Case study, Cost Accounting

Ask q6) The Net Sales revenue reported is derived from the sale of products. Each year Findley records from cash sells, sells on account and completed purchase orders. During 2016 and 2017, approximately 12% of the revenue recorded was generated from purchase orders for which customers have not taken possession of the products. However, the products have been segregated from other products in the warehouse and are available for the customers to pick-up. The customers have various reasons for not taking possession of the products: 1) a lack of available space for inventory, 2) current inventory levels are high, but it is anticipated that the inventory will decrease in the coming months, and 3) the production schedule has been delayed, so the customer is not ready for the products, yet. The Controller of Findley has stated that only a small portion of the revenue is derived from customers that have not picked up their products, thus the financial statements accurately reflect Findley’s financial performance.
• Prepare a memo that either supports or refutes the Controller’s position.

Posted Date: 3/25/2018 3:14:30 PM | Location : United States







Related Discussions:- Case study, Assignment Help, Ask Question on Case study, Get Answer, Expert's Help, Case study Discussions

Write discussion on Case study
Your posts are moderated
Related Questions
Farmer Dorr figures that her fixed costs are $2,000, and the relevant portion of her total cost curve is:                                           Thousands of

It may be dispute that  in a  total quality environment, variance analysis  from a standard costing system is redundant.í Talk about the validity of this statement.

Bases of Cost Classification These various bases of cost classification are summarized in the diagram underneath as: Here, we will usually refer to either of these ter

Cost sheet is a declaration of cost for a product for given period of time.

mojor elements of cost sheet

interaction with an expert/cost accountant to know the overhead absorbtion policies and procedure followed


Expenses are usually recorded only while they are paid. The failure to record unpaid expenses in the accounts outcomes in an understatement of which expense and also an understatem

MARGINAL COSTING AND DIFFERENTIAL COSTING 1.     Differential costing can be used both in case of marginal costing and absorption costing. 2.     In case of marginal costing