Make or buy decision a. Be able to identify relevant costs and benefits b. Be able to prepare a financial analysis and make a decision c. Compute the impact of outsourcing on the company’s overall profits 7. Special orders a. Be able to identify relevant costs and benefits; understand the decision rule b.
| Outsourcing and offshoring | Outsourcing is the aspect of tasking a third party contractor. Offshoring is basically moving the headquarters of a business to another country. | Investipedia.com | Inventory turnover | The inventory turnover ratio is the inventory sold and replenished over a period of time. | Investipedia.com | Just-in-time inventory (JIT) | A plan that is conducted when receiving and producing inventory; maximizing efficiency of warehousing. | Titman, S., Keown, A. J., & Martin, J. D. (2014).
Question B Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss. Week 3 Discussion Questions Question A What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system? Question B How does the treatment of costs differ in ABC systems as opposed to traditional cost systems?
Judgement Case 9-1 – Inventory costs; lower of cost or market; retail inventory method Requirement 1 Theoretically, Hudson should account for the warehousing costs related to its wholesale inventories as a part of inventory. All of the necessary costs associated with preparing, and in this case storing, items for sale are to be included in inventory. The key here is that the warehousing cost is related to a particular set of items and for that reason it is important to account for the warehousing cost with the inventory in order to satisfy the matching principle. The matching principle “requires that revenues and any related expenses be recognized together in the same period” (The matching principle). By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold.
Costing the activity is normally an in-between step in the distribution of overhead costs to products, to acquire more precise product cost information. However, occasionally the activity itself is the cost object of interest. Like for example, manager of a company might desire to know how much the company spends to acquire their raw materials, as input in a sourcing judgment. The activity of acquiring the raw materials incurs costs associated with negotiating prices with suppliers, issuing purchase orders, receiving fabric, inspecting fabric, and processing payments and returns. The steps to product costing are: 1) Identify the cost;
FastFit Case Study Q1-6 General Question 1. Mark the main flows of goods and money in the diagram (above) and employ a key or table of descriptive elements to explain your answer. Chronological flow of activities (Business Process): 1. Customers give orders and purchase products. / Stores receive orders and money and offer products to customers.
What is a financial plan? (1.0 points) A financial plan is a way of organizing your finances so you’ll be able to set and meet financial goals, while making sure you have enough money to spend on things you need. 3. What is income? (0.5 points) An income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.
Businesses require a tool to measure the execution of objectives. As far as the goals of objectives they are supposed to align with a stated vision and mission. Effective objectives ensure that daily activities align with the big picture or if there will be a need to adjust redirect focus. A balanced scorecard is a tool, generated by Robert S. Kaplan and David P. Norton. Authors Pearce and Robinson (2009) suggest, a balanced scorecard “Is a set of measures that are directly linked to the company’s strategy,” “Directs a company to link its own long-term strategy with tangible goals and actions,” and “Provides a framework to translate a strategy into operational terms” (p. 202).
(TCO B) Cite two ways that the accounting function can contribute to the achievement of quality. 6. (TCO C) Compare and contrast the quality philosophies of Deming and Juran. • Page 2 1. (TCO G) Discuss the concept of best practices and their effect on quality management success.
They should rely on the additivity within financial statements- the analyst can rely on the internal discipline of accounting across the three primary financial statements to reduce the possibility of errors from inconsistent assumptions. Seven step forecasting game plan 1. Project revenues from sales and other operating activities 2. Project operating expenses and derive projected operating income 3. Project the operating assets that will be necessary to support the level of operations projected in steps 1 and 2.