intercompany sales after deducting selling and administrative expenses rather than gross profit is to include selling and administrative expenses associated with the intercompany sale in consolidated inventories. Support for the gross profit approach is based on the proposition that consolidated inventory balances should include manufacturing costs only and that generally accepted accounting standards normally preclude the capitalization of selling and administrative costs. 3. When the subsidiary is
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work together as a cohesive unit to produce the desired product for a profit. Altius Directory (2006-2013), “The ultimate purpose of supply chain management is to have a steady flow of inputs into the production unit, reduce the problem of excess inventories and reduce the cost of production errors (Supply Chain Logistics Management, Current Trends section). However, prior to implementing a successful supply chain, it is necessary to determine which strategy is best for your particular industry. A.
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Inventory Proposal QRB/501 May 13, 2013 Inventory Proposal Draft Part of a business’s ability to become successful depends on the business’s ability to properly inventory merchandise needed in its operations. An organization inventory includes ordering, storing, and managing supplies needed to help the organization function efficiently. Improperly managing an organizations inventory can affect the organization
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current assets excluding inventory for every $1.00 in current bills. Martin will not have to rely on selling their inventory to pay their upcoming obligations. Activity group In the activity group Martin Manufacturing has no trend in the inventory category over the last three years(5.2, 5, 5.29). Their inventory turnover of 5.29 for the current year is bad when compared to an industry average of 10.2, this tells me that Martin may have an inadequate finished goods inventory. The Average Collection
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a merchandising business on December 1 and enters into three inventory purchases: December 7 10 units @ $6 cost December 14 20 units @ $12 cost December 21 15 units @ $14 cost Trader sells 15 units for $25 each on December 15. 8 of the sold units are from the December 7 purchase and 7 are from the December 14 purchase. Trader uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on (a) FIFO, (b) LIFO, (c) weighted
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THE MEDICAL DEVICES COMPANY Inventory is one of the most beneficial strategies, a valuable asset, and it can be easily converted into liquid cash without undergoing large cost. In the case of a Medical Device Company, many ask whether there is too much inventory in the system; and the fact is that there is too much inventory in the MDC system. This reflects on the company’s poor formulation of policies and the companies may end up tying working capital, which in turn may cause customer retention
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Financial flexibility– the ability to use its financial resources to adapt to change. Liquidity- the availability of a company’s liquid assets to pay its bills. Cash- the resource on hand to meet planned payments and emergency situations. (current assets includes coins, currency, unrestricted funds on deposit with a bank, negotiable checks, and bank drafts) Cash equivalents- short term highly liquid investments that are readily convertible into known amounts of cash. Cash planning systems- methods
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decision in a company Assets – provide company with future benefits such as cash, a/r, inventory, supplies, prepaid expense (by paying something in advance you have the benefit of it protecting you for the time period, once you use it, it is no longer an asset. Current assets – must to converted to cash/sold/used up/consumed in the business within the year. Listed in order of liquidity. Ex: inventory, a/r, office supplies, temporary investments, prepaid expense Land doesn’t depreciate in
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capacity and inventory. Specifically, on day 0, the factory began operations with three stuffers, two testers, and one tuner, and a raw materials inventory of 9600 kits. This left the factory with zero cash on hand. Customer demand continues to be random, but the long-run average demand will not change over the product’ 486-day lifetime. At s the end of this lifetime, demand will end abruptly and factory operations will be terminated. At this point, all capacity and remaining inventory will be useless
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* Taking care of people * Giving Back to our communities * Doing the right thing * Excellent Customer Service * Creating Shareholder Value * Building Strong Relationships * Entrepreneurial spirit * Respect of All People HOME DEPOT VALUES MISSION IS IMPROVING HOMES SWOT ANALYSIS Strengths * Improving home quality with reasonable prices * team leadership WEAKNESSES * In 2011, home depot lowered prices to keep it customers. * MSC money reported that in the 1st
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