Case study, Cost Accounting

Assignment Help:
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.


Related Discussions:- Case study

Compute prevention costs-appraisal costs-internal failure , Question: A...

Question: At the beginning of the year, Asquith Company Ltd initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help asse

Analyzing direct material costs, You are reviewing a cost proposal, which i...

You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the proposal, you note that there are 500 material items, but y

Management accounting, Management Accounting It is the part of account...

Management Accounting It is the part of accounting such provides special-reason statements and reports to other persons and management inside the organization.  The informatio

Calculate the cash flow - capital cost, A company is evaluating the followi...

A company is evaluating the following lease or buy option.  A four year lease with annual payments of $25,000 payable at the beginning of the year. The tax shield is available a

Balance sheet and income statement, First of all, look at the balance sheet...

First of all, look at the balance sheet and income statement as a whole and spot the problem with it. Answer all questions given in the question + dig into each element of the bala

Estimate the required rate of return, a)     Company X is expected to maint...

a)     Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If the company has a dividend yield of 4%, what is the required return on their

Which of the floowing is not capital budgeting decision, 1. when using the ...

1. when using the internal rate of return method to evaluate capital spending on a new project, the project will be accepted if the internal rate of return is equal to or greater t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd