sale are called inventory, or more specifically, merchandise inventory. Inventory is a current asset that will be sold to yield a profit--and the adage "buy low, sell high" is a succinct way to state a merchandiser's profit strategy. In addition to introducing a new asset, we also introduces a new cost category, and a new name for the revenue account. The cost is called Cost of Merchandise Sold (also called Cost of Goods Sold by some companies), and represents the cost of the inventory that was sold
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Inventory Management Professor Operations Management BUS430 February 26th, 2015 Managing inventories is integral to a company’s success. Having too much inventory can cost the company a lot of money and having too little can be costly by losing out on customers. It is a juggle for managers to find the right balance in accurately managing inventory. Not only do they have to make sure that they can meet the demand of the customer but they also have to cost effective. Two companies that manage
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labor hours, what is the company’s predetermined overhead rate? 2. Sunstead Company uses a job-order costing system and applies manufacturing overhead to Work in Process inventory using a predetermined overhead rate. The company had no beginning or ending inventories in the current month. During the month, the company’s transactions included the following: |Manufacturing overhead cost incurred |$1,000,000 | |Manufacturing overhead
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specifies the tasks that constitute a job for an individual or a group. There are five components of job design, namely: • Job specialization-it suggested division of labor which can be done in several ways such as development of dexterity and faster learning by the employee because of repetition, less loss of time because employees would not be changing jobs or tools and development of specialized tools and the reduction of investment because employee has only a few tools needed for a particular task
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businesses to maintain a competitive advantage. This paper is going to analyze supply chain management a retail perspective to new learning perspectives of modern businesses. Issues For many years supply chain managers had difficulty determining the optimal amount for their inventory levels (Chin et al, 2012). For example, in Wal-Mart the company has to determine how much inventory to include in stores in comparison to a just in time approach. Research has indicated that improper supply chain management
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Financial statements identify for us a multitude of figures, for example, gross profit, net current assets etc. However, these figures do not mean very much unless we can compare them to something else. There are several ratios help analysts interpret financial statements by focusing on specific relationships, such as profitability ratio, liquidity ratio, efficiency ratio, ratio and market value ratios etc (Alexander & Britton, 2004). Profitability Ratios 1. Net Profit = (Net Profit / Sales)
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Total assets turnover: 1.5 Day’s sales outstanding: 36.5 days Gross profit margin on sales: (Sales-Cost of goods sold)/Sales = 25% Inventory turnover ratio: 5.0 Balance Sheet for Hoffmeister Industries Cash $27,000.00 Accounts Payable $90,000.00 Account Receivable $45,000.00 Long-term Debt $60000.00 Inventories $67,500.00 Common Stock $52,500.00 Fixed Assets $169500.00 Retained Earnings $97,500.00 Total
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Total assets turnover: 1.5 Day’s sales outstanding: 36.5 days Gross profit margin on sales: (Sales-Cost of goods sold)/Sales = 25% Inventory turnover ratio: 5.0 Balance Sheet for Hoffmeister Industries Cash $27,000.00 Accounts Payable $90,000.00 Account Receivable $45,000.00 Long-term Debt $60000.00 Inventories $67,500.00 Common Stock $52,500.00 Fixed Assets $169500.00 Retained Earnings $97,500.00 Total
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New Employee Orientation “The new employee orientation process begins before the employee comes to work. Planning ahead for your new employee’s arrival will allow you to spend productive time on that first day (University of California, Berkeley, a). According to Berkeley, the following items are of importance: “make a copy of the job description and your department’s organization chart, make sure the employee’s work location is available, clean, and organized; make sure a copy of the
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which may become a dead stock in future. 67% of the maintenance stores of NACA which have a total of 2012 types of items had not been used in the last 40 months. The total non- moving inventory of both amounts to Rs 1679 crores, which has been blocked because of their non-usage. The problem here is that the inventory needs to be maintained: 1) Because of its uncertain demand; 2) As these items are procured from foreign manufacturers, their lead time is high. 3)
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