Answer and Explanation:
The effect of undervaluation of Inventory is shown below:-
Inventory Understated = Inventory counted + Correct value of inventory
= $545,000 - $554,000
= $9,000
Now, the effect of undervaluation of Inventory is
Cost of goods overstated by $9,000
Net income understated by $9,000
Retained earning understated by $9,000
Assets (Current assets - Inventory) understated by $9,000
Answer:
Explanation:
1. True
Separation of record keeping for assets from custody over assets in custody over assets reduces theft and fraud . except in a case of collusion.
Fraud and theft of assets can be easily perpetrated and covered up when an individual combines the role.
2. False
Internal control focuses more on the internal operation of an organization rather than the external. Even though it can still be of impact in checking the excesses of external parties like the government agencies , but that is not its primary objective
3.True
Internal control's main objectives can be best accomplished when there is an operational system with managerial policies that protect waste , fraud and theft , being the major factors targeted to control
4.False
Separating the responsibility for a transaction between two or more individuals or departments is a major way of preventing creation of fictitious invoices and payment as it could have easily be detected if different individuals are involved in approval and payment of invoices.
<u>Collaborative planning, forecasting, and replenishment (CPFR)</u> e-business model is used by Walmart & Pepsi companies through their supply chain management process.
Supply chain management is the practice of integrating supply and demand management across all of the many participants and channels in the supply chain so that they cooperate as effectively and efficiently as possible. Three main advantages of effective supply chain management for a business.
For any firm, supply chain management is essential because doing it properly can have a number of positive effects; on the other hand, doing it poorly can lead to highly costly delays, quality problems, or reputational damage. If vendors or processes are not compliant, inadequate supply chain management may occasionally result in legal problems as well.
To know more about supply chain management
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Answer:
The answer is economies of scale .
Explanation:
Government license, patents and public franchise are all forms of legal barriers that prevents new entrants from copying, imitating or entering the market. However, economies of scales are a economic barrier that arises due to the scale of operations of a firm and is not a legal barrier.
