AIS Chapter 14

Manufacturing Overhead

All manufacturing costs that are not economically feasible to trace directly to specific jobs or processes.

Manufacturing Resource Planning (MRP-II)

An extension of materials resource planning that seeks to balance existing production capacity and raw materials needs to be forecasted sales demands.

Production Cycle

The recurring set of business activites and related data processing operations associated with the manufacture of products.

Production Order

A document that authorizes the manufacture of a finished good.

Operations List

A document that lists the steps required to manufacture a finished good.

Job-time Ticket

A document that records labor costs associated with manufacturing a product.

Master Production Schedule (MPS)

A document that specifies how much of a finished good is to be produced during a specific time period.

Move Ticket

A document that tracks the transfer of inventory from one work center to another.

Materials Requisition

A document used to authorize removal of raw materials from inventory.

Cost Driver

A factor that causes costs to change.

Bill of Materials

A list of the raw materials used to create a finished product.

Throughput

A measure of the number of good units produced in a period of time.

Lean Manufacturing

A production planning technique that is an extension of the just-in-time inventory control method.

Request for Proposal

A request by an organization or department for vendors to bid on hardwar, software, or services.

Computer-integrated Manufacturing (CIM)

A term used to refer to the use of robots and other IT techniques as part of the production process.

Job-order Costing

A cost accounting method that assigns costs to specific batches or production runs and is used when the product or service consists of uniquely identifiable items.

Activity-based Costing (ABC)

A cost system designed to trace costs to the activites that creat them. Once costs are traced to their specific activities, they are allocted to theircorresponding products or departments.

Process Costing

A cost system that assigns cost to each process, or work center, in the production cycle, and then calculates the average cost for all units produced. Used when masses of similar goods or services are produced or sols.