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3 years ago

Each SBU pursues its own distinct mission and often develops its own plans indepenently

Business

1 answer:

tester [92]3 years ago

4 0

Answer:

True, each SBU pursues it's own distinct mission and often develops it's own plans independently

Explanation:

A Strategic Business Unit refers to a fully functional unit of a business which operates independently and like a fully functional business has it's own departments which act independently from the business to which an SBU reports.

Often, companies which produce multiple different products gradually set up an SBU for those products which have successfully created a distinct identity, separate from the main company.

The purpose of setting up an SBU is for better tracking of revenues and costs associated with the SBU.

So each SBU has it's own distinct mission i.e it's objectives and how(ways by which) it shall achieve those objectives. The plans for achievement of such objectives are devised accordingly.

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Perpetual Inventory Using FIFO

maks197457 [2]

The cost of goods sold on October 24 is $4830

The perpetual inventory as on October 31 is 70 units of value as $2310

Explanation:

The order of events in the given scenario,

Oct. 1 - Inventory 200 units at $30
Oct. 7 - Sold 160 units
Oct. 7 - Remaining Inventory 40 units at $30
Oct. 15 - Purchase 180 units at $33
Oct. 15 - Total Inventory 40 units at $30 + 180 units at $33
Oct. 15 - Total Inventory 220 units and value is $7140 ($30 * 40 + $33 * 180)
Oct. 24 - Sold 150 units
Oct. 24 - Taken 40 units from the purchase of $30 and 110 units from the purchase of $33 by using FIFO logic
Oct. 24 - Total cost of goods sold is $4830

So, cost of goods sold on October 24 is $4830

Oct. 24 - Total Inventory 70 units and value is ($7140 - $4830) = $2310

The perpetual inventory value as on October 31 is $2310

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Answer:

See explanation

Explanation:

Instructions:

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