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Operation (in the multioperation make-to-order process)
A step performed in a manufacturing process.
For instance, manufacturing a sofa includes the following operations:
- Cutting wood
- Building a frame
- Stuffing
- Applying the covering
A multioperation make-to-order process includes registering operations in work in progress documents. This ensures accounting for the manufacturing overheads incurred in the operations. These overheads are included in the cost of finished goods.