Revenue recognition is covered under ASPE – section 3400 (Revenue): Private entities opting to use the ASPE for revenue recognition should use the ASPE guidance. The standard covers the sale of goods and the rendering of services by an entity in the ordinary course of business. Definition: * Revenue is the cash, receivables and other consideration coming into the business from its ordinary business activity. * The completed contract method recognizes revenue when the good or service has
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being used and there are long setup times, no preventive maintenance, and poor quality?) If Pull type Kanban is used & the mentioned issues in the question above are faced, below will result. Longer setup times will lead to increase in inventory levels as the raw material can’t be processed till setup is complete. This can lead to deterioration of quality of products, poor utilization of equipments, idle workers & so on. No preventeive maintenance will lead to frequent breakdowns of
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CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 The budgeting cycle includes the following elements: a. Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is expected. b. Providing a frame of reference, a set of specific expectations against which actual results can be compared. c. Investigating variations from plans. If necessary, corrective action follows investigation. d. Planning again, in light of
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ratio = (Current Assets – Inventory)/Current Liabilities = (921 – 491)/457 = 0.94 1.6 Receivable turnover = Sales/Accounts receivable = 2,035/413 = 4.93 7.7 Average collection period = 365/ Receivable turnover = 365/4.93 = 74.08 47.4 Efficiency Ratios The efficiency ratios are the ratios that are used to measure the efficiency of the company to manage its assets, inventory, and payment. The high total asset turnover and inventory turnover will indicate
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acquisition date, all the identifiable assets and liabilities of Napoli Ltd were recorded at amounts equal to fair value except for: CarryingFair AmountValue Land$50 000$75 000 Buildings (cost $75 000)55 00057 000 Inventory45 00060 000 Plant (cost $260 000)182 000190 000 Delivery Truck (cost $90 000)36 00038 000 Any adjustments for differences between carrying amounts at acquisition date and fair values are made on consolidation. Any valuation reserves created are transferred
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rest of world). The sourcing strategy with external suppliers is based on expertise, relative cost, transportation cost and most importantly time sensitivity. At the beginning of each season Zara commits 50-60 % of its inventory, while quarter of the season collection is made available at start of season. Competitive advantage for Zara by using the sourcing strategy: 1. Being able to produce at lower costs 2. Flexibility to use in-house production following fashion trends 3. Better meet
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trying to figure out what the hell the professors are talking about when they go into managing and valuing inventories for companies. This one area of accounting is one of the most important parts to understand, because of the vast amounts of money companies have raped up in inventories. So sit back and get ready to be bored because we are entering the world of accounting. Inventories are asset items held for sale in the ordinary course of business or good that will be used or consumed in
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the refrigerator aisle. Since seafood is a perishable good, we have to consider the natural time constraints, the “cold chain” of the frozen products and the time needed for the different processing. The different transportations and inventories’ times, in the two scenarios, had been evaluating from an analysis of the best practices related to the ichthyic and fishing
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CASE: Barilla SpA (A) I.Overview of the Case Barilla SpA (Barilla) is a renounced Italian manufacturer that sells several brands of pasta to retailers mainly through third-party distributors. The company was founded in 1875 by Pietro Barilla in Parma, Italy, on Via Vittorio Emanuele. The company passed through the hands of generations from Pietro to his son Ricardo, then to his sons, Pietro and Gianni. The sons “drove the Barillas deeply into debt”; in 1971 the company was sold to a U.S
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Assignment 1: You Are an Entrepreneur! ENTERPRENEUR Introduction My family and I own a small family owned community business called Snacks, Snacks, and More Snacks! We provide freshly prepared mini sandwiches, mini quiche and an assortment of baked goods. Snacks are replenished throughout the day to ensure food is fresh and hot, based upon the customer’s availability. We strive for perfection and are committed to provide a clean and safe work environment for the employees. We pride ourselves
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