Essays on Inventory

Management

In supply chain management, the role of manager plays an important role in the success of the business. The job vacancy of ‘supply chain manager’ is a very demanding and dedicated job, which covers almost every important aspect of the supply chain management. The main requirement for the job is to create and maintain a good supply chain process for the company’s new office. It includes the responsibilities regarding purchases, shipping, production planning, and relation with the suppliers and receiving of goods. The job for the manager post requires special skills to manage all different production departments in an ...

An Accounting Investigation after the UK based super market restated its profits

Issue: Tesco restated its accounts due to overstatement of earnings and an accounting investigation is looking into the matters. The company is unable to account for its problems as well as its earnings.

Synopsis: UK based super market chain Tesco restated its accounts last month due to overstatement of profits by $250 million in the half yearly reports. After the profits were slashed and the dividend cut off, the company had suspended 4 of its senior level executives to delve further in the matter. Now the UK based firm is unable to account for its own problems. It can ...

Hershey Company Costing system

First we need to analyze the Production stages for Hershey’s Chocolate. At Hershey several sequential stages for production of chocolate are:

Fermentation; In this stage Cocoa beans are put in heaps for around a week to make the cocoa flavor.

Roasting; in this stage cocoa beans are roasted. Hulling; In this stage a machine is used to separates the shell from the bean. Milling; the nibs are mixed with chocolate liquor. Mixing; Cocoa butter, milk and sugar are mixed with chocolate liquor. Then the mixture is dried into a powder that is known as chocolate crumb.

Molding; Heavy ...

Last week, the half-year returns were disclosed, and the new strategic plan was being unveiled, signaling a decrease in returns by 16%. As they say, in the world of business it is a case of ‘shape up or ship out’. Our major undoing has been the continued reliance on obsolete inventory systems that place overheads on ordering, stocking and real-time response to clients’ complaints and wrong deliveries from suppliers. The strategic plan set put a comprehensive approach to achieving an 18% increase in returns by the end of the coming financial year. Having identified our major undoing, we cannot sit and ...

Origin and Development

The terminology, bullwhip effect, originates from the reality, according to which a light motion of the handle of a bullwhip can results in making the tip of the belt flay wildly at speed more than 800 miles per hour, about 20 percent quicker than speed of sound, producing a sonic boom. One of the major issues occurred at the time of implementation of supply chain is Bullwhip effect. Bullwhip effect was firstly announced by Procter and Gamble Company (Gundlach and Murphy, 2000). Bullwhip effect refers to the increase in inconsistency of orders as one goes up a supply chain. The Bullwhip effect can ...

Managing inventories is a key operation for any business. With the advent of technology computer software have been developed to make the control even easier. Sales companies mostly use the fixed order period inventory system, also called periodic inventory system. This method works on the idea of only updating your company’s inventory balance. Orders are placed periodically with varying quantities. For one to do it effectively, the balance of the stock has to be determined. In determination, the number of products sold is usually tracked so that it is much cheaper to know the balance and when the inventory ...

1. My personal reaction to this video was that of total awe and admiration for Jeff Bozos, for being the visionary that he is. (Let us forget about those drones at the end. What is happening in the present is more relevant to us.) Here, I have to say that the automation system shown felt awesome to me. If you break it up, it becomes somewhat simple. Some people may say that conveyors, vacuum pads, intelligent software; these things are common today everywhere. However, what enthralled me was the genius of the person who saw the overall picture and ...

In the management of inventory by a firm there exist different techniques of valuing inventory at hand and that which has been acquired. The most famous and employed techniques are LIFO and FIFO.LIFO is an acronym referring to Last in First Out while FIFO refers to First in First Out.

The gross difference between the two techniques is how the inventory is valued before it leaves the warehouse to the processing unit,(walther,2012)

In last in last out (LIFO) model the inventory per unit leaving the warehouse is valued at the price in which the last acquired inventory is ...

Business

Understanding the components of the cost of sales is very important in any given business irrespective of size and location. The cost of sales is a broad term referring to both the cost of production as well as the cost of services provided to the customers by the business enterprise (Anthony, 2005). Thus the components of the cost of sales include raw materials, labor and another factor that went into the production of the good or the service to the customer as well as the service rendered too the customers themselves. In a food and beverage establishment the components of the ...

