Question 1: What is “The additional cost required to establish separate departments for warehousing, shipping and inventory control is considered a necessary cost for the added benefit of control over inventory.” Discuss this statement in the light of existing revenue cycle of RCE Limited. please find the document attached for more info.
Question 1: What is “The additional cost required to establish separate departments for warehousing, shipping and inventory control is considered a necessary cost for the added benefit of control over inventory.” Discuss this statement in the light of existing revenue cycle of RCE Limited. please find the document attached for more info.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 1: What is “The additional cost required to establish separate departments for warehousing, shipping and inventory control is considered a necessary cost for the added benefit of control over inventory.” Discuss this statement in the light of existing revenue cycle of RCE Limited. please find the document attached for more info.
![The Revenue Cycle of RCE Limited. RCE Limited is a Queensland based wholeseller that deals in the
update the accounts receivable subsidiary ledger and general ledger from his computer terminal.
rafting and camping equipment. In particular, RCE Limited serves outdoor sports camping retailers
After the records are updated, the clerk files the stock release and shipping notice in the accounts
throughout the Queensland. Mr. Chris Doubler has recently joined the accounting department of
receivable department. Sometimes, the account receivable clerk reconciles the quantities from the
RCE Limited as a head of the department. Mr. Doubler gathered a wide range of data from his
sales order and adjusts the account receivables. Cash Receipt Procedures of RCE Limited The
deparment using different sources to improve the operations of his departmetn. After analysing this
data, Mr. Doubler is concerned about the revenue cycle of RCE Limited. You are running an
payments of customers come directly to the general mailroom along with other mail items. The mail
clerk performs the different tasks, including (1) sorting the mail, (2) opening the customer payment
accounting consultancy and considered as the best consultant on the accounting information
envelope, (3) removing the customer's check and remittance advice, and (4) reconciling these two
system. Therefore, Mr. Doubler approached you to evaluate their revenue cycle. During the initial
documents. To control the checks and remittance advices, the clerk manually prepares two hard
meeting, you suspect that the business activities and related data processing operations of the
copies of a remittance list. He sends one copy to the accounts receivable department, along with the
revenue cycle of RCE Limited might not closely associated with providing goods and services to
customers and collecting their cash payments. You further elaborated that the revenue cycle can be
corresponding remittance advices. The other copy of the remittance list accompanies the checks to
the cash receipts department. Once the checks and remittance list arrive in the cash receipts
categorised into (1) sales order processing procedures (SOPP), and (2) cash receipts procedures
department, the treasurer performs the following tasks: (1) reconciles the documents, (2) endorses
(CRP). Consequently, you requested the head of the accounting department to describe the SOPP
the checks, (3) manually prepares three hard copies of a deposit slip, (4) updates the cash receipts
and the CRP of RCE Limited separately. This description is given below. Sales Order Procedures of
journal and the general ledger from his computer terminal, (5) sends the checks and two copies of
RCE Limited The sales department encourages its customers to forward the orders in any form,
the deposit slip to the bank, and (6) files the third copy of the deposit slip and the remittance in the
including mail, e-mail or fax. The sales clerk first converts these sales order into the standardised
department. HI5019 T1 2021 Assessment 1: Individual Assignment Page 4 of 9 The accounts
sales order. For this purpose, the sales representative requests the missing information, if any. (In
receivable clerk receives the remittance list and remittance advice from the mailroom and reconciles
the light of our discussion during the Interactive Tutorials, please mention this missing information.)
these two documents. He then updates the accounts receivable subsidiary ledger and the general
ledger. Then, account receivable files the two documents in the department.
When the order is received, the sales clerk checks the customer's creditworthiness of the customer
from his computer terminal. Sales clerk thinsk that checking the accounting record is not technical
and he can perform these duties efficiently. Two years ago, the sales clerk requested the accounting
department to provide him with a list of customers whose account receivables are written off. The
sales clerk is still using this information to check the creditworthiness of the customers. The sales
clerk did not differentiate the new customers from the existing customers and he is using the same
HIS019 T1 2021 Assessment 1: Individual Assignment Page 3 of 9 procedure to check the
creditworthiness of the new customers. The customer's order is rejected if the customer's credit is
not verified. The sales order processing is started after the credit verification. In particular, the sales
clerk records the approved standardised sales order in the sales order system through his computer
terminal. A digital copy of the order is distributed to the warehouse and the shipping department
terminals for further processing. The computer system automatically records the sale in the sales
journal. The clerk files the hard copy of the customer order in the sales department without
reviewing the entry. Then, the receipt of the digital sales order prompts on the computer terminal of
the warehouse manager. This digital sales order has the associated stock release and the shipping
notice. These documents play an important role in the transition processing system. The warehouse
manager has access to these documents. For further processing, the warehouse manager prints out
the sales order, the stock release, and the shipping notice. Using the stock release copy, a
warehouse clerk picks the selected items from the shelves and sends them to the shipping
department along with the stock release and the shipping notice. The warehouse manager then
updates the inventory subsidiary ledger and the general ledger control account from his computer
terminal. The shipping clerk receives the physical stock, the stock release, and the shipping notice
from the warehouse manager. The shipping clerk matches them to the corresponding digital sales
order displayed on his terminal. If everything matches, he prints out three hard copies of the bill of
lading and a packing slip. The shipping clerk sends two copies of the bill of lading and the packing
slip, along with the goods, to the carrier. The stock release copy and the shipping notice are sent to
the accounts receivable department. The third bill of lading copy is filed in the shipping department.
Account receivable clerk receives the stock release and shipping notice from the shipping clerk.
Then, the accounts receivable clerk manually creates a hardcopy invoice, which is immediately
mailed to the customer. After mailing the invoice, the clerk uses information on the stock release to](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a578e4e-e936-4eb4-9369-555eafb254ab%2F9d991e5c-f166-478b-8666-7fc57dc90244%2Fqzk7v1n_processed.png&w=3840&q=75)
Transcribed Image Text:The Revenue Cycle of RCE Limited. RCE Limited is a Queensland based wholeseller that deals in the
update the accounts receivable subsidiary ledger and general ledger from his computer terminal.
rafting and camping equipment. In particular, RCE Limited serves outdoor sports camping retailers
After the records are updated, the clerk files the stock release and shipping notice in the accounts
throughout the Queensland. Mr. Chris Doubler has recently joined the accounting department of
receivable department. Sometimes, the account receivable clerk reconciles the quantities from the
RCE Limited as a head of the department. Mr. Doubler gathered a wide range of data from his
sales order and adjusts the account receivables. Cash Receipt Procedures of RCE Limited The
deparment using different sources to improve the operations of his departmetn. After analysing this
data, Mr. Doubler is concerned about the revenue cycle of RCE Limited. You are running an
payments of customers come directly to the general mailroom along with other mail items. The mail
clerk performs the different tasks, including (1) sorting the mail, (2) opening the customer payment
accounting consultancy and considered as the best consultant on the accounting information
envelope, (3) removing the customer's check and remittance advice, and (4) reconciling these two
system. Therefore, Mr. Doubler approached you to evaluate their revenue cycle. During the initial
documents. To control the checks and remittance advices, the clerk manually prepares two hard
meeting, you suspect that the business activities and related data processing operations of the
copies of a remittance list. He sends one copy to the accounts receivable department, along with the
revenue cycle of RCE Limited might not closely associated with providing goods and services to
customers and collecting their cash payments. You further elaborated that the revenue cycle can be
corresponding remittance advices. The other copy of the remittance list accompanies the checks to
the cash receipts department. Once the checks and remittance list arrive in the cash receipts
categorised into (1) sales order processing procedures (SOPP), and (2) cash receipts procedures
department, the treasurer performs the following tasks: (1) reconciles the documents, (2) endorses
(CRP). Consequently, you requested the head of the accounting department to describe the SOPP
the checks, (3) manually prepares three hard copies of a deposit slip, (4) updates the cash receipts
and the CRP of RCE Limited separately. This description is given below. Sales Order Procedures of
journal and the general ledger from his computer terminal, (5) sends the checks and two copies of
RCE Limited The sales department encourages its customers to forward the orders in any form,
the deposit slip to the bank, and (6) files the third copy of the deposit slip and the remittance in the
including mail, e-mail or fax. The sales clerk first converts these sales order into the standardised
department. HI5019 T1 2021 Assessment 1: Individual Assignment Page 4 of 9 The accounts
sales order. For this purpose, the sales representative requests the missing information, if any. (In
receivable clerk receives the remittance list and remittance advice from the mailroom and reconciles
the light of our discussion during the Interactive Tutorials, please mention this missing information.)
these two documents. He then updates the accounts receivable subsidiary ledger and the general
ledger. Then, account receivable files the two documents in the department.
When the order is received, the sales clerk checks the customer's creditworthiness of the customer
from his computer terminal. Sales clerk thinsk that checking the accounting record is not technical
and he can perform these duties efficiently. Two years ago, the sales clerk requested the accounting
department to provide him with a list of customers whose account receivables are written off. The
sales clerk is still using this information to check the creditworthiness of the customers. The sales
clerk did not differentiate the new customers from the existing customers and he is using the same
HIS019 T1 2021 Assessment 1: Individual Assignment Page 3 of 9 procedure to check the
creditworthiness of the new customers. The customer's order is rejected if the customer's credit is
not verified. The sales order processing is started after the credit verification. In particular, the sales
clerk records the approved standardised sales order in the sales order system through his computer
terminal. A digital copy of the order is distributed to the warehouse and the shipping department
terminals for further processing. The computer system automatically records the sale in the sales
journal. The clerk files the hard copy of the customer order in the sales department without
reviewing the entry. Then, the receipt of the digital sales order prompts on the computer terminal of
the warehouse manager. This digital sales order has the associated stock release and the shipping
notice. These documents play an important role in the transition processing system. The warehouse
manager has access to these documents. For further processing, the warehouse manager prints out
the sales order, the stock release, and the shipping notice. Using the stock release copy, a
warehouse clerk picks the selected items from the shelves and sends them to the shipping
department along with the stock release and the shipping notice. The warehouse manager then
updates the inventory subsidiary ledger and the general ledger control account from his computer
terminal. The shipping clerk receives the physical stock, the stock release, and the shipping notice
from the warehouse manager. The shipping clerk matches them to the corresponding digital sales
order displayed on his terminal. If everything matches, he prints out three hard copies of the bill of
lading and a packing slip. The shipping clerk sends two copies of the bill of lading and the packing
slip, along with the goods, to the carrier. The stock release copy and the shipping notice are sent to
the accounts receivable department. The third bill of lading copy is filed in the shipping department.
Account receivable clerk receives the stock release and shipping notice from the shipping clerk.
Then, the accounts receivable clerk manually creates a hardcopy invoice, which is immediately
mailed to the customer. After mailing the invoice, the clerk uses information on the stock release to
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