1. Define the conversion cycle.

The conversion cycle consists of both physical and information activities related to
manufacturing products for sale. It converts the input resources, such as raw materials,
labor, and overhead, into finished products or services for sale.

2. What activities are involved in the batch processing system?

The activities involved in the batch processing system are plan and control production,
perform-production operations, maintain inventory control, and perform-cost accounting.

3. Distinguish between continuous, batch, and made-to-order processing.

In continuous processing, a finished goods of homogeneous nature are manufactured by
following a prescribed set of standard procedures. On the other hand, in batch processing,
the finished goods of similar nature are manufactured in different groups which use similar
inventory and operations. And made-to-order processing involves manufacturing or
discreet products according to customer requirement.

4. What documents trigger and support batch processing systems?

The document that triggers and support batch processing systems are:

a. Sales Forecast e. Work Order

b. Production Schedule f. Move Ticket
c. Bill of Materials: g. Materials Requisition
d. Route Sheet

5. What are the primary determinants for both materials and operations requirements?

The primary determinants for both materials and operations requirements are Inventory
analysis, Sales forecast, Engineering specifications and Bill of materials.

6. What are the objectives of inventory control in the production process?

 The objective of inventory control in the production process is to minimize the total
inventory cost while assuring that adequate inventories exist to meet the demands.

7. What document triggers the beginning of the cost accounting process for a given
production run?
The documents that trigger the beginning of the cost accounting process for a given
production run are Requisitions, excess material, Material returns, Standard cost
file and Work in process account.

8. What documents are needed for cost accounting clerks to update the work-in-process
accounts with standard charges?
The documents needed for cost accounting clerks to update the work in process
accounts are journal vouchers of labor variance and material variance.

9. What types of management reports are prepared by the cost accounting system?
The reports prepared by the cost accounting system are programmed reports which
consist of scheduled and on-demand reports, and ad-hoc reports.

10. What document signals the completion of the production process?

The document that signals the completion of production process is move ticket, it
authorizes the movement of the job from one work center to the next.