Accounting

Perpetual inventory system The perpetual inventory system is one of the methods to record inventory transactions. In this system, inventory is updated every time in the event of sales, purchase or returns of the goods. It is more recommended to use that system rather than the periodic inventory system in these days.

Advantages of the Perpetual inventory system

Following is the list of some of the advantages of accounting for inventory under the perpetual inventory system. - It allows efficient and accurate restocking because inventory is being updated after every entry relating to the stock - As because of the nature of ...

Following is the list of ten internal controls that the organization should have over the collection of the accounts receivables.

- Accounts receivable collections should be processed on a daily basis - Establishment of the proper information system by the organization - Proper segregation of the duties - Establishment of proper authority level - Constant review of the balances due from the customers so that proper check and balances is to be maintained by the organization - Reminder letters should be mailed to the customers after a reasonable interval of time - Money received in cash form from the clients should be deposited in banks on time - Proper recording of the transactions by ...

The Generally Accepted Accounting Principles – GAAP and International Financial Reporting Standards – IFRS are the set of standards used in various countries. GAAP is generally followed in the US while the IFRS was established in 2001 and is used in most countries around the world for financial reporting. GAAP is mainly based on rules while IFRS mainly relies on principles. Albeit the functioning philosophy and viewpoint behind both GAAP and IFRS is quite similar there are several key differences which are explained in this paper. The first difference is with respect to inventory costing as the LIFO ...

Introduction

Absorption costing or full costing refers to a costing system that treats all the production costs, regardless of whether they are fixed or variable. On the other hand, variable, marginal, or direct costing refers to a costing system where the costs of production that vary with the output are essentially treated as product costs. If Patty wishes to show the maximum profit to the bank over the preceding two years period, she should present full costing or absorption costing because the profits determined by variable costing method are not proper and true. The reason why they are not proper and ...

The article provides us with information about two separate studies conducted by Ernst and Young and University of Florida in 2002. Both studies analyze the causes and effects of inventory shrinkage in US retail industry.

According to the statistics, retailers loose at around 1.7% of their total annual sales on average due to inventory shrinkage, which includes shoplifting, employee theft and various errors.

In my opinion, inventory shrinkage is a serious problem to modern retail industry, as it significantly affects profitability of the company and its key indicators and results in consumer losses because of increased prices.

Firstly, inventory shrinkage ...

- Abstract

Planning is an important aspect in businesses today. Any business that does not take initiative to plan for its future is likely to face challenges which could otherwise be identified during a desk review and planning process (Bose 2002). This document is a continuation to the business plan for Dalnim but now covering Statistics to be used in measuring quality, capacity planning md facility location, an aggregate plan to maintain competitive advantage, work system design, project life cycle, and project management and to inventory planning and management. This is with a view to make the business and financial plan operational.

- Background information

Dalnim was ...

- For Randy Hetrick of Fitness Anywhere, the major challenge was maintaining appropriate levels of inventories while controlling costs. What is meant by this statement?

Randy Hetrick of Fitness Anywhere is in the business of providing specialized exercise equipment. He is the inventor of an exercise device the TRX suspension trainer. He therefore is in the business of production of this device as well. Randy had to come across several issues related to inventory as he couldn’t hold big quantities of his product as the demand for the device was not been established in the market and at the same time producing in smaller quantities was relatively expensive. So controlling the costs while maintaining substantial levels of inventory became challenging for Randy. In ...

Question 1

Explain why Nestlé’s supply chain should cope with the market challenges? The management should be keen to improve its supply chain network due to the improvements in technology that have come in the recent past. This is especially through the use of the internet to facilitate a greater integration and globalization of its market. If the management does not try to meet competition at its level, or at a higher level it will be phased due to lack of progression. The market today is especially attracted to the use of new technologies in the provision of goods. The management ...

