Question

Answer the following question

1)identify three types of inventory that are contained on a manufacturers balance sheet

2) Explain how cost of goods sold flows from the finished goods inventory account to the income statement

3) Which business trend to you think is affecting managerial accounting the most in today’s business’s and why?

4) Pick an activity in the value chain and describe how it can add value to a product (you may pick a product to use as part of your example).

Answer 1

1,Three types of inventory that are contained on a manufacturers balance sheet is as follows,

a) Raw materials:- raw materials are first inventory waiting to be worked on.

b)work in progress:-raw materials which are being worked on.

c) Finished goods:-. Final products which are ready for sale.

2, It is essential for manufacturing firm,When completed goods are sold, their costs are transferred out of finished goods inventory into the cost of goods sold . An expense account on the income statement that represents the product costs for all goods sold during the period.This helps the manufacturer to know the income from business.

3, Managing information technology and shared services as business is the trend mostly affecting managerial accounting. Nowadays offline business are converted into online. Online shopping and using online related services are increasing day by day. so utlizing and manage information technology is essential for the existence of the company. At this time managerial accounting helps the management to take right decisions.

4,Sales and marketing activities in a leading fast food firm. The firm mission is to provide customers with low priced food items.The firm has pre- selected , low-cost supplier for the raw materials for their food items.suppliers like vegitables and meat. Open some franchises and implementation of new counter service, self service. Firm provide new advertisement in media and print advertisement including social media posts and magazine.These kind of sales marketing activities leads to increase the value of the product. Marketing techniques induce the targeted customers and helps to achieve target sales