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  • Camille Anne Balondo - SBAC3B Assignment No. 4 - Conversion Cycle

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    1. The document lists 10 questions about the conversion cycle process involving batch processing systems, inventory control, cost accounting, and control activities. 2. The response provides definitions and examples to answer each question, including the documents involved in batch processing, objectives of inventory control, cost accounting updates, and control activities like transaction authorization and segregation of duties. 3. The response also defines key terms like islands of technology and value stream.

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    1. The document lists 10 questions about the conversion cycle process involving batch processing systems, inventory control, cost accounting, and control activities. 2. The response provides definitions and examples to answer each question, including the documents involved in batch processing, objectives of inventory control, cost accounting updates, and control activities like transaction authorization and segregation of duties. 3. The response also defines key terms like islands of technology and value stream.

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    82 views3 pages

    Camille Anne Balondo - SBAC3B Assignment No. 4 - Conversion Cycle

    Uploaded by

    Sharjaaah
    1. The document lists 10 questions about the conversion cycle process involving batch processing systems, inventory control, cost accounting, and control activities. 2. The response provides definitions and examples to answer each question, including the documents involved in batch processing, objectives of inventory control, cost accounting updates, and control activities like transaction authorization and segregation of duties. 3. The response also defines key terms like islands of technology and value stream.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    NAME : BALONDO, CAMILLE ANNE K.

    SECTION: SBAC 3B
    ASSIGNMENT NO. 4 (CONVERSION CYCLE)

    S. NO. QUESTION

    1 What activities are involved in the batch processing system?

    2 What documents trigger and support batch processing systems?

    3 What are the objectives of inventory control in the production process?

    What documents are needed for cost accounting clerks to update the
    4 work-in-process accounts with standard charges?

    5 What document signals the completion of the production process?

    Give an example for each of the following control activities in the


    6 conversion cycle: transaction authorization, segregation of duties, and
    access.

    What is meant by the statement, ‘‘Inventories camouflage production


    7 problems and can cause overproduction’’? What is wrong with
    overproduction if you already own the raw material?

    8 Distinguish between activities and cost objects in activity-based costing.

    9 What is meant by the term islands of technology?

    10 Define the term value stream.


    ANSWER

    Plan and control production, maintain inventory control, perform cost accounting.

    a. Production schedule - plan


    b. Bill of materials - list
    c. Route sheet - operation list
    d. Work order - initates work
    e. Move ticket - moves work from one center to next
    f. Material requisition - gives authorization to release material

    Minimize total inventory cost while insuring that adequate inventories exist to meet demand.

    Journal vouchers are sent from cost to the G/L account


    a. Labor variance
    b. Material variances

    a. Inventory should be separate from record management and FG inventory custody


    b. Cost accounting separate from work centers
    c. G/L separate from other accounting function
    Transaction authorization - pro planning authorizes a work order, move tickets and signed by
    supervisors in each work center authorizing activity for each batch and for the movement of products.
    a. Separation of duties - production planning and control are separated from work centers.
    b. Access - ID badges, security guards, electronic sensors/alarms.

    This causes build ups of inventory at WIP. Bottlenecking.

    Activites are the work being performed in a firm. Preparing a purchase order, shipping a product. Cost
    objects are things that casue activities, products, services, customers.

    Islands of technology - modern automation that stands alone. Islands are CNC machines that can perform
    multiple operations with little human involvement.

    All of the steps essential to the production of a product. Steps a customer will pay for.
    SCORE

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