Chat with AI
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 13
PROCESS IMPROVEMENT/INNOVATION
Refer to Exercise 12-8. Suppose that clerical error is the common root cause of the nonvalue- added activities. Paying bills is a subprocess that belongs to the procurement process. The procurement process is made up of three subprocesses: purchasing, receiving, and paying bills.
Required:
1. What is the definition of a process? Identify the common objective for the procurement process. Repeat for each subprocess.
2. Now, suppose that Honley decides to attack the root cause of the non-value-added activities of the bill-paying process by improving the skills of its purchasing and receiving clerks. As a result, the number of discrepancies found drops by 30 percent. Discuss the potential effect this initiative might have on the bill-paying process. Does this initiative represent process improvement or proce ss innovation? Explain.
Refer to Exercise 12-8. Suppose that clerical error is the common root cause of the nonvalue- added activities. Paying bills is a subprocess that belongs to the procurement process. The procurement process is made up of three subprocesses: purchasing, receiving, and paying bills.
Required:
1. What is the definition of a process? Identify the common objective for the procurement process. Repeat for each subprocess.
2. Now, suppose that Honley decides to attack the root cause of the non-value-added activities of the bill-paying process by improving the skills of its purchasing and receiving clerks. As a result, the number of discrepancies found drops by 30 percent. Discuss the potential effect this initiative might have on the bill-paying process. Does this initiative represent process improvement or proce ss innovation? Explain.
Explanation
Verified
Verified
1.
Process:
Process is a course of act...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
