Name: Darrel P.

Sapinoso
Course/Block: BSA-2A
1. Define production cycle.
Production cycle includes all activities related to the conversion of raw materials into finished
goods.

2. What are the basic business activities and related information processing operations performed in
the production cycle?

 Product Design
 Planning and Scheduling
 Production Operations
 Cost Accounting

3. What are the major threats in the production cycle?

 Poor product design resulting in excess costs

 Over and under production
 Inappropriate allocation of overhead costs
 Disruption of operations

4. Enumerate the various control procedures for dealing with those threats.

 Poor product design resulting in excess costs – analysis of costs arising from product
design choice
 Over and under production – implementation of a production planning system
 Inappropriate allocation of overhead costs – implementation of time-driven activity-based
costing
 Disruption of operations - backup and disaster recovery plans

5. How can a company’s accounting system help to achieve its manufacturing goals?

A company’s accounting system can help achieve manufacturing goals by providing

information for planning, controlling, and evaluating the performance of production operations of
the company. It also provide accurate cost data about products for use in pricing and product mix
decisions and help collect and process the information used to calculate the inventory and cost of
goods sold values that appear in organization’s financials.

6. What are the key decisions that must be made in the production cycle and the information
required to make those decisions?
 Production planning and scheduling – master production schedule, production order, and
materials requisition
 Product designing – bill of materials and operations list