Summarize on what you understand from the purchase cycle system above WEAKNESS OF THE SYSTEMRECOMMENDATIONSupplier-related issues – Finding a right supplier. Evaluation & monitoring supplier performanceVendor performance impact completion of regarding their quality guidelines & delivery timepurchase cycle on timeline provided.ensure smooth functioning of purchase cycle.Purchase from a licensed wholesaler - should be Before making a purchase order, there should be anensured that the wholesaler has a license to sell the analysis to ensure a safe purchasing cycle. Theproduct.company can identify first that the seller has alicense to sell the wine in the market.Lack of segregation of duties – as there is noTo prevent misuse of influence or error when doingsecond officer to doublecheck the orders, invoices the job, there should be a simple delegation of dutiesand reports made by the clerk.for the person in charge as should be performed by2 staff.No proper records of requirement; ignorance of A safety bracket is to be maintained, for exampleprocedure for ordering and storing on the stock part. wine bottles may not reach in time due to disputes,breakage and thus purchase manager should havestock to last till these issues are resolved.Lack of accurate data: Due to lack of accuracy in Purchase manager must make through evaluation ofthe data of the inventory purchase department may the stock and must maintain accurate data ofgive wrong orders that might create excess of inventory example check the amount and quality ofinventorygoods and its supporting documents to ensure thatthey are correct

Purchase Cycle System- Purchasing Cycle system refers to as system of buying product and service.

Answered: Summarize on what you understand from…

Business

Accounting

Summarize on what you understand from the purchase cycle system

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 12E: Consider the following quality improvement strategy as expressed by a series of if-then statements:...

See similar textbooks

Similar questions

Which of the following statements are true? Multiple select question. Measuring and reporting quality costs does not solve quality problems. The impact of customer ill will is generally not found on quality control reports. As managers become more experienced in balancing prevention and appraisal activities, the need for quality cost reports often increases. Decreases in quality costs generally occur as soon as improvement programs are implemented.
Which of the following statements are true? (Check all that apply.) Multiple select question. Measuring and reporting quality costs does not solve quality problems. As managers become more experienced in balancing prevention and appraisal activities, the need for quality cost reports often increases. Lost sales arising from customer ill will are generally not found on quality control reports. Decreases in quality costs generally occur as soon as improvement programs are implemented.
Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce inspection time.
Changes in external forces translate into changes in consumer demand for both industrial and consumerproducts and services. Discuss importance of the given statement while performing external audit of anorganization.
Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.
Consider the following quality improvement strategy as expressed by a series of if-then statements: If real-time feedback information capabilities improve, then post-sales service time will improve. If post-sales service time improves, then post-sales service quality will increase. If post-sales service quality increases, then customer satisfaction will increase. If customer satisfaction increases, then market share will increase. If market share increases, then sales will increase. If sales increase, then profits will increase. Required: 1. Prepare a strategy map that shows the cause-and-effect relationships of the quality improvement strategy (see Exhibit 13.10 for an illustrative example). 2. Explain how the quality improvement strategy can be tested.
Which of the following would be a hidden quality cost? a. Inspecting and testing prototypes b. Repairing a computer still under warranty c. Stopping work to correct process malfunction (discovered using statistical process control procedures) d. Lost market share due to poor product performance
In a make-or-buy decision, a. the company must choose between expanding or dropping a product line. b. the company must choose between accepting or rejecting a special order. c. the company would consider the purchase price of the externally provided good to be relevant. d. the company would consider all fixed overhead to be irrelevant. e. None of these.
In the evaluation of sales transaction processing and control design in the following information:(a)identify two or three potential weaknesses. breifly explain the potential mistatement, recommended correction and possible weakness of all two or three potential weaknesses identified. ORDER APPROVAL In Marco Appliance Inc., Every few minutes (immediately if things are slow), one of the salesclerks hand-carries the pending requisitions to Dakota Amalia, the controller. The secretary presents them to Ms. Amalia who approves them either immediately, based on first-hand knowledge of the customer's credit record, or after reviewing the customer's account record on her PC. Ms. Amalia initials the requisition to indicate approval of the sale and enters an approval for the requisition in the accounting system. When Ms. Amalia enters her approval code, the system creates and prints three copies of a sales order form; assigns a sequential number to it; and moves the sales order record in the…
The cost of lost future sales after a customer finds a defect in a product is which type of quality cost? a. Prevention cost b. Appraisal cost c. Internal failure cost d. External failure cost
A determination of cost savings obtained by outsourcing cafeteria services is most likely to be an objective ofa. Environmental auditing.b. Financial auditing.c. Compliance auditing.d. Operational auditing.
The cost of lost future sales after a customer finds a defect in a product is which type of quality cost? Prevention cost Appraisal cost Internal failure cost External failure cost