Production planning and control, work centres, inventory control, and cost accounting play an integral role in the conversion cycle. We have discussed the business activities performed in these departments in our lectures and interactive tutorials. Figure illustrates some of these business activities.    Required: Discuss the control problems and the possible dangers in the business activities of these departments. Further, recommend the corrective procedures to overcome these dangers.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Production planning and control, work centres, inventory control, and cost accounting play an integral role in the conversion cycle. We have discussed the business activities performed in these departments in our lectures and interactive tutorials. Figure illustrates some of these business activities. 

 

Required: Discuss the control problems and the possible dangers in the business activities of these departments. Further, recommend the corrective procedures to overcome these dangers.

Production Planning
and Control
Cost Accounting
Work Centers
Inventory Control
A
Update
Inventory
Work
Rout Sheet
Prepare
Documents
Order
Move Ticket
Work
Order
Job Ticket
BOM
Work Order
RM
Move Ticket
Inventory
A
Job Ticket
Mat'l Req
Post to WIP
A
WIP
Transcribed Image Text:Production Planning and Control Cost Accounting Work Centers Inventory Control A Update Inventory Work Rout Sheet Prepare Documents Order Move Ticket Work Order Job Ticket BOM Work Order RM Move Ticket Inventory A Job Ticket Mat'l Req Post to WIP A WIP
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