Production planning and control, work centres, inventory control, and cost accounting play an integral role in the conversion cycle. We have discussed the business activities performed in these departments in our lectures and interactive tutorials. Figure 2.1 illustrates some of these business activities.

Required: Discuss the control problems and the possible dangers in the business activities of these departments. Further, recommend the corrective procedures to overcome these dangers.

Transcribed Image Text:

Production Planning and Control Work Centers Inventory Control Cost Accounting Work Rout Sheet Prepare Documents Update Inventory Order Work Move Ticket Order Job Ticket BOM Work Order Move Ticket RM A Inventory Job Ticket Mat'l Req Post to WIP A WIP Production Planning and Control Work Centers Inventory Control Cost Accounting Work Rout Sheet Prepare Documents Update Inventory Order Work Move Ticket Order Job Ticket BOM Work Order Move Ticket RM A Inventory Job Ticket Mat'l Req Post to WIP A WIP

Answer rating: 100% (QA)

Control Problems and Possible dangers 1 There is risk of costs being misallocated to WIP as the work ... View the full answer