Documente Academic
Documente Profesional
Documente Cultură
Part-A (2 Marks)
1.
What is allowance?
1. A sum set aside for an occurrence that may or may not come to pass. For
example, funds earmarked for expenses associated with potential bad weather.
2. Funds allocated periodically for a stated purpose, such as a per diem.
3. A discount, especially one offered as a result of specific circumstances.
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The three classic factors that affect the planning process in business are inputs,
processes and outcomes. Inputs are raw materials, resources, knowledge and
anything else brought to the planning process. Processes are what you do to the
inputs to create outcomes. Outcomes are partly profits, but also jobs created for
employees, and the use and pleasure that consumers receive from finished
products or services.
What are the reasons for process documentation?
A process consists of inputs and outputs that are created and used to produce
significant outcomes. Companies rely on processes because they bring value and
cohesiveness. You will find different types of processes in the marketplace,
including management, support, and operations. One of the methods you want to
apply when it comes to documenting a process is identifying and interviewing the
right individuals or groups.
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What is CAPP?
Computer-aided process planning (CAPP) is the use of computer technology to
aid in the process planning of a part or product, in manufacturing. CAPP is the link
between CAD and CAM in that it provides for the planning of the process to be
used in producing a designed part.
What are the advantages of CAPP?
Investment in hardware and software is not much.
The system offers a shorter development time and lower manpower
consumption to develop process plan.
The system is very reliable and reasonable in real production environments for
small and medium size companies.
Quality of process plan depends on knowledge and background of process
planner.
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Define costing.
System of computing cost of production or of running a business, by allocating
expenditure to various stages of production or to different operations of a firm.
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3. Contract Costing
4. Batch Costing
5. Operating Costing
6. Process Costing.
7. Multiple Costing
8. Uniform Costing.
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opportunity cost
transaction cost
sunk cost
marginal cost
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Material is considered and object that is used in the creation of your end
product but does not become part of the end product. For example an "air
tool" used to assemble a car is indirect material. A "bearing" used to
maintain a conveyor system is considered an indirect material. While a "gas
pedal" that leaves the dealership with a car, for example, is direct material.
What is meant by indirect material?
Consumables (such as cleaning chemicals, disposable tools, protective
devices) not used as raw materials, but which make the production of a
good or service possible, more efficient, or safer. Indirect material costs are
not readily identifiable with a specific product or job. They are termed
indirect costs and are charged to overhead accounts.
Who are called direct labour?
Workers such as those who operate machines, who are directly involved in
the production of goods or services, rather than those involved in organizing
or managing the cost of employing workers to make a particular product or
provide a particular service. This does not include other costs such as the
amount spent on materials etc in Britain, workers who are employed
directly by an organization such as a local government authority, rather than
being employed through a separate company.
State some examples for direct labour?
"Direct labor" refers to the work done by those employees who actually
make the product on the production line. ("Indirect labor" is work done by
employees who work in the production area, but do not work on the
production line. Examples include employees who set up or maintain the
equipment.)
Unlike direct materials (which are obtained prior to being used) direct labor
is obtained and used at the same time. This means that for any given good
output, we can compute the direct labor rate variance, the direct labor
efficiency variance, and the standard direct labor cost at the same time.
Who are called indirect labour?
Wages paid to the indirect laborer is called indirect labor cost, or indirect
wages, or unproductive wages. These laborers are not directly engaged in
manufacturing of goods or services. They are engaged generally in office &
maintenance activities, selling & distribution of goods & services. Example
of indirect labor are wages or salary paid to the office peon, clerk, watch
man, store keeper etc.
What is meant by factory on cost?
Total cost of making a product at the production location, and comprising of
raw material, labor, and overhead costs.
Define man hour and machine hour rate.
As the name indicates, this method is simply a combination of man-hour rate
and machine-hourrate methods. The man-hour rate method is suitable only where work is
done by hand, for example,in fitting and assembly shops etc. Similarly, machine hour rate
method is suitable where almost allthe work is done by machines. Thus, in this way, both the
methods can be applied in one factory.This method is combination of man-hour and
machine-hour rate method of allocation.
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