What is the electronic product code (EPC)?
> If inventory is being valued at cost and the price level is steadily rising, which of the three methods of costing—FIFO, LIFO, or weighted average cost—will yield the lowest annual income tax expense? Explain.
> Which of the three methods of inventory costing—FIFO, LIFO, or weighted average cost—will in general yield an inventory cost most nearly approximating current replacement cost?
> If merchandise inventory is being valued at cost and the price level is decreasing, which of the three methods of costing—FIFO, LIFO, or weighted average cost—will yield (a) The highest inventory cost, (b) The lowest inventory cost, (c) The highest gross
> Do the terms FIFO, LIFO, and weighted average refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain.
> Why is it important to take a physical inventory periodically when using a perpetual inventory system?
> For (a) through (d), identify the items designated by X and Y. a. Purchases – (X + Y) = Net purchases. b. Net purchases + X = Cost of merchandise purchased. c. Merchandise inventory (beginning) + Cost of merchandise purchased = X. d. Merchandise availabl
> Complete the following table by indicating for (a) through (g) whether the proper answer is debit or credit: Normal Account Increase Decrease Balance Purchases debit (a) (b) Purchases Discounts credit (c) credit Purchases Returns and Allowances (d)
> From the following list, identify the accounts that should be closed to Tim Button, Capital at the end of the fiscal year under a perpetual inventory system: (a) Accounts Receivable, (b) Cost of Merchandise Sold, (c) Customer Refunds Payable, (d) Estimat
> What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Customer Refunds Payable, (c) Delivery Expense, (d) Estimated Returns Inventory, (e) Merchandise Inventory, (f) Sales, (g) Sales Tax Payable.
> A sale of merchandise on account for $36,000 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount recorded as sales? (c) What is the amount debited to Accounts Receiva
> Equipment acquired at the beginning of the year at a cost of $340,000 has an estimated residual value of $45,000 and an estimated useful life of 10 years. Determine (a) The depreciable cost, (b) The straight-line rate, and (c) The annual straight-line de
> Merchandise is sold on account to a customer for $56,500, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $2,100. Determine the following: (a) Amount of the sale, (b) Amount debited to Accounts Receivable, and (c) Amount received wit
> The Wheatland Company purchased merchandise on account from a supplier for $30,000, terms 1/10, n/30. The Wheatland Company returned $8,000 of the merchandise and received full credit. a. What is the amount of cash required for the payment within the dis
> For a recent year, Best Buy reported sales of $40,339 million. Its gross profit was $9,047 million. What was the amount of Best Buy’s cost of merchandise sold?
> How are sales to customers using MasterCard and VISA recorded?
> The credit period during which the buyer of merchandise is allowed to pay usually begins with what date?
> What distinguishes a merchandising business from a service business?
> Assume that Audio Outfitter Inc. in Discussion Question 9 experienced an abnormal inventory shrinkage of $98,600. Audio Outfitter Inc. has decided to record the abnormal inventory shrinkage so that it would be disclosed separately on the income statement
> Audio Outfitter Inc., which uses a perpetual inventory system, experienced a normal inventory shrinkage of $13,675. What accounts would be debited and credited to record the adjustment for the inventory shrinkage at the end of the accounting period?
> Name four accounts that would normally appear in the chart of accounts of a merchandising business but would not appear in the chart of accounts of a service business.
> Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?
> Identify each of the following as relating to (a) The control environment, (b) Control procedures, or (c) Information and communication: 1. Organizational structure 2. Report of company’s conformity with environmental laws and regulations 3. Proofs and s
> Name some users of accounting information.
> The daily demand of a product is very stable at 250 units per day. However, the order lead time varies and can be specified by a normal distribution with a mean lead time of 12 days and standard deviation of 3 days. What is the safety stock and reorder p
> Lindner Congress Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 15 units and a standard deviation of 4 units per day. The order lead time for this calculat
> Paris Store stocks a part that has a normal distribution demand pattern during the order lead time period. Its average demand during the order lead time is 650 units and the standard deviation of demand during the order lead time is 60 units. What is the
> Frankfurt Electronics produces a component internally using the state of the art technology. The operations manager wants to determine the optimal lot size to ensure that the total annual inventory cost is minimized. The daily production rate for the com
> Using the Steamy Speedboats problem above, assume that the holding rate has dropped from 32 percent to 15 percent. What are the (a) optimal order quantity, (b) annual purchase cost, (c) annual holding cost, (d) annual order cost, and (e) total annual inv
> Use the Steamy Speedboats problem above and assume that the order cost has dropped from $300 to $50. What is the optimal order quantity, annual purchase cost, annual holding cost, annual order cost and total annual inventory cost?
> Steamy Speedboats has an annual demand of 1,500 speedboats. Its supplier offers quantity discounts to promote larger order quantities. The cost to place an order is $300, and the holding rate is 32 percent of the purchase cost. The purchase cost for each
> Icy Snowmobile Inc. has an annual demand of 1,200 snowmobiles. Their purchase cost for each snowmobile is $2,500. It costs about $250 to place an order, and the holding rate is 35 percent of the unit cost. Compute the EOQ, annual holding cost, annual ord
> The monthly demand for a part is 1,500 units. The order cost is $285 per order, the holding cost is $56 per unit per year and the part cost is $850 per unit. The firm operates twelve months per year. Compute the (a) EOQ, (b) annual holding cost, (c) annu
> The annual requirement of a part is 360,000 units. The order cost is $120 per order, the holding rate is 12 percent and the part cost is $2,500 per unit. What are the (a) EOQ, (b) annual holding cost, (c) annual order cost, and (d) annual total inventory
> How does a merchant differ from an industrial buyer?