1) The new process by McDonald’s helps to deliver fresher hamburgers to its customers. Unlike the old make-to-stock process, where hamburgers were prepared before customers placed orders, the new process allows hamburgers to be assembled after the order is placed. The key elements of the new system are the use of technology for storing ingredients and the response time of 15 seconds. Despite the improvement in hamburger freshness achieved with the new process, McDonald’s hamburgers are still not the freshest. Wendy’s is using a slower process, in which hamburger is cooked from raw ingredients after the order ...

When companies at the end of a supply chain make changes in their orders, whether they add or reduce them, these changes are said to be progressively amplified for operations as they move back through the supply chain. The changes create some sort of a ripple effect throughout the length of the supply chain moving back from where those production decision changes have been made.

Bullwhip effect was the description coined by Procter and Gamble management when they noticed an amplification of information distortion as order information was relayed back up the supply chain (Buchmeister, et al, 2008). It is also ...

Vanity Products Company

1: The logistics service and cost constraints imposed on VP by the chain store’s latest demand. The latest request by the chain stores requires that every order should be delivered within five working days regardless of the ordered quantities. The fact that the new orders will be placed directly by the consumers through the EDI software means that they will not be consolidated and may be irregular on the choice of products. The company will experience an increase in the dispatch trips that might even need expansions in the delivery capacity and this will result into an increase ...

Referring to the latest 10Q(Quarterly) Filings by Colgate Palmolive, i.e. one filed on 24th October, 2013 and 25th July, 2013, we shall be analyzing the changes in working capital and cash management strategies of the company:

Changes in Working Capital:

I) Working Capital Position as at 30th June, 2013: Beginning with the Quarterly Report filed on 25th July, 2013t, and the company ended the quarter with the total current assets of $4867 Million. Both receivables and inventories contributed with the maximum share to the total current assets, with an amount of $1778 and $1440, respectively. The total cash position of the ...

Golf Corporation

Liquidity Ratios: Current Ratio for the year 2012 = Current Assets / Current Liabilities Current Ratio for the year 2012 = 2,000 / 2,000 Current Ratio for the year 2012 = 1 Current Ratio for the year 2013 = Current Assets / Current Liabilities Current Ratio for the year 2013 = 3,000 / 4,000 Current Ratio for the year 2013 = 0.75 Quick Ratio for the year 2012 = Current Assets – Inventory – Prepayments / Current Liabilities Quick Ratio for the year 2012 = 2,000 - 500/ 2,000 Quick Ratio for the year ...

I always store commodities such as toilet paper, toothpaste, shampoo, water bottles, etc. in places like drawers, baskets, shelves, etc. I make sure to check the storage twice a month to make sure there is enough of each product. If there is a need, I plan to buy the required products online or from retail stores. I always take care of the expiry date of the products before buying as some of the items have a lead time for several days. Or, when I buy earlier than expiry of existing products, it causes over stocking and exhaustion of space. For efficient management ...

[Author Name(s), First M. Last, Omit Titles and Degrees] [Institutional Affiliation(s)] [Include any grant/funding information and a complete correspondence address.]

Consumers’ purchasing behavior varies according to the product, customer service, physical location of the consumers, and mainly, the product price. The level to which the product price affects consumers purchasing behavior is known as price sensitivity, and it varies depending on the consumers and the products. Price sensitivity also depends on the consumer’s income, such as, fixed or fluctuating income, and time to inquire a product. Consumers with less income are more sensitive towards product price. ...

Executive Summary

This paper espouses the application of lean management system of Just in Time Distribution (JITD) by a manufacturing company called Barilla Spa. At the onset, the fundamental problem in the operations of Barilla is that there are various fluctuations in their pasta orders. These are brought about by several factors like transportation discounts, volume discount, promotional activity, the lack of a minimum or maximum order quantities, product proliferation, long order lead times, poor customer service rates, and poor communication. This case considers all these problems to come up with a better system which primarily involves a more effective and efficient approach to shorten ...

