Inventories Goods Purchased For Resale And Consumable Stores Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1527 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? In this assignment let us more understanding the topic of accounting for inventories .We know got two of inventory valuation methods and two of inventory system .We also know the meaning of cost and lower of cost or market (LCM) and Net realizable value (NRV).Then ,we know real business how to use this all method in business . II Definition of Inventories Inventories are assets of : To held for sale in not unusual course of the business ,also called in finished goods . In work that have not been completed but incurred in capital investment in company ,also called in work in progress. And a material or substance that purchase required to use in production of goods or service for the sale ,also called in raw material . Goods that purchases for resale and consumable stores . Don’t waste time! Our writers will create an original "Inventories Goods Purchased For Resale And Consumable Stores Finance Essay" essay for you Create order Two of inventory valuation methods First in first out (FIFO) method is meaning the first goods or first assets that received or produced are the first goods to issued .During economic inflation ,the closing inventory and profit is higher and cost of goods sold is lower. Because older inventory from the earlier lower price purchases will be issue out for sales first in lower cost of goods sold out . FIFO may be used by aÂÂ  individualÂÂ  or a corporation. Weight Average Cost (WAC) method is meaning use the cost of goods available for Sale then divided it by use the sum amount of goods from the purchases and beginning inventory. Then this will give us Weighted Average Cost per unit. The physical count is to performed in the ending inventory to decide the amount of goods left in company. Lastly , the amount are multiply of the Weighted Average Cost per Unit after that to get the estimate the ending inventory cost. Two of Inventory System The Perpetual inventory system is can also call continuous system .Its system means of inventory on hand can determined at any time so that the profit can calculated as frequently as management requires in monthly or any time. The Periodic inventory system is usually only count all inventory items on business at the end of the accounting period .It process of count inventory causes disruption to the normal routine of business. Cost and lower of cost or market (LCM) and Net realizable value (NRV) Cost is the value of money of the product, items, services and also other items that buy for using of business. Cost also can given up to make decision of decide the price of the product. Product will depend on cost to decide whether the price should high or low. Lower of Cost or Market (LCM) is a way to report inventory. When the lower of cost or market is applied to inventory, the accountant will list the item at the lower of the cost. If the inventory has decreased below historical cost then the value will reduced and also report on balance sheet Net realizable value (NRV) is value of an asset that can be realized by a company, less a reasonable prediction of the costs associated. Net realisable value is generate equal to selling price of the inventory goods less than selling costs. Then to get the net realizable value is use the estimated selling price or current market price minus all the expenditure to incurred and before complete the sales that call selling cost. In pr udence concept ,cost more than NRV ,the company required use NRV to value its inventory. Cost less than NRV ,the company required use cost to value its inventory III Illustrations In illustrations we were give five example of real business .We will explain each real business use which inventories method, inventory system and choose lower of cost or market (LCM) or Net realizable value (NRV). First ,Macdonald company is an international company that provides people a source of fast food in now a busy world. Macdonalds practiced FIFO method in their stocks because they are in food industry and the freshness of their serving is important, therefore Macdonald will clear out their earlier stock faster to prevent the loss in their freshness of food. This means the raw materials are used in order they are receive. So that, stock in Macdonald is always good quality to sold to customers because their products are sold in the order they are made. When they use First In, Last Out (FILO)method , then their finished product (food) will be smelly not good and not fresh or mildew because the first product that prepared is most last to sold out to customers. Macdon alds is use the amount that lowers of cost or market as of the balance sheet date of inventories minus all valuation and other allowances. It did not include the non-current inventory in their balance sheet. The company uses the lower of cost or market to ensure that their company valuation is fair. Macdonald uses the perpetual inventory system, this is because they business operate in large number of stock in stock out, therefore they have to have instance visual on their preparation of raw material, enough supply of foods, drinks and else. Second,TOMEI company sell luxury goods, they have various type of accessory in gold, silver. TOMEI handle their raw material inventory by using WAC method. There is because the raw material such as gold and silver conservation period is long. They handle their