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ACTG 2P21 S01 June 28 2010

ACTG 2P21 S01 June 28 2010 - ACTG 2P21 S01 Check out IDEFO...

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ACTG 2P21 S01 June 28 2010 Check out IDEFO Diagram 3.1 diagram on http://wapedia .mobi/en/IDEF There are some really picky ways to build diagrams to show really complex processes. This is often a first step in a process analysis. This is not functional decomposition, it is object decomposition. Problem 10.33 a. Receiving Purchased Parts gets 6/12*500 000 = \$250 000 Move Raw Materials gets 3/12*500 000 = \$125 000 Receiving Raw Materials gets 3/12*500 000 = \$125 000 Consider what units are we going to count for Receiving Raw Materials? Number of Inbound Shipments of Raw Materials Last year we got 10 000 shipments. This is the activity driver. We want a cost per inbound shipment. So take 125000/10000= 12.50 \$ per inbound shipment of raw material For moving RM to production our units will be number of production runs. We did 5000 runs so 25 \$ per production run For receiving purchased parts the driver will be number of inbound shipments of purchased parts. So 10\$ per inbound shipment of purchased parts.

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