ACC 100 Chapter Notes - Chapter 1: Lillian Moller Gilbreth, Elton Mayo, Total Quality Management

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burgundyclam121

25 Sep 2012

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Operations management: the management of processes or systems that create goods and or provide services. Process: a series of linked actions, changes, or functions bringing about a result. Value added: the difference between the cost of inputs and the value or price of outputs. Increase production, may be used for r&d, investments and profits. Model: an abstraction of reality; a simplified representation of something. System: a set of interrelated parts that must work together. Pareto phenomenon: a few factors that account for a high percentage of results achieved: 80/20 rule - 80% of problems are caused by 20% of the activities. Craft production: system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods. Division of labour: breaking up a production process into small tasks so that each worker performs a small portion of the overall job.

Related Questions

AVF Inc. manufactures several lines of packing equipment. Thecompany considers product reliability and outstanding customerservice to be critical to its success. The customer servicedepartment is responsible for:

-Providing prospective customers with product information.

-Monitoring spare parts availability

-Providing equipment operating and maintenance information tocustomers

-Developing aand delivering customer training courses

-Responding to customer complaints and making service calls

Handling customer warranty claims

-Maintaining good customer relations

The company recently made a sizeable investment to upgrade itscustomer service department computer system. the upgrade isexpected to improve operational efficiency and customersatisfaction. The outputs of the new system include managementreports used to monitor performance in the areas listed above. Theaudit committee has asked the internal audit function to audit theoperational effectiveness and efficiency of the customer servicedepartment. The engagement covers the following areas:

-Security of assets, includinf information

-Compliance with applicable laws and company policies

-Reliability of Financial records

-Effectiveness of performing assigned responsibilities

-Valuation of the spare parts inventory

a) Discuss why each of the fives areas specified by theaudit committee may or may not be appropriate for this assuranceengagement.

b) Identify three other areas of the customer servicedepartment that may warrant the internal auditor'sattention.

c) What are the primary audit tasks the internal auditorshould perform to avaluate the operational effectiveness andefficiency of the customer service department in meeting thefollowing responsibilities?

-Developing and delivering customer training courses.

-Responding to customer complaints and making service calls.

-Handling customer warranty claims.

What is the difference between a cost , a profit center and an investment center?

It only applies to service companies

It concerns the level of decision making and control the manager has

It is relevant only to nsnufacturing companies

It varies based on the type of product delivery Ms and services provided to customers

tanmule108

1. Company has a capacity to produce 100,000units in a year. Usually the companyproduces and sells 80,000 units in any year. The selling price is $20.00; variableproduction cost is $8.00 per unit and total fixed cost is$400,000. This year company received arequest of special order for 15,000 units at a selling price of$15.00 per unit.

1.For eachitem below decide it is relevant or not relevant.

a. Selling price of $20.00

b. Special order price of $15.00

c. Variable production cost of $8.00

d. Fixed cost of $400,000

1.Should the company accept this specialorder? Why or why not? show calculations to support youranswer.

2.2. In makingbusiness decisions, management ordinarily considers only financialinformation. TRUE OR FALSE?

3. Theprocess used to identify which financial data changes underalternative courses of action is called incremental analysis. TRUEOR FALSE?

4. 4.Opportunity cost is a cost that cannot be changed by anypresent or future decision. TRUE OR FALSE?

5. Asell-or-process further decision compares the total revenue to beearned and all costs of producing the product. TRUE ORFALSE?

6. Sunkcosts are not relevant in incremental analysis. TRUE ORFALSE?

7.7. What is netpresent value?

a. Thedifference between the present value of net income and the capitalinvestment

b. Thedifference between the net cash flows and the capitalinvestment

c. Thedifference between the present value of net cash flows and thecapital investment

d. The difference between the net cash flows and thepresent value of the capital investment

8.8. To produce oneturkey platter, Jax Inc. uses $10 of variable and $1.50 of fixedcosts. A Peruvian wholesaler has offered to purchase 2,000 plattersat $12 each. Jax will incur special shipping costs of $0.75 perplatter if the order is accepted. Jax has sufficient unusedcapacity to produce the additional platters. What will be theeffect on net income if the special order is accepted?

a. $1000 increase

b. $2500 increase

c. $4000 increase

d. $500 decrease

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ACC 100 Chapter Notes - Chapter 1: Lillian Moller Gilbreth, Elton Mayo, Total Quality Management

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