Solution for Chapter 11

In: Business and Management

Submitted By qianjinyin
Words 19271
Pages 78
Solutions for Chapter 11

Audit of Acquisition and Payment Cycle and Inventory

Review Questions:

11-1. Supply chain management involves the management and control of materials in the logistics process from the acquisition of raw materials to the delivery of finished products to the end user (customer). Supply-chain management involves contracts between buyers and suppliers that specify contract, delivery, and payment terms. In some cases, such as Wal-Mart, suppliers retain title to the goods until they are sold to the buyer’s customers. Wal-Mart’s suppliers have access to Wal-Mart’s inventory records and automatically restock inventory according to that contract. Wal-Mart pays their suppliers when the products are sold to its customers. General Motors has contracts with its suppliers that call for providing tires and other parts based on production schedules and paying suppliers based on the actual production of cars.

11-2. The major controls that a company such as General Motors will consider in such a partnering relationship include:

• A contract specifying the requirements of each party to the contract. For example, the contract should specify the following major requirements of the supplier:

o Penalties for failure to deliver products on time. o Quality control requirements, including inspection and testing to be done either by the supplier or the purchaser. Most contracts require intensive inspection by the supplier. o Responsibility for consumer relation costs incurred because of defective parts. o Payment terms. o Prices. o Verification of receipt procedures. o Delivery responsibility, for example a just-in-time delivery system must specify the order and the configuration of the delivery. o Responsibility for costs incurred if…...

Similar Documents

Chapter 3 Solutions Manual

...CHAPTER 3 SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 3.1 Data Flows: merchandise, payment, cash and register tape Date Source: customer Processes: capture sales and payment, give cash and register tape to manager Storage: sales file (register tape), cash register 3.2 It is usually not sufficient to use just one documentation tool. Every tool documents a uniquely important aspect of a given information system. For example, system flowcharts are employed to understand physical system activities including inputs, outputs, and processing. In contrast, data flow diagrams provide a graphic picture of the logical flow of data within an organization. Each alternative is appropriate for a given aspect of the system. As a result, they work together to fully document the nature and function of the information system. 3.3 Similar design concepts include the following: • Both methods require an initial understanding of the system before actual documentation begins. This insures that the system is properly represented by the diagram. • Both measures require the designer to identify the elements of the system and to identify the names and relations associated with the elements. • Both methods encourage the designer to flowchart only the regular flows of information and not to be concerned with unique situations. • Both approaches require more......

Words: 1742 - Pages: 7

Taxation Solutions Chapter 1

...x Chapter 1 Summary of End-of-Chapter Problem Revisions |2012 Edition |2011 Edition | | |Problem Number |Problem Number |2012 Edition Modifications | |1 |1 | | |2 |2 | | |3 |3 | | |4 |4 | | |5 |5 | | |6 |6 | | |7 |7 | | |8 |8 | | |9 |9 | ...

Words: 10994 - Pages: 44

Chapter 11

...GEB2112 Module 6 Chapter 11 1. Why is developing a financial plan so important to an entrepreneur about to launch a business? A financial plan is like a road map to success. Using one will help keep you on track, help you from over spending, and maximize revenue 2. How should a small business manager use the 12 ratios discussed in this chapter? They should use the right mix of ratio’s that will give the best picture of the business’s health. Looking at each ratio will help to determine which set or grouping of the 12 ratios are the best for the business 3. Outline the key points of the twelve ratios discussed in this chapter. What signals does each give a business owner? a) Current ratio b) Quick ratio c) Leverage ratio d) Debt to net worth ratio e) Times interest earned f) Average Inventory turnover g) Average collection period Ratio h) Average payable period ratio i) Net sales to Total assets j) Net profit on sales k) Net profit to assets l) Net profit to Equity 4. Describe the method for building a projected income statement and a projected balance sheet for a beginning business. The method to build a pro forma for beginning a business can be done in many ways. In order to get the most accurate projections you will need statistics from like types of businesses and from neighboring businesses. You can do this by purchasing published information or you might be able to use public information from a......

