Rusty's Steel has just recently started a spin off company "Shiny Bearings" (Shiny) selling high precision manufactured goods such as bearings, valves and gears. Shiny operates as a wholesaler and does not have a production facility where goods are manufactured. It does keep in contact with its customers and source out manufactured goods for inventory or direct delivery to customers. Its niche is providing technical advice on its product lines. You have been asked to help create a effective internal control system and address some questions (in the remaining short answer questions) about its operations.

a) If Shiny is a wholesaler, does it have a Conversion or Production process or cycle? In order to receive a mark your answer must state why or why not?

b) If Shiny's did decide to manufacture a product for sale what documentation would they most likely look to in order to plan and authorize production?     And again, if they were manufacturing, what documents would they use to control the consumption of production resources including labour? 

Answer rating: 100% (QA)

SOLUTION a Shiny Bearings is a wholesaler and does not have a production facility where goods are manufactured As such Shiny does not have a conversion or production process or cycle Unlike a manufact... View the full answer