E what the organization paid to obtain the item long

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: h project). General support can be related to mission services or it can be part of general administration. If the former, it includes centralized functions that assist the organization's production departments but that are organized separately from them, such as central maintenance or cleaning. General administration consists of the organization's central office staff activities, which typically are not directly related to specific production departments. These activities include computer operations, payroll, purchasing, legal work, billing, and so forth. Capital Capital also can be looked at as either mission or support. The former includes all capital resources needed to provide direct support to the manufacturing or service-delivery activity. It can be divided between short-lived (used up in one year or less) or long-lived (used up over several years). Short-lived mission capital consists of raw materials (sometimes called direct materials) and production-related supplies. Raw materials are the items in a manufacturing effort that enter the final product; that is, the items to which a manufacturing organization adds value. Production-related supplies do not enter the...
View Full Document

This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online