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Crispies Is a Breakfast Cereal Manufacturing Company

question 38

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Crispies is a breakfast cereal manufacturing company. It is shifting its manufacturing process from batch processing to assembly line production. The information system for the assembly line is ready to be installed. Crispies decides to completely shut down the batch processing system and install the new assembly line. This style of conversion is known as ________.


Definitions:

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business, excluding manufacturing costs.

Master Budget

An inclusive financial planning document that consolidates all of a company’s individual budgets and plans for the upcoming fiscal period.

Production Budget

A financial plan that estimates the number of units that need to be manufactured to meet sales goals and inventory requirements.

Cash Budget

An estimate of cash inflows and outflows for a business or project over a specific period of time, used for managing liquidity and ensuring financial stability.

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