SMG AC 222 Lecture 2: AC Notes Chapter 2
11 May 2017
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Chapter 2: (cid:862)how a car is built(cid:863) **re-watch*, made ships duri(cid:374)g ww1, the(cid:374) fords" (cid:272)ars, a(cid:374)d (cid:271)o(cid:373)(cid:271)ers duri(cid:374)g wwii, where ford invented vertical integration. Completing multiple levels: 2,500 parts going into the car, building materials lists all the parts in a product and organizes them in a hierarchical order, generally, all raw materials: parts used to make final product, direct vs. Indirect labor what makes sense for the business defines classification. If the individual touches the product, they are likely direct labor: direct materials leave with the car, exception is if it is immeasurable (phosphates with mustang: bought in bulk) Indirect if they are required to support production (even if they touch it) Sga (selling general a: raw materials (can differ) Once something has been touched, it is no longer raw material, it is a work in progress: wip time table is generally 24 hours (for video, it is dependent on the unit/perspective you are analyzing.
