tailieunhanh - Cost Accounting Traditions And Innovations - Chapter 7

CHAPTER 7 Special Production Issues: Lost Units and Accretion After completing this chapter, you should be able to answer the following questions: What is an accepted quality level and how does it relate to zero tolerance for errors and defects? | CHAPTER Special Production Issues Lost Units and Accretion 7 LEARNING OBJECTIVES Ater completing this chapter you should be able to answer the following questions 0 What is an accepted quality level and how does it relate to zero tolerance for errors and defects 0 Why do lost units occur in manufacturing processes 0 How do normal and abnormal losses of units differ and how is each treated in an EUP schedule s How are the costs of each type of loss assigned 0 How are rework costs of defective units treated 0 How are losses treated in a job order costing system 0 How does accretion of units affect the EUP schedule and costs per unit 0 What is the cost of quality products INTRODUCING General Electric Company T1. . homas Alva Edison invented the first successful incandescent light bulb in 1879. Shortly thereafter General Electric GE began providing power and lighting up America and the world. General Electric Company was formed in 1892 through a merger of Edison Electric Light Company and Thomson-Houston Company. Today GE is the world s largest diversified services company as well as a provider of high-quality hightechnology industrial and consumer products. While maintaining world-class leadership in its beginnings in providing power systems and electric lighting the company has expanded into many areas. A few examples include aircraft engines medical systems financial services television broadcasting and transportation systems. GE consists of more than three dozen businesses operating in 100 companies around the globe. Although widely diverse GE businesses are also highly familial and share information resources technology and intellectual capital. GE s sharing among all its businesses includes http 2. a common leadership development system 3. one set of common values and 4. four common initiatives globalization product services e-business and Six Sigma quality. Six Sigma is a quality management term used to define a process for eliminating variation and .