Words: 309 - Pages: 2

Chapters 9-11 Summary

...Chapter 9 Summary Majority of Chapter 9, Transportation Risk Management, speaks of the Risk Management Process. The Risk Management Process breaks down into four different categories or steps. These steps, not in any particular type of order, include Risk Review and Monitoring, Risk Identity, Risk Analysis and Risk Management. In step 1, risk identification, the goal is to capture as many transportation disruption risks as possible. Some of the techniques that are used for risk identification include brainstorming, interviews, surveys, historical data and documented knowledge. Brainstorming usually can be identified as meetings that are held with knowledgeable members that participate in conversations that create new thoughts and ideas. During brainstorming, they take the original ideas and help make them into a stronger, complete list of risks. Interviews and surveys differ from brainstorming because they are used to capture transportation risk information from individuals while brainstorming is used upon a group of individuals. Historical data and documented knowledge provide a collection of information about specific transportation activities, service providers and trade lanes. (Coyle, P. 295) Some of the common transportation disruption risks include product loss, product damage, product contamination, delivery delay, supply chain interruption and security breach. Product loss consists of product pilferage, shipment jettison, piracy and hijacking. Product damage......

Words: 1792 - Pages: 8

Chapter 11

...Chapter Eleven Marketing: Building Profitable Customer Connections Questions 1. How does the American Marketing Association define marketing? How can marketers deliver value to their customers over the long term? How do they define America Marketing Association, as the activity, set of institutions, and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. How can marketers deliver value to their customers over the long term, they have to deliver value to customers with by successful marketers deliver by customer needs in ways that exceed their expectations. 2. What are the 4 different kinds of utility that marketers can provide? Give an example (not from the book) of a product that delivers each type of utility. |Type of Utility |Example | |Form |iPhone | |Time |Drive through open 24/7 | |Place |Cafeteria on campus | |Ownership |Laptop ...

Words: 480 - Pages: 2

Chapter 5 Solution

...Chapter 5 Basic Stock Valuation ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS 5-1 See the model or the printout of the model provided at the end of this set of answers. There we show how to find the stock price under some assumed conditions. 5-2 Again, see the model or the model printout. We show some alternative conditions, or scenarios, and the stock price under those scenarios. 5-3 Again, see the model or the model printout. We show how to use Excel to find the stock price under conditions of nonconstant growth. Note, though, that we do assume constant growth after some number of years. 5-4 Again, see the model or the model printout. Everything up to this point could be found fairly easily with a calculator, but it would be difficult to get an exact solution to Question 4 with a calculator. In the model, we show how to use Excel Goal Seek function to find the expected rate of return. 5-5 Dividend growth models are most appropriate for large, stable, companies that pay dividends and are expected to grow at a relatively constant rate. They can also be applied to companies that pay dividends, or that are expected to pay dividends in the forecastable future, but here the analysis becomes more speculative. Mechanically, it is easy to deal with virtually any situation using Excel, but remember the old saying, GIGO, or Garbage In, Garbage Out. It is especially difficult to justify using the discounted dividend model for tech stock IPOs, where the......

Words: 6798 - Pages: 28

Mat 540 Week 2 Quiz 1 Chapter 1 and 11 Solution

...MAT 540 Week 2 Quiz 1 Chapter 1 and 11 Solution Follow www.hwmojo.com link below to purchase Solution http://www.hwmojo.com/products/mat540-quiz-1 We have all homework problems, assignments, quizzes, midterm exam, final exam and discussions for MAT 540. Email us support@hwmojo.com Mat 540 Quiz 1 Week 2 Chapter 1 and 11 Solution Introduction to Management Science, 11e (Taylor) Chapter 1 Management Science 1) Management science involves the philosophy of approaching a problem in a subjective manner. Answer: Diff: 1 Page Ref: 2 Section Heading: The Management Science Approach to Problem Solving Keywords: scientific approach AACSB: Analytic skills 2) Management science techniques can be applied only to business and military organizations. Answer: Diff: 1 Page Ref: 2 Section Heading: The Management Science Approach to Problem Solving Keywords: scientific approach, problem solving AACSB: Analytic skills 3) Management scientists use the terms "data" and "information" interchangeably--that is, the two terms mean the same thing Answer: Diff: 2 Page Ref: 4 Section Heading: The Management Science Approach to Problem Solving Keywords: data AACSB: Analytic skills 4) A management science solution can be either a recommended decision or information that helps a manager make a decision Answer: Diff: 2 Page Ref: 5 Section Heading: The Management Science Approach to Problem Solving Keywords: model,......