Improving large format printing in Marketing Advantage

Introduction Marketing advantage is a private company (family owned), based in Salt Lake City, Utah. The major activities of the company include vehicle wrap which is mainly vehicle sales advertising, contract printing done on behalf of external marketing companies which involves customized printing on small marketing type items and lastly , large format printing done on behalf of local companies and national resellers which include printing of flags, banners, signs, tents, giant inflatable and tradeshow displays. All the operations of the company currently takes place on a 19,000 square facility and a total of thirty employees who are both full time ...

Answer 1)

The role of each of the financial statement is explained hereunder: Income Statement: Also known as Profit and Loss Statement, income Statement, indicates the net profit or loss of the company during the year.

Balance Sheet:

Also known as the Statement of the Financial Position, Balance Sheet provides information about the financial position of an entity at a given date. Balance Sheet consist of following items: - Assets - Liabilities - Equity It works on the principle of Assets= Liabilities+ Equity

Cash Flow Statement:

Cash Flow Statement provides information about actual cash transactions in the entity held during the ...

Introduction

Material Requirements Planning (MRP) and Kanban control systems are one of the most prominent production planning and inventory control systems of today. These systems are the most popular implementations of push and pull strategies respectively. Speaking of MRP, it is a material control system that tries to maintain adequate inventory levels to ensure that the required materials are available, when needed. MRP is used where there are multiple items with complex bills of materials. It is not suited for continuous processes that are tightly linked.

The major objective of an MRP system is to simultaneously:

- Ensure the material availability, components, and products for customer delivery and planned production. ...

IT Management

Objective Technology is one of the cornerstones for the success of any business organization in the contemporary market. However, technology is dynamic in nature, and changes rapidly from time to time. To keep up with these changes, an organization should keep updating its technology; otherwise, its technology becomes obsolete. This is particularly relevant in the case of publishing companies. In this case, the objective is to assess the implications of hiring a new leader to oversee the transformation of the information technology department in the Penguin Group Publishing Company. The company also intends to implement a reorganization and downsizing strategy ...

This section follows the clear understanding of what the website is all about. The target audience have been selected and what needs to be on the webpage. After choosing the target audience, making a decision on which content for the audience is also important. Getting it right what the audience wants is a key component to designing a successful website. This section is going to detail the content and functional requirements of the website . This section helps in gathering the most important part of a website which is the content. The structure on how the website will be structure and organized will be ...

Index of Learning Styles & Learning Style Inventory

I as a visual learner has studied about the learning styles in context with two topics that are Index of Learning Styles & Learning Style Inventory. I have used the Penn State study that was subjected to a study conducted to gauge the reliability and validity of the Felder-Soloman Index of Learning Styles (ILS). The data were of students that was collected from three different colleges and that of engineering, liberal arts and education to broaden the scope of this study that was being conducted (Solomon & Felder, 1999). While studying this paper, I analyze that over 500 students participated in this ...

Introduction

Traditional and well-known manufacturing companies often struggle to implement newer process changes and manufacturing practices in business. Economic order quantity was a popular concept in the early part of 20th century. Almost all companies then used economic order quantity purchasing policy. Most of the companies probably benefitted from implementing economic order quantity (EOQ), but some failed as it was not relevant for the product type and industry. In the later part of 20th century, many new manufacturing process techniques came into limelight. Just in Time system, Toyota Production System, Theory of Constraints, MRP and ERP systems, TPM, Lean manufacturing and ...

Improving large format printing in Marketing Advantage

Introduction Marketing advantage is a private company (family owned), based in Salt Lake City, Utah. The major activities of the company include vehicle wrap which is mainly vehicle sales advertising, contract printing done on behalf of external marketing companies which involves customized printing on small marketing type items and lastly , large format printing done on behalf of local companies and national resellers which include printing of flags, banners, signs, tents, giant inflatables and tradeshow displays. All the operations of the company currently takes place on a 19,000 square facility and a total of thirty employees who are both full time ...

Analysis

Introduction Product availability is one way through which companies thrive to satisfy their customers. This requires the adoption of an inventory management strategy that is efficient, effective and focuses on the customer. Inventory control strategies enable companies to provide different amount of commodities to their customers depending on their needs. The complexities and dynamism of the 21st century have forced companies to adopt policies that put the customer at the forefront of every business decision. Businesses that intend to provide quality service to their customers should ensure that they implement strategies that supply optimum stock levels to their ...

