All categories

2 years ago

How does inventory differ from other types of purchases and discuss what controls pertain specifically to inventory processes?

1 answer:

4 0

Inventory are the products which are directly involved in the manufacturing of a business. Inventory includes raw materials inventory, work in progress inventory and finished goods inventory.

In a merchandising business, inventory includes all the products available for use. There are inventories in the administrative section of the company also which is known as the supplies Inventory.

Purchases are a nominal account that forms part in the cost of goods sold. Purchases term is used in the manufacturing firm and is the raw materials needed in the production of their product, thus will also form part of the inventory account if there is a left over for it.

Inventory on the other hand can come from the purchases itself in terms of the raw materials.

There are many inventory control such as the following:

Conducting different semi annual inventory count to know the actual number of inventory in hand against the monitoring of the inventory

Maintaining security of the facility of the stockroom storage by having cctv and padlock of the room.

Checking the incoming and outgoing inventory based on the documents given in the store.

Proper segregation of duties must be there, the record keeper should not be the same person as the one holding the inventory.

To know more about inventory here:

brainly.com/question/15118949

#SPJ4

You might be interested in

Which economic system has no formal government

Tanya [424]

Market economic system

7 0

3 years ago

1. Question 1 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent t

Blizzard [7]

Answer:

B. What must be given up to acquire it

Explanation:

The opportunity cost is the cost which is to be sacrificed to gain for some better option

Since in the given case the aunt is thinking to open a hardware store but it will cost her $500,000 for rent and the to purchase the stock

And, also she also have to quit her accountant job for $50,000

So in this option quitting the job is to be considered as an opportunity cost

7 0

3 years ago

In any collaboration, data ownership is typically determined by:(A) The research team with access to the best lawyers.(B) The ty

Tatiana [17]

Answer: (B)

The type and source of funds used to support the project.

Explanation:

In a research collaboration, the type and source of funding used, determines ownership of the data in most cases.

In situations where the research is quite expensive to conduct, researchers tend to enter into agreements with firms or institutions that fund the data in exchange for ownership rights.

7 0

3 years ago

A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.

ioda

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

7 0

3 years ago

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar)

timama [110]

Question

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:

Year cashflow

0 -100

1-10 15

0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project

Answer:

NPV= -$32.58

Explanation:

The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 5%,, Rm-15%, β- 1.30

Ke=5% + 1.30× (15-5)= 18%

The NPV = Present value of cash inflow - initial cost

= A×(1-(1+r)^(-10)/r - initial cost

A- 15, r-18%

NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58

NPV = -$32.58

5 0

3 years ago