The Process Within TB Figure 15

question 23

Essay

The process within TB Figure 15.1 Bubble 1.0 might be described as follows: Consistent with the value chain concept,the IPP begins with the design of the product and production processes.Activity-based costing can be used to develop estimates of the future cost of producing new products as well as potential cost changes from product or design changes.The entire design process is automated through the use of computer-aided design (CAD)and computer-aided engineering (CAE).With the use of enterprise systems,the electronic designs produced using CAD/CAE become the basis for developing detailed production schedules (bubble 2.0 in TB Figure 15.1)as well as the electronic control of production machines.In addition to the detailed product design,the CAD/CAE process results in several data stores of information that are used later in the IPP:

Refer to TB Figure 15.1.Prepare a Level 1 data flow diagram for the product and production process design process only.

Grasp the concept of effective annual rate and its dependence on compounding periods.

Recognize the significance of the timing and amount of cash flows in determining the desirability of investments.

Understand the concept of opportunity cost in the context of investment decisions.

Differentiate between annuity due and ordinary annuity.

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Definitions:

Car Loan

A financial agreement in which a borrower receives money to purchase a car and agrees to repay the lender over time, typically with interest.

Total Interest

The sum of all interest payments made over the life of a loan or investment.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.

Amortization Period

The total length of time over which equal regular payments will repay a loan.