raw material using WAC because when TOMEI process the raw material, what they needed is not only simple gold as an accessory, it might add with silver or else. Therefore the use o f WAC is reasonable from TOMEI to manage their inventory. TOMEI value their inventory using NRV, as we know that the inventory of TOMEI is raw material in gold or silver, as this will be material in their reporting of their financial position. TOMEIs valued the inventory by NRV or selling price, to ensure that the shareholders benefit and to build a good position to the public acknowledgement. The refreshment of their inventory will be in periodic system. The raw material of the luxury goods will take time for the miner to mine. Therefore TOMEI buy in large quantity if they needed or they will have to mine themselves for raw gold and silver. Third ,The Coffee Bean and Tea Leaf or more well known as coffee bean, besides franchising their business, they are actually in food industry that provides high quality of coffee, serving of delights. Coffee Bean they have their own stock kept. In terms of valuating their stock they practice FIFO methods. Where this method is recogni ze by IFRS, and also practice parallel with their business activities. FIFO methods is main used to clear off the stock which came in first where most company will use to ensure that there is no loss of inventory due to expiry. Coffee Bean uses NRV method to value their stock kept. They have many branch to take care as the branch have different management system, therefore they try to make it equal and same for all. As Coffee Bean mostly will be in franchised, their stock will be in perpetual system, they will always keep all their records, books. To guarantee there what menu stated will be provided. Third , Dell have been operating for more than 26 years, Dell has branches over the world, communities, customers to use technology to realize their dreams. Dell product is more towards technology and software. Dell manage their hardware inventory by WAC method, as we know that dell is producing a complete set of technology product, for example a desktop, it is not important where the hardware use is first in or last in. The finished goods will be run on a test, the parts that malfunctions will be replaced. Dell is an international company that operates to handle thousand of customer a day. Their value of stock will be valued according to NRV, the NRV will directly influence the securities of Dell, it is due to the inventory will be a major asset of them. Dell companies practice perpetual system for their inventory maintenance, with the system Dell companies will have their real time records on their inventory. It will help them to secure for the production and also to keep up with the order from their customer. Finally, Intel is a global brand with offices in more than 25 countries, major of production of Intel will be chipset and computers processor. As Intel is a huge company that has strict inventory management, FIFO method is used to monitor the activities of the inventory. The main reason for this method is used is because it can help to clear out the stock that eventually coming in for quiet a moment. For most of the international company, NRV will be use to value their stock inventory as this will affect in the balance sheet and also will have an effect on the security of the company. Intel practices a periodic system on their inventory checking. In order to keep up to the speed of the production Intel have to purchase raw material frequently, therefore a periodic supply of the material in an important fact to Intel.

Mini Business Plan Essay - 1284 Words

The purpose of this paper is to summarize a service that will create opportunities to enhance patient care. This will be accomplished by identifying a justifying the need and rationale for its service, its potential effect on patient care, and the way it will positively impact revenue. Next I will identify strengths, weaknesses, opportunities, and threats when implementing this mini project plan; an â€Å"environmental scan† or SWOT analysis. Finally I will provide a mission statement for the new service and describe how this service aligns with the organization’s mission statement and strategic plan. Summary of the service The establishment of a free standing ambulatory surgery center dedicated to upper extremity surgery will provide†¦show more content†¦As entitlement programs are on the edge of major reform and as the surgeons face the loss of purchasing power, cost-effective participation in an ASC becomes an attractive option. 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The sp ecific reimbursement as identified by the CMS guidelines would be as follows: excision of ganglion cyst x two with a HCPCS code # 25111 would be $890.10 each ($1780.20 for two cases), dequervains x one with a HCPCS code # 25000 would be $890.10, open reduction internal fixation of wrist x one with a HCPCS code # 25607 would be $2592.14, and open reduction internal fixation hand x two with a HCPCS code # 26615 would be $1864.78 ($3727.56 for two cases); providing gross revenue of $7127.22 for the surgical day. 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“The structure of business management and organization” Free Essays

