Achieving the proper balance of inventory can be quite difficult because of the trade-offs between inventory carrying cost and stockout cost. More specifically, holding high levels of inventory (overstock) result in higher inventory carrying costs and low (or no) stockout costs.
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Feb 18, 2019 · 2) What makes it difficult for managers to achieve the proper balance of inventory? The trade-offs between inventory carrying cost and stockout cost. Pg 130 3) Distinguish among cycle, safety, pipeline, and speculative stock. Cycle refers to inventory that is needed to satisfy normal demand during the course of an order cycle.
Achieving the proper balance of inventory can be quite difficult because of the trade-offs between inventory carrying cost and stockout cost. More specifically, holding high levels of inventory (overstock) result in higher inventory carrying costs and low (or no) stockout costs.
Sep 01, 2018 · 8-2. What makes is difficult for managers to achieve the proper balance of inventory? Achieving the proper balance of inventory can be quite difficult because of the trade-offs between inventory carrying cost and stockout cost. More specifically, holding high levels of inventory (overstock) result in higher inventory carrying costs and low (or no) stockout costs.
2. What makes it difficult for managers to achieve the proper balance of inventory?-Achieving the proper balance of inventory can be quite difficult because of the trade-offs between inventory carrying cost and stockout cost.More specifically, holding high levels of inventory (overstock) result in higher inventory carrying costs and low (or no) stockout costs.
It can represent a large balance of assets or capital. Auditing inventory must verify not only the amount of inventory but also its quality and condition to see whether the value of the inventory is fairly represented in financial records and statements.
Auditing inventory is the process of cross-checking financial records with physical inventory and records. It can be completed by auditors. Auditor An auditor is a person or a firm assigned to perform an audit on an organization. An audit is a structured, methodical process that includes an examination. and other parties.
An audit is a structured, methodical process that includes an examination. and other parties. An inventory audit can be as simple as just taking a physical count of stock and inventory to verify a match to the accounting records.
Evidence in Auditing. Evidence is needed to determine whether financial statements or records have been prepared in accordance with standards and free from material error. It is also required to promote the accuracy, transparency, and independence of audit reports. Evidence is required by auditors to verify the validity of financial records.
Evidence is needed to determine whether financial statements or records have been prepared in accordance with standards and free from material error. It is also required to promote the accuracy, transparency, and independence of audit reports.
Generally, freight costs are included in the value of inventory, so it is important to track the freight costs as well. 6. Matching. Matching involves matching the number of items and the cost of inventory shipped with financial records.
Overhead analysis includes analyzing the indirect costs of the business and overhead costs that may be included in the costs of inventory. Rent, utilities, and other costs can be recorded as part of inventory costs in some cases.