ACC 113 Lecture Notes - Lecture 32: Lean Manufacturing, Railways Act 1921, Cellular Manufacturing
5 Jan 2021
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Product costing: manufacturing processes, cost terminology and cost flows. Manufacturing companies purchase raw materials from other companies and transforms then into a finished product, usually with assistance of labour and other supporting activities, technologies and infrastructure (overheads) Merchandising companies sell products that someone else has manufactured. Service companies do not sell a tangible product as their primary business. Traditionally, similar machines were grouped together like a furniture manufacturer might have areas devoted to cutting and rough sanding, shaping cut wood into furniture pieces, etc. Grouping together machinery greatly increase time necessary to manufacture products and makes it harder to meet special orders or unexpected increase in demand. Raw material is processed in each area and pushed" to next area. Not unusual for one or more of these areas to be in different building or different plants. Normal to accumulate raw materials and finished goods.
