Management and Organizational Studies 3360A/B Chapter Notes - Chapter 8: Accounts Payable, Common Carrier, Financial Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3360A/B
• Professor: Muhammad Shuja

Document Summary

Inventory planning and control the higher the inventories the higher the cost of looking after them: companies must monitor inventory to: minimize carrying cost, meet customer demands. Recognition: examples of inventoy: securities held by an investment dealer, land and other property held by developers for resale, unbilled employee and partner time spent on clients files in a law office or professional accounting practice, Liability for onerous contracts: when goods are delivered the entry is. Cr accounts payable if the price has partially or fully recovered before inventory received, the liability of onerous contract amount is reduced, a resulting recovery of loss is reported. Cr recovery of loss the cost of goods manufactured represents the product cost of goods that are completed and transferred to finished goods: not in merchandising companies. Ending inventory misstated: eg. items missed in physical count for ending inventory, or put on consignment.