Discussion

Answer to the discussion question The in-stock availability strategy adopted by a firm determines the amount of service that its customers receive. Firms typically assign greater availability to those products that attract the highest volume of sales and profitability levels. . They maintain different availability levels of inventory for commodities that they sell. Customer service depends on the products that the customers will purchase. The service that is rendered to the customer thus relies to a great extent on the blend of products that he or she purchases. This means that customers with different shopping lists going into the same store ...

Inventory Costs

Introduction Production can be described as a flow concept, which measures the volume of output per unit of time. The efficiency of production refers to the proportion of total resource content that can be transformed into a product that can be sold to the market. There are a number of ways that can be used to improve the efficiency of production techniques that are used by the firm. These strategies are either qualitative or quantitative in nature. They are the subject of discussion in this report.

Raw materials refer to the inputs used in developing the final product. They are the ...

Introduction

The management and operation of enterprises with multiple chain stores often presents unique challenges. The high number of customers, transactions and supplies that are experienced in these chain stores often requires a proper flow of information. This requires the development and implementation of an appropriate information system that meets the needs of the enterprise.

Internal actors in the business process

These refer to forces within the enterprise that facilitate the integration of all activities pertaining to the business. The enterprise offers several products, to different customers in different locations. The information system will work to ensure that the right products are availed to customers in different ...

As Vice President of Supply Chain Management System I cannot help drawing the attention of company to the lean production that was founded as an interpretation of the ideas firstly implemented by Toyota production system. The concept of "Lean" united two different approaches, while aligning the improved quality, high-speed processes and a wide range of goods and services. This concept is oriented on attainment of the lower costs ensuring high quality and high speed of processes. Modern aspects of the concept “Lean” play the vital role in company logistics and its implementation. The transportation is the source of logistic ...

During Christmas season every year the pressure or retailers to deliver goods right today or the next day increases many folds. The case is no different for the apparel industry where the seasonal demands as well as changing fashions make it mandatory for the retailers like Marks & Spenser (M&S) to have extremely robust warehousing arrangements through out the supply chain. Most retailers particularly those who are online, depend on the strength of their supply chain network and warehousing, like logistics, in a vital part of the overall business model. In this note we will delve deeper into application of warehouses ...

Introduction

Managing the inventories in the modern manufacturing operations is a tough process. Many manufacturing plants, both big and small, are facing problems in managing their inventory properly. Hence, companies are exploring new systems and software that can help in managing the inventory properly. One of the most popular software that is used to efficiently manage inventory is the Material Requirement Planning or MRP. MRP helps the companies in taking informed decisions regarding the efficient management of the company’s inventory (Vonderebse & White, 2013). Other than helping companies in efficiently managing their operations, they also help them in improving the ...

With reference to the goals that management avenues will try to explore, one of their concerns will be the periods of time that they will take in making money literally. This can be noted as an accounting concern that details to the application of the necessary data in attempting to discover and influence the company’s conversion and turnover cycles. Essentially, these cycles are some of the very important metric computations (Bragg, 2010). Likewise, these are based on the questions that management might have on the functionality, performance and the success of the company. It will equally be important ...

- Introduction Nectar Sweets Plc is a company with the main shop in Hong Kong. It is experiencing cash flow problems and is seeking an increase in the overdraft facility from the bank. Statements of the company reveal that its operations are profitable, but it is not efficient in collecting debt. The report identifies and analyses the company’s problems and recommends possible solutions. In addition, it uses financial ratios to assess the performance of the firm. - Problems facing the company - Nectar Sweets Plc has a problem in collection of its accounts receivables. The company takes a ...

The difference between both the methods of measuring inventory is the way in which the cost of goods sold is calculated. A company ideally does not keep a track of every single piece of incoming and outgoing goods hence it is required to calculate the inventory at the end of an accounting period. There are two methods of calculating the inventory that is FIFO and LIFO. Fifo means first in first out, so whatever goods come in first are sold in the same order. Hence the goods that were purchased last will remain in the inventory. In case of LIFO, ...

