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, 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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