Chapter 18 A, continued Wed. breakout

Chapter 18 A, continued Wed. breakout - Chapter 18,...

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Chapter 18, continued Copyright © 2009, School of Accountancy, Arizona State University
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Process Value Analysis (PVA) Analyze activities required to make our product or perform our service. Classify each activity as value-added or non-value- added    Identify ways to either  reduce or eliminate the non-value-adde activities.
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Value-Added Activities Activities necessary to remain in business Two types: Value-added by mandate Necessary to comply with legal mandate Discretionary activities
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Non-Value-Added Activities All activities other than those that are absolutely essential to remain in business Examples: Scheduling Moving Waiting Inspecting Storing Challenge of activity analysis is to find ways to produce the good without using any of these activities.
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Quality Costs Quality Costs Quality Costs Quality Costs Quality is conformance to customer expectations. Quality
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Chapter 18 A, continued Wed. breakout - Chapter 18,...

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