Words: 8466 - Pages: 34

Chapter 11 Governmental

...Chapter 12 Not-for-Profit Organizations ------------------------------------------------- Questions for Review and Discussion 1. (a) Resources restricted as to purpose: must be used for research; conferences; acquisition of plant and equipment; (b) Resources restricted as to time: a term endowment — the principal must remain intact for a specified period of time; thereafter it is available for expenditure; pledges receivable that will not be fulfilled in the same period (since the resources are unavailable for expenditure until the pledge is fulfilled). (c) Resources restricted until the occurrence of a specific event: a life annuity — the principal and income must be used to provide income for the donor until the donor’s death. Thereafter it can be expended. Resources permanently restricted: An endowment — the principal of which must be kept intact permanently; only the income is available for expenditure. 2. Restricted contributions should be recognized as revenue in a restricted fund when the contribution (even if only a pledge) is received. Expenses should be recognized in an unrestricted fund when the funds are used. As the contributions are used, the restrictions are met, and the resources are released from the restricted to the unrestricted categories. The FASB reasoned that donors control only how contributed resources may be used. They do not control the timing of expenses or the specific activities in which the organization......

Words: 4923 - Pages: 20

Accounting Chapter 11 and 12

...Week Six Homework – Chapter 11 & 12 Accounting S11-7 1. Earnings = Net income − preferred dividends per share /average number of common shares outstanding 2. Earnings per share of common stock: Income (loss) from continuing operations Income (loss) from discontinued operations Income (loss) before extraordinary item and cumulative effect of change in accounting principle Extraordinary gain or loss Cumulative effect of change in accounting principle Net income (net loss) 3. Earnings per share is useful because it relates a company’s income to one share of the company’s stock. Stock prices are quoted at an amount per share. Earnings per share is used to help determine the value of a share of stock. S11-12 1. Management of Ashburnham Computer, Inc. is responsible for the company’s financial statements. 2. The accounting standard for financial statements is accounting principles generally accepted in the United States of America. 3. Management has established and maintains internal accounting control over financial reporting to fulfill its responsibility for reliable financial information. 4. Independent Registered Public Accounting Firm, auditors located in Portage, Michigan, gave an outside opinion on Ashburnham’s financial statements. Independent Registered Public Accounting Firm released its opinion on December 28, 2010. 5. The audit covered Ashburnham’s balance sheets at September 30, 2010, and......

Words: 543 - Pages: 3

Accounting Chapter 7 Solutions

...------------------------------------------------- Chapter 7 Stocks, Stock Valuation, and Stock Market Equilibrium ------------------------------------------------- ANSWERS TO END-OF-CHAPTER QUESTIONS 7-1 a. A proxy is a document giving one person the authority to act for another, typically the power to vote shares of common stock. If earnings are poor and stockholders are dissatisfied, an outside group may solicit the proxies in an effort to overthrow management and take control of the business, known as a proxy fight. The preemptive right gives the current shareholders the right to purchase any new shares issued in proportion to their current holdings. The preemptive right may or may not be required by state law. When granted, the preemptive right enables current owners to maintain their proportionate share of ownership and control of the business. It also prevents the sale of shares at low prices to new stockholders which would dilute the value of the previously issued shares. Classified stock is sometimes created by a firm to meet special needs and circumstances. Generally, when special classifications of stock are used, one type is designated “Class A”, another as “Class B”, and so on. Class A might be entitled to receive dividends before dividends can be paid on Class B stock. Class B might have the exclusive right to vote. Founders’ shares are stock owned by the firm’s founders that have sole voting rights but restricted dividends for a......

Words: 5843 - Pages: 24

Investment Chapter 11 Answer

...CHAPTER 11 – CALCULATING THE COST OF CAPITAL Questions LG1 11-1 How would you handle calculating the cost of capital if a firm were planning two issue two different classes of common stock? Solution: As the two different classes of common stock are likely to have different component costs, calculate the cost and weight for each separately. LG2 11-2 Why don’t we multiply the cost of preferred stock by 1 minus the tax rate, as we do for debt? Solution: Because dividends on preferred stock, unlike interest on debt, are paid out of after-tax income. LG2 11-3 Expressing WACC in terms of iE, iP, and iD, what is the theoretical minimum for the WACC? Solution: The theoretical minimum WACC would be that for an all-debt firm: iD × (1-TC) LG3 11-4 Under what situations would you want to use the CAPM approach for estimating the component cost of equity? The Constant-Growth model? Solution: You would want to use the CAPM when you can estimate the firm’s beta with a good deal of certainty: you would only want to use the constant-growth model if the firm’s stock is expected to experience constant dividend growth. LG3 11-5 Could you calculate the component cost of equity for a stock with nonconstant expected growth rate in dividends if you didn’t have the information necessary to compute the component cost using the CAPM? Why or why not? Solution: You could try and adjust the constant growth model for initial periods of nonconstant growth, but doing so......

