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.

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Definitions:

Risk Aversion

The tendency of investors to prefer lower risk options, avoiding higher risk investments even if they offer potentially higher returns.

Expected Return

The profit or loss an investor anticipates on an investment that has various known or expected rates of return.

Discrete Variables

These are variables that represent counts and can only take on distinct, separate values.

Specific Values

Specific values in finance typically refer to precise monetary figures associated with assets, liabilities, revenues, or expenses, crucial for accurate financial analysis and reporting.