string(53) " respected as an individual person or to the worker\." Modern business requires modern management and this means well trained managers. Even today, most people undertake their first management position with little or no formal training.   As a result, they adopt the styles by themselves were managed. We will write a custom essay sample on â€Å"The structure of business management and organization† or any similar topic only for you Order Now    Too often this perpetuates poor or discredited management techniques which have no place in today’s world. With few exceptions, the majority of managers find the most difficult aspect of their job is the management of people, who after all the most important resource of any organization. A form of management began when man first employed others to work for him.   In those early days, the relationship between employer and employee was   master and servant or landlord and serf.   Workers were treated as chattels and motivation was based on the simple principle â€Å" if you don’t work, you don’t eat†.   Some people seem to believe that things have changed little change. Managing modern organization, it requires a completely different set of skills, one of the common myths is that the manager, should be the best exponent of the craft skills with in the organization.   In theory, a good manager should be able to manage any department with in an organization with the minimum of adaptation.   What makes a good manager?   A good manager is one whose staff works with him rather than for him. Can anyone become a manager?   In theory, yes in practice no.   many people are unable or unwilling to adopt to the need of management.   People are usually promoted because they are good at their present job, they have been with the company for a long time, their age gives them seniority, they know the right people, and they happen to be in the right place at the right time. Rarely they are promoted because they will make good managers. As with most activities in life, you won’t know how good you are until you really try it.     Management is no different so you should learn how to do it before taking such a major career step.   Every manager has responsibilities towards him or herself, their team, the individual within the team, the company and task in hand.   This includes motivating staff to perform to the best of their abilities and to prevent demotivation, delegating task, to plan and to control the activities within their domain to ensure that objectives are meet. To take decisions and of course managing problems, not to solve them all, but to help the team reach acceptable solutions.   Effective manager, initiate and encourage ideas from the subordinates and developed the team.   Considering the resources in management group,   Ã‚  the people, acknowledging their different needs, attitudes, abilities and personalities.   These are not constant and can change from day to day, but a good and a modern   manager in a modern organization can maximize the strengths and minimize the weaknesses. Time – the most democratic of the resources.   Every one has 60 seconds in a minute, 60 minutes in an hour, etc.   It is how this time is used that determines managerial effectiveness. Space- this is expensive and many work places suffer from alack of it.   However, much can be made of the space available to improve the working condition /environment   and peoples behavior. Finance- all managers involved with budgets and expenditure to some degree.   Trainings specifically designed to deal with finance for non-financial managers are available. Equipment – including desk, telephones, photocopiers and personal computers.   You should ensure that your team have sufficient for their needs, while bearing in mind that idle equipment is a non-productive cost. Information- ensure that all information received is given the right priority and used as appropriate to help the team. Their utilization will affect the team and the individuals within the team, so managing these resources effectively is vital. After understanding manager’s role and of course before trying to manage other, it is vital to know how to manage yourself.   I f you are seen to be disorganized, easily pressured, blinkered in your views, unmotivated, and subject to swift changes of mood, you will not win the respect and credibility of your staff. â€Å"Healthy self-criticism and an abiding willingness to learn seem to me to be the most important requirements of any manager† HRH Prince Philip. Self management is not about the amount of time you spend in an activity, but about what you do during that time.   His quality that counts, not quantity.   Time is very easily wasted but impossible to regain.   Time spent on non-management activity is not necessarily unproductive time.   But could the time have been between use elsewhere?   It is very important also to learn and control emotions at work   Highly emotional people are often labeled as unstable, untrust worthy and weak.   None of these are traits associated with good management. Communicating people in modern organization is very important Good verbal communicating is a two-way process, the speaker gives the listeners the opportunity to ask questions and make comments about what has been said in order to clarify and query the statement. The objectives is to transmit a message so that it is understood by the listeners.   The art of effective listening is essential to clear communication and clear communication is necessary to management success. Understanding how people are motivated an organization is a task and action that require into a staff to undertake.   