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a) Stockpiles refers to the accumulated (or excess level of) supply Ford motor vehicles, i.e. too much production given the level of demand. The purpose is to prevent possible shortages in supplies which could harm profitability and sales (although in Ford's case stockpiling is the result of poor stock control).
b) Poor stock control can mean either under-stocking or excessive stockpiling (or even a stock-out). There are drawbacks to both, as outline below:
Over-stocking
Under-stocking
Reduces Ford's liquidity position
Disgruntled and dissatisfied customers
Likely to hinder working capital since finance is tied up in stockpiles
Customers might switch to rival manufacturers' brands
Higher storage costs, e.g. insurance, maintenance and security
Compensation for failure to meet promised delivery dates
Possibility of some stock being damaged or even becoming obsolete (unlikely for cars, but their value could still depreciate)
Higher unit costs due to idle resources (which cost money but do not generate revenue)
Disadvantages of IFRS 8 Reconciliations may be time consuming. Less comparable with other organisations, as every entity has a different way of running their business.
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I NC O terms You learnt that specifications, delivery period and destination are all dependent factors on a particular project. Let us know about the internati
Suppose that the Fed buys $1 million of bonds from the First National Bank. If the First National Bank and all other banks use the resulting increase in reserves to purchases bonds
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Entity A is significantly smaller than B in terms of revenue and would not impact LOP's revenue to the same extent. However A earns a noticeably better gross profit margin at 26% a
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