FINCON CHAP 4 PART 3

has a major impact on the efficiency of the materials management department in that it must specify in advance the materials needed to

produce products.

Answer explanation

engineering department

Without this information, the materials management personnel are reduced to guessing about the contents of new products, which commonly results in purchases of items that are never used, which contributes to an excessively

large inventory.

Answer explanation

BILL OF MATERIALS (BOM) ACCURACY

is commonly known as a bill of materials

Answer explanation

materials list

gives a company a good basis for building products that no one else can match

Answer explanation

Leading-edge research

It is easily tracked by the legal staff, which usually assists in creating and filing the necessary documents.

Answer explanation

NUMBER OF PATENT APPLICATION FILED

This is a surer measure of corporate health.

Answer explanation

PERCENTAGE OF SALES FROM NEW

PRODUCTS

The engineering staff should always strive to

reduce the number of new parts in each

product design to the absolute minimum,

because not doing so entails buying from

additional suppliers, as well as stocking

extra parts in the warehouse, which requires

an additional investment

Answer explanation

PERCENTAGE OF NEW PARTS USED ON

PRODUCTS

To track it, compare the bill of materials for each new product to the existing list of parts in

inventory to see which items are new

Answer explanation

PERCENTAGE OF NEW PARTS USED ON

PRODUCTS

should always strive to

reduce the number of new parts in each

product design to the absolute minimum,

because not doing so entails buying from

additional suppliers, as well as stocking

extra parts in the warehouse, which requires

an additional investment.

Answer explanation

engineering staff

A key measure of a company’s ability to

thrive in the marketplace

Answer explanation

PERCENTAGE OF NEW PRODUCTS

INTRODUCED IN THE PERIOD