Using the following imaginary company data the differing effects using LIFO vis-à-vis FIFO will be shown and explained. Assume a physical count determined 20 units in ending inventory. The first-in-first-out (FIFO) method assumes that the first units purchased are the first unit sold and to be expensed to cost of goods sold (COGS); therefore, the units remaining in ending inventory (EI) are comprised of the latest units to be purchased. The last-in-first-out (LIFO) method assumes the latest units purchased are the first units to be sold and to be expensed to COGS; therefore, the units remaining in EI ...

Business

With increased commercialization and enhanced professionalism in retail marketing, point of sale systems have become ubiquitous. A point of sale system includes everything that may be required for a salesman to convert an order into a sale. Clients can consider three iPad-based point of sale systems – Square Register, Shopify and Bindo for small and medium businesses.

Square Register

The point of sale system from Square register consists of a tablet. The system provides basic point-of –sale tools and credit card processing with a minimal cost. There is no monthly fee, and the only charge is the prevalent swipe rate. The system is ideal for those ...

Summary

The car market in China is facing a massive slow down in recent times. The car sales have dropped to a two year low. There are three major reasons for this break down in the volume of sales. First of all, there is a general economic slow-down that the country is experiencing at present. Secondly, the competition from international field has increased immensely in the last few years and thirdly, the environmental concerns have given rise to the necessity of new legislations that restrict the number of cars owned by a person. It is worthy of note that the major losers in this ...

Literature Review:

Reverse Logistics has been gaining importance of all sorts of businesses all across the globe. Tremendous research activities are coming up daily, suggesting new frameworks and models suitable for each business type and situation. Warehousing and Reverse Logistics are important to each other as they are in the direct relationship. The major issues in this regard are the lesser dedicated space for the returned items, too much paper work involved in getting the items back to the warehouse and from the warehouse to the production units, too much extensive process for tracking the reasons of return to the warehouse, ...

1 See the attached excel sheet 2The three sections of the cash budget are the receipts section in which all the cash receipts and all the credit receipts which are to be collected in a particular month are to be grope together. Then there can be other inflows of cash resulting from sale of assets or issuing new stock. Together these form the total receipts section. The second section comprises of the cash disbursements section. In this section any outlays of cash are recorded from operating activities and non operating activities and a total cash outflow number is calculated. The ...

Following the increased wastage in the inventory management of the organization, the organization focuses on changing its type of inventory management from ABC technique to just in time technique. To make this change the company has made effort to make the employees understand the reason as to why the change is required. The process of the change is similar to Lewin’s model of organization change. First, the organization has seen has seen increased wastage in its inventory management by the use of the ABC analysis technique. To enhance acceptability of the change the organization has involved the ...

Business

Introduction Smitheford pharmaceutical is a pharmaceutical company that was founded in 1878 by Robert Smitheford, who was a general during the civil war. The company expanded to become a large firm and even opened branches in cities such as Colorado, Durango among others. However, as time went by, the technological dynamics and change in pharmaceuticals industry rules have impacted the company negatively and, therefore, needs to review how it conducts its business. In addition, though, the company utilizes employee incentives to ensure and enhance employee satisfaction, the lack of proper implementation of the quality management philosophies have not helped the ...

- Return on investment commonly referred to as ROI is a profitability ratio that determines how much an investor or a company gets form an investment. In this case, it is calculated through use of net profits form the production process and the cost of investment.

=1,005,000/5,000,000=20.1% - Just-in-time purchasing advocates zero inventories and stock less production within an organization through just in time purchasing and production. The objective is to purchase goods so that stocks are delivered immediately before the production process starts. As such, the method calls for strong supplier relationships to ensure that the ...

On the other hand, Kanban is pretty much the very opposite of MRP. Kanban does not pre-forecast the demands of the order, it does not even need high inventory. In fact, Kanban is a method to control inventory (Liker & Meier, 2004). Kanban is a sign to notify the production line whenever they need to replenish something (Liker, 2004). When an item is taken by one division, a Kanban card is sent to the previous division to notify that the item was taken and needs to be replenished. The card itself will also show detailed information about the requested items. The items revolving ...

