ACIS 2116 Chapter 3 Slides with Blanks

ACIS 2116 Chapter 3 Slides with Blanks - 1 ACIS 2116...

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Unformatted text preview: 1 ACIS 2116 Chapter Three Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows 2 Merchandising Firm vs. Manufacturing Firm Merchandisers . . . • Buy finished goods. • Sell finished goods. Manufacturers . . . • Buy raw materials. • Produce and sell finished goods. MegaLoMart 3 Balance Sheet Merchandiser Current assets Cash Receivables Prepaid Expenses Merchandise Inventory Manufacturer Current Assets ◆ Cash ◆ Receivables ◆ Prepaid Expenses ◆ Inventories Raw Materials Work in Process Finished Goods 4 Inventory • Raw Materials – used to make a product • Work in Process – partially complete products • Finished Goods – completed products awaiting sale 5 Service Firm Service Firm . . . • Perform a service for a customer Inventory is not significant 6 Manufacturer - Traditional • Similar machines grouped together. • Inventory “pushed” from area to area. • Inventory buffers maintained. • Inventory handled & moved a lot. • Difficult to switch to a different product (high setup time). 7 Lean Production and JIT • Lean production • Eliminate waste • Manage inventory • JIT • Starts with customer order • Products are “pulled” • Rely on dependable, quick suppliers 8 The Product The Product Direct Materials Direct Labor Manufacturing Overhead Manufacturing Costs 9 Cannot be traced directly to specific units produced. Manufacturing Overhead Examples: Indirect labor and indirect materials Examples: maintenance workers, janitors and security guards. Examples: lubricants and cleaning supplies used in the automobile assembly plant....
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This homework help was uploaded on 04/01/2008 for the course ACIS 2116 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.

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ACIS 2116 Chapter 3 Slides with Blanks - 1 ACIS 2116...

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