Marketing
14th Edition
ISBN: 9781259924040
Author: Roger A. Kerin, Steven W. Hartley
Publisher: McGraw-Hill Education
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Question
Chapter 12.2, Problem 12.3LR
Summary Introduction
To determine: The inventory carrying cost would be high, low, or non-existent for an accounting firm with certified public accountant (CPF).
Introduction:
Inventory Cost: It refers to the entire cost involved in the process of manufacturing the goods for sale.
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You are given the following information regarding sales and inventory levels over time for your firm:
Sales
$12,502.00
2011
$13,456.00
2012
$17.845.00
2013 $15,326.00
2014
Year
2010
$7.270.83
$9,237.10
$8,108.59
$14.464.00 $7.722.41
Given this information, determine the level of safety stocks that the firm holds.
O $1.512.02
$1.242.55
O$1.309.91
O $1,444.65
Inventory
$6,843.44
O $1,377.28
What are the shortcomings in every company's inventory management? And how a business should deal with it.
Why would a "Just in Case" or traditional inventory management practices be preferred to a "Just in Time" inventory management?
Chapter 12 Solutions
Marketing
Ch. 12.1 - Prob. 12.1LOCh. 12.2 - Prob. 12.2LOCh. 12.2 - Prob. 12.1LRCh. 12.2 - Prob. 12.2LRCh. 12.2 - Prob. 12.3LRCh. 12.3 - Prob. 12.3LOCh. 12.4 - Prob. 12.4LOCh. 12.4 - Prob. 12.4LRCh. 12.4 - Prob. 12.5LRCh. 12.5 - Prob. 12.5LO
Ch. 12.6 - Prob. 12.6LOCh. 12.6 - Prob. 12.6LRCh. 12.6 - Prob. 12.7LRCh. 12.6 - Prob. 12.8LRCh. 12 - Prob. 1AMKCh. 12 - Idle production capacity may be related to...Ch. 12 - Prob. 3AMKCh. 12 - Prob. 4AMKCh. 12 - Prob. 5AMKCh. 12 - Prob. 6AMKCh. 12 - Prob. 7AMKCh. 12 - Prob. 8AMKCh. 12 - Prob. 9AMKCh. 12 - Prob. 10AMKCh. 12 - Prob. 1BYMPCh. 12 - Prob. 2BYMPCh. 12 - Prob. 3BYMPCh. 12 - Prob. 1VCCh. 12 - Prob. 2VCCh. 12 - Prob. 3VCCh. 12 - Prob. 4VCCh. 12 - Prob. 5VC
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- If a company uses the periodic inventory system, should the date of the physical inventory correspond to the end of an accounting period? Explain why or why not.arrow_forwardYou are given the following information regarding sales and inventory levels over time for your firm Year 2010 Sales $12,502.00 $13,456.00 $17.945.00 $15,326.00 $14,464.00 Given this information, determine the level of safety stock that the firm holds. 2011 2012 2013 2014 $1.131.72 $1.193.09 $1,254.46 O$1,070.35 O $1.008.98 Inventory $6,855.36 $7 282 75 $9,249.02 $8.120.51 $7.734.33arrow_forwardWhich of the following is not true in terms of contributing positively to the business model of leasing assets for a lessor? Select one: a. Often a lessor can sell an asset that is returned at the end of the lease for more than the residual value included in pricing the lease. b. A lessor cannot claim capital cost allowance on assets it leases. c. A lessor who manufactures assets can use leasing as a way to sell its inventory to lessees that otherwise would not be able to afford to purchase the asset from them outright. d. A lessor retains legal ownership of assets it leases which is important in situations where lessees do not honour their lease commitments. e. None of the above.arrow_forward
- Which report accounting method shows an overview of the money received and spent for a specific period? A. Hybrid basis B. Accrual basis C. Modified basis D. Cash basisarrow_forwardwhat effect has inventory management (as separate from increasing sales) on cash? Why/how can inventory management be critical? Investigate the costs of owning inventory.arrow_forwardExplain if a policy, a standard, a procedure, or a guideline should be used to ensure inventory information systems remains up-to-date within an organization?arrow_forward
- The following two diagrams represent different inventory and cash payment policies. Please use whatever real-life business you believe is suitable to explain the differences between the two types of business models. Make sure you elaborate on each of the four cardinalities below.arrow_forwardWhich of the following ratio that gives an idea of company's ability to payback its short term liabilities with its short term assets? a. Current Ratio b. Return on Equity c. Quick Ratio d. Gross profit ratioarrow_forwardSuppose you have been given the task of reducing inventory in your company, without negatively impacting customer service. What actions might you be able to take to accomplish this task?arrow_forward
- Advantages of preparing cash budget would not include one of the following: a. Debtors of the business can be allowed more time to make payment b. If shortage of cash is expected, overdraft facility can be arranged c. Surplus cash can be put to profitable uses if surplus is expected to occur d. Time is available to identify the future sources of finance ------fast plzarrow_forwardIdentify three items often found in Required Supplementary Information. (Accounting for Governmental and Not-for-Profit Organizations)arrow_forward1、Explain three reason some goods are exempted in the Harmonized Sales Tax HST by government 2、State four kinds of terms of sale. Which one do you prefer and why? 3、State five reasons why accountants must maintain high accounting standardsarrow_forward
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