Introduction

The word “inventory” has been defined in different ways. One definition that has been chosen and seems to be more suitable, “Inventories refer to stockpiles of raw materials, components, supplies, work in process, and finished goods that result at various points throughout the production and logistics channel of a company (Muller, 2003). A proper inventory management is of great importance n any business organization. The future of business organizations relies on how the top management specifies and takes into account inventory management in relationship with the objectives of the company. Some of the primary reasons why business organizations hold ...

Introduction

Beck Depression Inventory II is multi-choice self-report inventory with 21 questions that is used to measure levels of depression. The Beck Depression Inventory II (BDI-II) was created in 1996 as an improvement over the Beck Depression Inventory I (BDI-I). BDI-II is used to evaluate the occurrence and magnitude of depression in adolescents and adults. The changes to BD-II were initiated because of the new guidelines for diagnostic criteria redefined by the American Psychiatric Association’s publication. BD-II follows the criteria outlined in the Diagnostic and Statistical manual of Mental Disorders. BD-II is not used as a definite diagnosis of depression. ...

Inventory Management

Inventory Management Inventory refers to raw materials, finished goods and work-in-progress (WIP) that form part of a business’s assets which will be ready or are ready for sale. Inventory turnover is the primary revenue generation source, hence making inventory an important asset for most businesses. Holding large quantities of inventory is undesirable for most businesses since the holding costs are high. The holding costs of inventory include storage costs, spoilage obsolescence costs, insurance costs, inventory tracking, etc. However, possessing very little inventory is not good either since the business runs the risk of not meeting the customer demands, ...

IFRS is a set of principles of international accounting standards that regulate transactions and events reported in financial statements. Unlike GAAP, IFRS is based on principles rather than rules of accounting standards. IFRS includes all the interpretations and standards issued by the IASB and IAS, and IASC; it allows accountants to have greater flexibility and discretion than in GAAP when preparing financial reports (International Accounting Standards Committee, 2001). IFRS is crucial for accountants as it assists in development of transparent, comparable, and quality financial statements through the stipulated principles. It takes the needs of emerging markets in cases of international ...

How to Inventory Office Supplies

It is evident that the development of technology has influenced a number of issues among new workers. It is evident that most of the new employees within organizations do not know how to use gears because they lack skills. Cindy, my organization’s deputy president, has requested me to train wo of my fellow employees on office supplies inventory maintenance at the workplace. I will ensure that they comprehend its importance This is a major way that the trainees will learn workplace skills and capabilities. I will ensure that the two trainees learn the basic skills of computer technology. This will ...

Accounting for perpetual inventory system has various advantages and disadvantages. In terms of advantages, it allows for accurate restocking since all changes in inventory levels recording follows the real time. Ideally, this means that the recording occurs both when the inventory is purchased and sold. In so doing, it allows one to have the ability have accurate information thus able to identify inventory items that are running out of stock (Epstein, 2011). In addition, it helps in provision of accurate interim financial statements. In most cases, the inventory under the periodic inventory system in both cost-of goods sold ...

There are only two forms of inventory errors that can be found in the financial statements. One is understatement of the inventory available, and the other is overstatement of the inventory available. These errors effect both the income statement (profit and loss account) and statement of financial position (balance sheet) of a company. An overstatement of inventory will reduce the cost of sales. It will show that less inventory has been used up in generating the sales for a fiscal year or an accounting period. This will show the wrong increase in the gross profit of the company, and ultimately ...

Executive Summary

Zara is one of the largest retail fashion companies that has grown from an “unfashionable corner of disheveled Spain” to “fast fashion” and innovation in handling seasonality. The company aims to enact community and environmentally friendly practices in its operations and ensure that Corporate Social Responsibility (CSR) forms the main core of its supply chain management relationships. With regard to financial segment, the capital expenditure of Zara is expected to reach approximately $1.908 billion, primarily on new retail space. The company expects to launch 450-500 new stores in 2014 while “selectively absorbing” 80-100 small stores into larger nearby ...