Identify the organizational functions and the documents involved in the expenditure cycle and in the conversion cycle

Question

What is the fixed asset system?

Answer 1

With fixed assets is referred to P.P.E. used in the operation of a business. A firm’s fixed asset system processes the transactions pertaining to the acquisition, maintenance, and disposal of its fixed assets.

Answer 2

Departments/functions involved:
- Departmental manager
- Departmental personnel
- Fixed asset department (accounting)
Documents involved:
- Similar to purchase process
- Depreciation schedule
- Disposal request
- Disposal report

Answer 3

1. Production schedule

2. Bill of materials

3. Route sheet

4. Work order

5. Move ticket

6. Materials requisition

Answer 4

Formal plan and authorization to start production

Answer 5

A list which specifies the types and quantities of the raw material and subassemblies are required to produce one unit of finished product

Answer 6

Shows the production path that a particular batch follows throughout the manufacturing process and shows the sequence of operations and the standard time for each task