Need Help on the following question. Question #1 You have been hired by the CEO of a soon-to-be-opened bookstore to develop procedures to help control inventory. List, describe, and defend four procedures you recommend be implemented to control inventory. As part of your response, be sure to describe any potential costs associated with these procedures.

Need Help on the following question. Question #1 You have been hired by the CEO of a soon-to-be-opened bookstore to develop procedures to help control inventory. List, describe, and defend four procedures you recommend be implemented to control inventory. As part of your response, be sure to describe any potential costs associated with these procedures.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 2TP: You have decided to open up a small convenience store in your hometown. As part of the initial...

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You have decided to open up a small convenience store in your hometown. As part of the initial set-up process, you need to determine whether to use a perpetual inventory system or a periodic inventory system. Write an evaluation paper comparing the perpetual and periodic inventory systems. Describe the benefits and challenges of each system as it relates to your industry and to your business size. Compare at least one example transaction using the perpetual and periodic inventory systems (a purchase transaction, for example). Research and describe the impact each system has on your financial statements. Decide which system would be the best fit for your business, and support your decision with research.
You have been hired by Johnson and Johnson Corp. this year. Your supervisor approaches you and need you recommendation on the inventory valuation assumption you will recommend for the company to use instead to using Specific Identification method. Instruction: Identify each of the cost flow assumptions that company can use. Explain the advantages and disadvantages of using each of them. Each one will you recommend and Why? What are the characteristics of a Just-in-time inventory system? Explain some advantages and risks of Just-in-time inventory system.
Every day, businesses have to make decisions that affect their bottom line. One such decision pertains to valuing inventory. Imagine that you have decided to open a new electronics store. As one of your first tasks, your accountant has asked you to adopt an inventory cost assumption for inventory valuation. Explain which method you would adopt and why.
You have been asked by your boss to compute the ending inventory using the retail method. Explain the steps that you would use in calculating this.
Assume you're the assistant controller at a bookstore that's run by an independent bookseller. Manual, periodic inventory updating, physical counts at year end, and the FIFO technique for inventory costs are all used by the firm. How would you tackle the question of whether or not the organization should move to computerized perpetual inventory updating? Can you make a compelling case for the advantages of perpetual? Explain.
Distinguish between the periodic and perpetual inventory system. Describe the advantages and disadvantages of both a periodic and perpetual system. Select your favorite merchandising company. Discuss which system you believe would be most beneficial for them and why
The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based on this flowchart Some organizations prefer using alternative two. What are the advantages of using alternative two instead of the alternative one? Be specific. What is the difference between purchase requisition and purchase order? Under what circumstances can you envision management using alternative one rather than alternative two? Some accountants argue that the receiving department should be eliminated. Discuss the objective of eliminating the receiving function. What accounting/audit problems need to be resolved.
identify the correct statement from the following: Weighted average method can be used for inventory valuation in case of items like vintage cars. FIFO method can be used for inventory valuation in case of customized jewelry. Specific cost method can be used for inventory valúation in case of interchangeable goods. Specific cost method can be used for inventory valuation in case of items like customized product as per the request of customer. Environmental reports and value-added statements are: Chapter 5 - IAS 16..pdf A Chapter 5 - IAS 16..pdf A Chapter 4 - IAS 2 i.pdf A 01:59 P EN Y-TI/-V-0 26 ll
Assume that you are a retailer who carries hundreds of items in your store. Explain two (2) factors that you would consider in trying to decide which items you should reduce in your inventory.
This week we study Purchasing related to inventory. There are two types of Inventory Systems, Perpetual vs Periodic. Using your textbook and other sources such as the internet, discuss the following question and respond to a classmates discussion. Discussion Question: Do you believe that all Inventory should be tracked using a Perpetual Inventory System versus a Periodic System, no matter what the inventory item value or quantity is?
First In, First Out Suppose you are the assistant controller for a retail establishment that is an independent bookseller. The company uses manual, periodic inventory updating, using physical counts at year end, and the FIFO method for inventory costing. How would you approach the subject of whether the company should consider switching to computerized perpetual inventory updating? Can you present a persuasive argument for the benefits of perpetual? Explain.
You own a clothing store and use a periodic inventory system. Research like companies in the clothing industry and answer the following questions. Which inventory system is most used in clothing stores, periodic or perpetual? Why can periodic inventory reporting be a better approach to use than perpetual inventory reporting for this type of industry? What are some of the advantages and disadvantages to the periodic inventory method? What other types of businesses may use the periodic inventory method rather than the perpetual method?