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.
What are the production scheduling principles discussed in The Goal? 4. Provide an explanation of the pitfalls, as discussed in The Goal, of using cost accounting data for manufacturing decision
Both merchandising and manufacturing companies normally have multiple inventory accounts. 3. When using a perpetual inventory system, freight charges on goods purchased are debited to Freight-In. 4. If a supplier ships goods f.o.b.
Retrieved from EBSCOhost Consumers base their purchases in their innate needs and their acquired needs. The psychological processed come from the feelings and emotions surrounding the consumer’s decisions when purchasing a product or a service. In this document one process that is analyzed is the financial decisions made by the consumer. What surrounds the decision of a loan, a purchase, an investment or any other financial transaction has much to do with the psychology of the consumer and how they go through the decisions-making process and how they respond to outcomes of those purchases. SkrudupaitÄ—, A., VirvilaitÄ—, R., & KuvykaitÄ—, R. (2006).
BSBCUS501C: Manage Quality Customer Service Assessment 2: Why is it necessary to clearly identify, before designing product and service offerings, customer needs, and what are some of the less obvious service aspects that might inform purchasing decisions? Customers are fully aware that if a company is not able to provide them with a service or offering to meet their needs, one of the competitors will be able to. With this in mind, it is essential for business’ to research and communicate with their customers to gain the relevant feedback required prior to development. Development should reflect research findings and should meet customer and market needs. Internal and external customers provide business with information about how their products are used, new opportunities for their business, trouble-shoot issues with their product, and organise workloads.
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;
The reason of all the expenditures can be done by the financial determination of all the expenses. The budget can be determining the expenses and revenue from the previous year. If the revenues will be higher than last year, the expenditures will be a plus for the store. The comparables of the revenue with the sales plan of the store will be another area to focus. The process of attracting new customers can be an alarming duty for any business.
4. (TCO 6) Discuss the role of intermediaries in B2B. Distinguish between buy-side and sell-side intermediaries. (Points : 35) The major role of intermediaries in B2B transactions is to make sure that buy-side and sell-side conditionals coincide. Buy-side transactions focus on one buyer purchasing goods/services from many different sellers.
The first function starts when the source of the supply is transferred to the producers of the product for the transformation process. Once the producers are finished, a distributor then process orders and prepares items for shipment after a review from the retailer. Retailers then receive the orders placed to put into inventory so that the consumers are able to purchase product. The order processing and management category is designed to offer consistent, objective and auditable inventory assessments for financial reporting purposes for the retailers to be able to compete in labor-intensive industries nationally, customary costing approaches help generate the most accurate collective values for the cost of goods sold and ending inventories (Lockarmy III & Smith,
• Describe the various types of organizational buyers and consumers and the factors that influence their purchasing decisions. Week Three: Marketing Strategy: Product and Price • Describe the relationship between differentiation and position of products or services. • Analyze the impact of the product life cycle on marketing. • Identify the appropriate price strategy that should be used in the development of the strategic marketing plan. Week Four: Marketing Strategy: Place and