Works Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O). Consultation with equipment manufacturer on design specifications Engineering design of mold Creating mold Moving materials from warehouse for test quantity Direct materials for test quantity to judge conformity to design specifications Inspecting test quantity Preparing design specification changes based on test molds Depreciating small kiln used solely for test quantities Depreciating manufacturing building
Works Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O). Consultation with equipment manufacturer on design specifications Engineering design of mold Creating mold Moving materials from warehouse for test quantity Direct materials for test quantity to judge conformity to design specifications Inspecting test quantity Preparing design specification changes based on test molds Depreciating small kiln used solely for test quantities Depreciating manufacturing building
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.2SA
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Works Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U), batch level (B), product/process level (P), or organizational level (O).
- Consultation with equipment manufacturer on design specifications
- Engineering design of mold
- Creating mold
- Moving materials from warehouse for test quantity
- Direct materials for test quantity to judge conformity to design specifications
- Inspecting test quantity
- Preparing design specification changes based on test molds
Depreciating small kiln used solely for test quantities- Depreciating manufacturing building
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