Chapter 10, Problem 15AA

To determine

To state: Stages in the production process.

Explanation of Solution

The production process involves four steps: planning, quality control, purchasing and inventory control. Planning is the preparation for the production process i.e. how much raw material is to be acquired and from where. Quality control means inspecting the quality of the raw material to be bought. Purchasing means buying raw material and inventory control means the finest consumption of inventory at a particular time.