Benchmarking involves the identification of the best practices used by world-class competitors. Discuss the following widely recognized best practices: activity-based management and just in time inventory.
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Many companies have come to the conclusion that activities drive costs. To control or lower costs, companies must focus on activities. Activity-based management seeks to manage the value chain in order to create new or refine existing value-added activities. A value chain is the sequence of activities through which an organization provides products and services to its customers. A value-added activity is an activity that customers are willing to pay for. Companies should try to reduce or eliminate non-value-added activities. Just in time inventory seeks to reduce inventory holding costs and other hidden inventory-related costs such as diminished motivation, sloppy work, and increased production time. In a JIT manufacturer, no units are produced until customer orders are received.
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At the beginning of the year, Swift, Inc's Work-in-Process Inventory account had a balance of $124,000
During the year, $250,000 of direct materials were used in production, and $72,000 of direct labor costs were incurred. Manufacturing overhead amounted to $832,000. The cost of goods manufactured was $676,000. What is the balance in the Work-in-Process Inventory account on December 31? A) $1,154,000 B) $1,352,000 C) $676,000 D) $602,000
NGO officials are included as government officials for purposes of the Foreign Corrupt Practices Act
Indicate whether the statement is true or false
If the size of the sample to be used in a particular test of controls has not been determined by utilizing statistical concepts, but the sample has been chosen in accordance with random selection procedures
A. No inferences can be drawn from the sample. B. The auditor has committed a nonsampling error. C. Depending on the size of the sample chosen, the auditor may actually achieve desired precision. D. The auditor will have to evaluate the results by reference to the principles of discovery sampling.
Why would a company pay an executive in options as opposed to salary?
What will be an ideal response?