> Given the following information, compute the economic order quantity, annual holding cost, annual ordering cost, and total annual inventory cost. Annual requirements (R) = 50,000 units Setup cost (S) = $150 per order Holding rate (k) = 15% Unit cost (C)
> Given the following information, what is the annual inventory turnover ratio? Revenue $2,2000,000 Cost of Revenue $1,250,000 Quarter 1 Ending Inventory $85,000 Quarter 2 Ending Inventory $98,000 Quarter 3 Ending Inventory $125,000 Qua
> The revenue for a firm is $2,500,000. Its cost of revenue is $850,000 and its average inventory value for the year is $62,000. What is the inventory turnover?
> Why is inventory management important to SCM?
> What is the order quantity when the annual order or setup cost equals the annual holding cost in the (a) EOQ model, (b) quantity discount model, and (c) EMQ model?
> Use the inventory turnover ratios in Table 7.2 to comment on which firm is the most efficient in deploying its inventory to generate sales.
> Assume that you have used the EOQ model to compute the order quantity for an item, and the answer was twenty units. Unfortunately, the minimum lot size for the item is twenty-four units. Discuss how this is going to impact your annual holding cost, annua
> Discuss whether the EOQ model is still useful if a small error was made while estimating one of the cost parameters used in the EOQ computation.
> How is the EMQ model related to the classic EOQ model?
> How is the quantity discount model related to the EOQ model?
> What are the four foundation elements of supply chain management? Describe some activities within each element.
> What are the two major costs considered in the EOQ model? Why is the total purchase price not a factor affecting the order quantity?
> What are the assumptions of the EOQ model?
> Explain why item-level tagging is more expensive than case-level tagging in RFID.
> Briefly describe how RFID can be used to manage inventory.
> Why is it important to conduct cycle counting?
> Describe inventory turnover and how is it used to manage inventory.
> What is the ABC inventory system, and how is it used to manage inventory?
> Explain why many ERP implementations have failed to yield the expected benefits over the last ten years.
> What are the advantages of an ERP system over the legacy MRP system?
> You are given the following information: Costs Make Option Buy Option Fixed cost $125,000 $5,000 Variable cost $15 $17 a. Find the breakeven quantity and the total cost at the breakeven point. b. If the requirement is
> Why is it important to learn the fundamentals of the traditional MRP system even if it is considered an out-dated, legacy system?
> Why are production planning and capacity planning important to SCM?
> How are the various capacity plans (ERP, RCCP, CRP) related to the material plans (APP, MPS, MRP)?
> What is the difference between an MRP explosion and a DRP implosion?
> What is the difference between scheduled receipts and planned order releases?
> How are manufacturing and purchasing lead times considered in the MPS and the MRP?
> What are the crucial inputs for material requirements planning?
> What is the purpose of low level coding?
> Why is it important to balance production with capacity?
> What is demand forecasting?
> What roles do “collaboration” and “trust” play in the practice of supply chain management?
> What is demand management?
> West Marine identified ten performance improvement steps in their successful implementation of CPFR. Is West Marine’s approach unique or can their experience be duplicated at another company? What are the key challenges that other companies might face in
> What are three measures of forecasting accuracy?
> What are the main components of a time series?
> What are qualitative forecasting techniques? When are these methods more suitable?
> What is a common method for developing second-tier suppliers?
> Why are second- and third-tier suppliers important to the focal firm?
> What is the difference between supplier management and alliance development?
> What is sourcing’s role in value engineering, and what benefits does this give to the firm?
> What advantages do company-designed supplier certification programs have over industry certifications like ISO 9000?
> How could the supply chain members reduce total inventory and back order costs in the future?
> What are the benefits of obtaining ethical and sustainable certifications? Why would a buyer want its suppliers to have these certifications?
> What is supply base rationalization, and what are its advantages and disadvantages?
> Where do ethical and sustainable sourcing policies come from, in an organization?
> Can firms buy functional products in an ethical way? Sustainable way? What about innovative products?
> What are some common practices or activities of ethical sourcing?
> What is ethical sourcing and why do firms do it?
> What is the difference between purchasing and sourcing?
> What are the similarities and differences in capabilities of SRM software offered by i2, Oracle, and SAP?
> Why do organizations have supplier awards program?
> Research ISO’s Web site (http://www.iso.ch) and discuss the growth of ISO 9000 and 14000 certification by regions of the world such as Africa/West Asia, Central and South America, North America, Europe, Far East, and Australia/New Zealand.
> Describe and draw a supply chain for a bicycle repair shop.
> Describe the disadvantages of global sourcing and how it can adversely affect a firm’s competitiveness.
> How can global sourcing enhance a firm’s competitiveness?
> What is a carbon footprint and how can firms reduce theirs?
> It has often been pointed out that 60 percent of strategic alliances fail? What are the reasons for this?
> What are the key factors that contribute to a lasting supplier partnership?
> What does process integration mean and what does this have to do with SCM?
> Why do firms purchase from foreign suppliers? What are the risks involved in global sourcing?
> What are 3PLs and what role do they play in SCM?
> What are micro-purchases? How can they be used to improve public procurement?
> Briefly describe the terms lean and Six Sigma systems.
> What happened to the current inventory levels as we move backward, up the supply chain from retailer to manufacturer? Why?
> Describe the different types of bid bonds.