In order to be able to motivate them to do so, you must know and understand the needs of each member of the team.   Because of the parameters in which you operate, you may be unable to satisfy the surface needs as money or promotion. Therefore, you have to look for the subconscious needs that these represent and try to satisfy the person concerned by other means such as the need of recognition, we all need to be recognized by others for what we are.   Second, the need for respect, it is our bright right to be accepted and respected as an individual person or to the worker. You read "â€Å"The structure of business management and organization†" in category "Essay examples"   Third, the need for responsibility, by having a task, however small, for which they are totally responsible and accountable, this is best achieved by delegation.   Fourth, the need for reward, not necessarily in the form of money, prizes or time off.   So often, this can be satisfied by a simple but genuine word of praise. Learning to delegate is another task inside the management.   Good delegation will give many benefits to the subordinates, a valuable development, motivation, a sense of responsibility for the staff, involvement and of course improve teamwork.   This will take some of your management time to set up but once operating it, is simple to update and will provide with a very useful management tool. Most people work in modern organization, groups, whether it be an office, a laboratory, a hospital, the factory floor or a theatre, in order that they can achieve their respective objectives, therefore, they must work as a team to build and lead.   It is equally important that all work groups operate or not a group becomes a team depends on how they are lead.   Considering this, analyzing a successful team, identifying team roles, understanding leadership qualities and styles, and managing â€Å"difficult† people is part of building an effective team. Building a successful team can be a slow process and requires patience and perseverance on our part.   If things do not work the first time, don’t blame the team, try again- you will get it together eventually. â€Å" ALL FOR ONE AND ONE FOR ALL†. The most important, and be reminded that our life is full of decisions making, every day we make decisions, these decisions affect only ourselves or our families and many of them are made on experience.   All decisions contain a degree of uncertainty, otherwise there would be no decisions make.   To help overcome these uncertainties, we can apply the following steps: a.)Define the aim- clarify the reasons and objectives. b.)Collect the facts- obtain as much information as possible, relevant to the decision. c.)Examine the options- study a number of possible options, don’t rely sole on past experience. d.)Consider the outcome- look at the risk factor of each option and the consequences of a wrong decisions. e.)Select the best option- decide upon the option with the lowest risk factor which will still meet the aim. f.)Do it- once a decision has been reached, put it into action, don’t procrastinate. g.)Evaluate the decision- to proved to be right or wrong. Managers continually face assessing management problems in two distinctive categories; those related to work itself and those related to people.   Whilst the objective in both cases is to solve the problem, they are tackled in quite different ways.   When confronted with a problem, the first question to ask yourself is â€Å"Is this my problem? If not, then should you really be trying to solve it?   However, should the problem be yours and you are the best person to find a solution, make sure that you understand exactly what the problem is.   Much time and effort is spent in business trying to solve the wrong problem. Addressing work problems is also important, these can be short, medium or long term.   Some are simple, others more complex.   Many work-related problems can be solved by you alone, while others are better served by involving different people.   Whatever the problem, it is good practice to have a clearly defined method of handling it.   Taking a systematic approach, a series of steps that need to be taken and questions that require answers before attempting to find a solution.   This will be follow; analyze, plan, execute and   evaluate.   Time is democratic, we all have the same amount.   It is what we do with it that really counts. Time ticks by relentlessly.   It is very easy to waste but impossible to regain.   The only way in which we can save time by doing something more quickly or by not doing it at all.   There is ‘working’   time and ‘social’ time.   If we add to one we automatically take from the other.   The art is to maintain a sound balance between the two.   As a manager, you need to manage your time carefully, so that we can maximize its use and do not encroach upon your ‘social’ time. Before trying to manage your time effectively, we need to analyze how you spend it at present. So, time organizing to be applied.   List those activities that you do during the course of a normal week.   For example, paperwork, telephoning, attending meetings, dealing with people, traveling and so on.   Estimate the number of hours you spend on each activity.   Time allocation, to ensure that you deal with all of your tasks on time, it is essential to plan how you will use your time effectively. Your last job each day should be to list everything that you have to do the next day.   To innovate is to â€Å" make changes†, to introduce ‘new things’.   