You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash? You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash?

You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash? You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 6DQ

See similar textbooks

Similar questions

Identify potential internal controls and how it can address certain risk/issue. You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash?
The top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with a credit card or debit card. Previously, the restaurant has accepted only cash.What information could the management accounting department supply to assist management with this decision?
You are working as a summer intern at a rapidly growing organic food distributor. Part of your responsibility is to assist in the accounts payable department. You notice that most bills from suppliers are not paid within the discount period. The manager of accounts payable says the bills are organized by vendor, like the accounts payable ledger, and she is too busy to keep track of the discount periods. Besides, the owner has told her that the 1% and 2% discounts available are not worth worrying about.
Which of the following is not a reason for the Jones Hardware Store to accept credit cards from customers? Group of answer choices A)Jones can receive its money faster than if it directly extended credit to the customer by an account receivable. b)The credit card company offers a discount to Jones so that Jones will have more money available for operations. C)Jones will not have to be concerned with nonsufficient funds checks from customers. d)Jones will not have to have extra office workers to make phone calls to customers requesting collections on accounts. E)All these are reasons to accept credit cards.
Craig, owner of Craig's Design and Landscape, takes advantage of cash discounts when purchasing from vendors whenever possible. Discuss the business reason for this decision. How does taking these discounts affect his overall expenses, cost of goods sold and net income? Then address the ethical ramifications if Craig would take the discount when paying out the discount period.
You decide to start a business selling covers for smart phones in a mall kiosk. To buy inventory, you need to borrow some funds. Why are you more likely to take out a bank loan than to issue bonds? Do you have other options?
Tri-City Grocers is a chain of grocery stores that just hired a new CFO. Which of the following actions would you expect this CFO to adopt given her statement that she wants to implement a more flexible financing policy for the firm? I. Easing the credit terms given to customers II. Increasing the amount of inventory carried by each grocery store III. Borrowing funds to keep more cash available for store operations IV. Decreasing the firms' investments in marketable securities Group of answer choices A. II, III, and IV only B. I, II, III, and IV C. II and IV only D. I, II, and III only
You are working as a summer intern at a rapidly growing orgainc food distribution. Part of your responsibility is to assist in the accounts payable department. You notice that most of the bills are not paid with in discount period. The manager of the accounts payable sees the bills are organized by vendor, like the accounts payable ledger, and she is too busy to keep track of the discounts period. