Controlling the cost of product defects
Article Abstract:
Effective accounting information systems (AIS) will enhance decision making, motivate executives, and increase efficiency in the organization. The AIS used to report and control production spoilage or product defects usually will not achieve all of the three objectives which, consequently, produces conflict between the management personnel. Defective products or work and production spoilage indicates imperfections in labor, materials, or machines and work which can not meet either the satisfaction or the specifications of the customer. A quality defect-reporting system will meet the following objectives: record all defect-related costs; provide executives with enough data for decisions about the levels and reasons of the defects; motivate executives to take the responsibility and to prevent the defects; and allow for feedback for the evaluation of the department's performance and data for corrective action when needed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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Volunteers: what are they worth?
Article Abstract:
Nonprofit organizations tend to undervalue the true cost of their services by omitting the monetary values of volunteers' donated time and donated materials. Accountants have mistakenly assumed that volunteers are not being effectively managed, therefore their services carry insignificant value. Volunteers' donated time can be tracked by using time sheets, and monetary values should be subsequently assigned based on the specific services they performed. Value on donated materials should be accounted for when they are significant to the administration of a program. A case study is described to illustrate volunteer accounting concepts.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
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Is BOMP worth the trouble?
Article Abstract:
A description is given on the examination and planning of the Bill of Material Processor System (BOMB) software package for Burke Industries Inc.'s carpet division. The program has two main files, including: the extended bills of materials and the product master file. A conventional cost breakdown for labor, material, and overhead, according to production, was used to determine product production for bills of material.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1985
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