dr. Interest Expense, Cr. Cash, Cr. Discount on bonds payable --Cash: coin, currency, available funds on deposit at bank, money order, certified checks, cashier’s checks, personal checks, bank drafts, and saving accounts. Inclunding Cash equivalents: T-bill, commercial paper, money mkt funds. Restricted: plant expansion, retirement
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Reed’s Clothier Case Study FIN/370 November 02, 2011 The Reed’s Clothier Case Study Reed Clothier Case is a family owned and operated business that was established in 1934. Jim Reed, who is the founder of the establishment, is going through some financial difficulties. The first Virginia National Bank would not extend their line of credit, they also notified Jim on an overdue payment of $130,000, which needed to be paid within a month. Reed had made a choice to safe the business
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the December 7 purchase and 7 are from the December 14 purchase. Trader uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. a) FIFO |Date |Goods Purchased |Cost of Goods Sold |Inventory Balance | |12/7 |10 @ $6= $60
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