The recurring set of business activites and related data processing operations associated with the manufacture of products.
Bill of Materials
A list of the raw materials used to create a finished product.
A document that lists the steps required to manufacture a finished good.
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.
A production planning technique that is an extension of the just-in-time inventory control method.
Master Production Schedule (MPS)
A document that specifies how much of a finished good is to be produced during a specific time period.
A document that authorizes the manufacture of a finished good.
A document used to authorize removal of raw materials from inventory.
A document that tracks the transfer of inventory from one work center to another.
Computer-integrated Manufacturing (CIM)
A term used to refer to the use of robots and other IT techniques as part of the production process.
A document that records labor costs associated with manufacturing a product.
All manufacturing costs that are not economically feasible to trace directly to specific jobs or processes.
Request for Proposal
A request by an organization or department for vendors to bid on hardwar, software, or services.
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.
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.
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.
A factor that causes costs to change.
A measure of the number of good units produced in a period of time.