However, many people find it very hard to come up with new ideas, particularly to order, this is managing innovation.   Generating new ideas often occur when we are doing something quite unconnected with the problem, such as driving the car, walking the dog or watching television. However, part of the management time should be devoted to innovation, to help generating new ideas, explore all approaches without evaluation, switch from problem to problem, allowing mind to wander over alternative and apparently irrelevant ways of looking at the situation and write down ideas and thoughts.   Managing different types of interviews, an interview is a meeting of people, tow or more, face to face, to accomplish a certain known purpose’.   In reality, an interview should be confined to two persons. Good interviewing prepare by obtaining as much information as possible before the interview, ensure privacy, emphasize confidentiality, ask appropriate questions, listen carefully, observe the interviewee’s body language, use counseling techniques to discover the core problem and encourage the interviewees to reach their own solution. People have first to decide that they want to change, then they must be encouraged not to be afraid of change and finally they must be able to see where change is leading them.   Understanding and managing change, changes to an organization are caused by both internal and external factors.   Many of these changes are unpredictable and, whatever, the causes or circumstances, invariably involve people. The way in which people react to change will depend on how the change is presented to them and how they perceive it will affect them.   The causes of change can be divided into two types, those over which as a manager have no influence and those over which you do.   In the first group are changes which will affect the whole company, such as relocation or a change in company policy.   These are often due to external factors such as the economy, environment or the law.   Changes which you can influence are normally those which will mainly affect only your and your staff. Managing stress at work, one of the main reasons why people are stressed at work is their boss and the way they are managed.   There is one way for an executive to manage stress.   He must stop taking for granted success at home, and begin giving as much priority in terms of time and energy to achieving success there as he does to his job.   Understanding the causes of stress, the most common causes of stress have their origins outside the workplace. A few years ago a list of activities which can cause stress was complied by psychologists.   It is based on a scale of 0-100.   The higher the value, the greater the stress.   Both positive and negative events can cause stress.   It is interesting to note that of 34 activities listed over, only seven are directly work related and the highest two of those will have a direct effect on your domestic life.   Although management as a profession only has a stress rating of 5.8, some managers seem to spend their time trying to push it as far up the scale as possible. People who experience domestic pressures often immerse themselves in their work in an attempt to forget these problems.   However, the problems are still there when they return home, so they will work longer hours in order to delay having to go home.   These increased absences result in still more stress on the domestic front.   It is a vicious circle.   Other stressful factors are; too much work, giving few opportunities to plan or priorities.   To mo little work, boredom and a sense of being under-valued and ignored. Isolation, most people need human contact and those who work alone can be stressed by a lack of communication.   Routine work, not being stretched or challenged.   Poor supervision, unable to become involved or use creative abilities.   No clear promotional structure, frustration.   Environment,   working in cramped conditions, seating arrangements, open plan office, too much noise.   Managing in a changing work place is also included in managing the modern organization. With this, abilities and skills of being a manager, managing in a modern organization, it has become fashionable for companies to adopt a flatter organizational structure.   This is achieved by ripping out the middle management stratum and replacing it with working manager’s at supervisory level.   These people are expected to continue with their specialist role, be it operating a lathe, selling products or repairing computers, and at the same time manage a team.   Although this means that people are promoted who may not have expected to be, it also result in a wider gap between the workforce and senior management. Whilst it is acknowledged that a proportion of those managers who have lost their jobs may have been poor managers, did they receive adequate, or indeed any, management training?   It is to be hoped that senior executives will quickly realize the benefits to their companies of having good, well qualified managers and reverse this trend before causing further damage to the morale of the employees. References : Managing Trough People, by John Humphries, Published by Grolier Business Library International, Inc. printed in 2003. Business Organization and Management edited by H. Guitierrez, Jose M. Pura Jr., Rolando M. Garcia sixth edition, R.M Garcia Publishing House, Quezon City Philippines. How to cite â€Å"The structure of business management and organization†, Essay examples