What Does WIP Stand For

question 20

Short Answer

What does WIP stand for?

Recognize external failure costs from a schedule of activity costs.

Analyze the effects of batch size changes on value-added, non-value-added, and total lead times.

Understand the components of a cost of quality report including prevention and appraisal costs.

Compute the percentage of non-value-added activities.

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Definitions:

Operating Activities

Pertains to the primary day-to-day activities of a business, such as selling products or services, which are reflected in the cash flow statement.

Net Cash

The balance of cash remaining once cash inflows and outflows have been accounted for during a specific period.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing debt, obtaining loans, and returning capital to shareholders.

Net Cash

The amount of cash available after accounting for all cash inflows and outflows within a specific period.