Words: 3395 - Pages: 14

Chapter 11 Intermediate Accounting

...CHAPTER 11 Depreciation, Impairments, and Depletion ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | Concepts for | |Topics |Questions | |Exercises |Problems |Analysis | |1. |Depreciation methods; meaning of |1, 2, 3, 4, 5, 6, | |1, 2, 3, 4, 5, 8, |1, 2, 3 |1, 2, 3, 4, 5 | | |depreciation; choice of depreciation |10, 14, | |14, 15 | | | | |methods. |20, 21, 22 | | | | | |2. |Computation of |7, 8, 9, 13 |1, 2, 3, 4 |1, 2, 3, 4, |1, 2, 3, |1, 2, 3 | | |depreciation. | | |5, 6, 7, |4, 8, 10, 11, 12 | | | | | | |10, 15 | | | |3. |Depreciation base. |6, 7 |5 |8, 14 |1, 2, 3, |3 | | | ...

Words: 21765 - Pages: 88

Cover of for Chapter 11

...FOR – Chapter 11 The research contained within the second FOR of chapter 11 covers the topic of “blurting”. “Blurting” is talking about one’s feelings or thoughts without any sort of filter or forethought. This study found that many people who reported being a “chronic blurter,” often report blurting incidents as being, “Negative or regrettable comments”. The study also found that socially, “Blurting is associated with a variety of less-than-positive traits”. A good hypothetical example of this would come from an interaction between two people shopping for clothes together. One of the two is fit and the other, overweight. When the overweight individual tries on a shirt that is a bit tight on them and asks for an opinion form their fit friend, the friend blurts out, “I like the shirt, but it would fit better if you lost some weight”. If the fit friend had thought through the impact that their comment might have on their overweight friend, they probably would not said what they did, or would have found a different way to get their point across. One concept from Adler, Rosenfeld, and Proctor II’s work that can be linked into this FOR is the definition of competent communication. According to chapter 1, competent communication is both effective and appropriate. Blurting has been shown to be, quite often, the complete opposite of both of these things. As it is often, “Associated with a variety of less-than-positive traits,” it is often inappropriate; and in turn, it is......

Words: 507 - Pages: 3

Ap Governemtn Chapter 11

...Notes: Chapter 11 “Congress” I. Introduction 1. The Congress that the U.S. and most Latin American countries has is different from the Parliament that most European nations have because in Europe, a person who wants to run for office must persuade his party to nominate him, while in America, politicians can run for themselves. i. In Europe, people vote for parties; in America, they vote for individuals. ii. In primaries, people vote especially for a “person” (and his qualities, traits, etc…), and in general elections, this is sometimes true also. iii. In parliament, legislators can support their leaders or not, and if they don’t then new leaders (prime minister and various cabinet members) must be elected. a. This ensures that more action can occur, since the parties of the executive and legislative branches are practically always the same. iv. Congress is free from the turmoil of possible collapsing executive branches and is more powerful to make decisions; Congressmen don’t have to worry about easily losing their positions come another election. a. In Congress, there is less cohesion in bill passing, and less stuff can get done. v. Parliaments members usually engage in debate, are poorly paid, have little independent power, and receive little power as well. vi. Meanwhile, Congressmen are much better paid, have more power, do many......

Words: 6015 - Pages: 25

It113 Chapter 11

...Chapter 11 Master It 1. What is the active component that a patch cord is plugged into when it is attached to a network connected device, such as a desktop computer? 2. What type of switch, and over what type of cabling, are workstation connections funneled into in a hierarchical star network? 3. What type of switch, and over what type of cabling, are workgroup switches connected? Solution 1. Patch cords are plugged into workstation ports. These are either part of the motherboard or part of a network interface card. 2. All workstation connections are connected to workgroup switches using horizontal cabling. 3. Workgroup switches are connected to core switches using backbone cabling. Master It 1. You are asked to specify a pluggable module for 850nm transmission over multimode fiber at 1Gbps with an LC connector interface. What module do you need to order? 2. You are asked to specify a pluggable module for 1310nm transmission over single-mode fiber at 10Gbps from one building to another. The IT manager wants you to order the smallest possible form factor. What module do you need to order? Solution 1. 1000Base-SX SFP mini-GBIC supports operation at 1Gbps over multimode fiber with an LC connection. 2. 10GBase-LR SFP+ module would provide you the smallest form factor transceiver for 1310nm operation over single-mode fiber. Master It You have nine users who have 100Base-T NIC cards on their computers. The 12-port workgroup switch......

Words: 613 - Pages: 3