EBK OPERATIONS MANAGEMENT
EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 10, Problem 25P
Summary Introduction

To determine: The firm which is capable.

Introduction:

Process capability index is the measure of the capacity of a process which is the measure of ability of the process to produce the required output within specified limits.

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Your firm has been the auditor of Caribild Products, a listed company, for a number of years. The  engagement partner has asked you to describe the matters you would consider when planning the audit for  the year ended 31January 2022. During  recent visit to the company you obtained the following information: (a) The management accounts for the 10 months to 30 November 2021 show a revenue of $260 million and profit before tax of $8 million. Assume sales and profits accrue evenly throughout the year. In the year ended 31 January 2021 Caribild Products had sales of $220 million and profit before tax of $16 million. (b) The company installed a new computerised inventory control system which has operated from 1 June  2021. As the inventory control system records inventory movements and current inventory quantities, the company is proposing: (i) To use the inventory quantities on the computer to value the inventory at the year-end (ii) Not to carry out an inventory count at the year-end (c)…
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Process selection and facility layout; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=wjxS79880MM;License: Standard YouTube License, CC-BY