Jeremy Is in Charge of Production at Tech Farm Equipment

question 17

Multiple Choice

Jeremy is in charge of production at Tech Farm Equipment.His job responsibilities include eliminating defects in the equipment parts the factory produces.However,he has advised his crew to alert him only when defects exceed 200 per million,which he considers a serious deviation from standards.In this case,Jeremy is using:

• A) a management audit.
• B) the principle of deviation.
• C) clan control.
• D) the principle of exception.
• E) behavioral standards.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and the costs necessary to make the sale.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services rendered on credit.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that is not expected to be collected.

Subsidiary Ledger

A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.