Many producers of complex products actually combine manufacturing processes with assembly duties. This means that they make some parts of the finished goods inventory, but they also purchase manufactured components from other manufacturers to include in their products. For example, an automobile manufacturer may purchase rolls of steel and manufacture the shell of the vehicle (hoods, fenders, and so forth). Auto makers also purchase some vehicle parts completed by other manufacturers to produce a finished vehicle. Car makers purchase tires, airbags, windshields, and many other components in their finished state to complete a vehicle. Discuss how you would determine the standard cost and actual cost of finished vehicle produced by a car maker that both manufactures its own parts and assembles parts manufactured by other companies.
Many producers of complex products actually combine manufacturing processes with assembly duties. This means that they make some parts of the finished goods inventory, but they also purchase manufactured components from other manufacturers to include in their products. For example, an automobile manufacturer may purchase rolls of steel and manufacture the shell of the vehicle (hoods, fenders, and so forth). Auto makers also purchase some vehicle parts completed by other manufacturers to produce a finished vehicle. Car makers purchase tires, airbags, windshields, and many other components in their finished state to complete a vehicle. Discuss how you would determine the
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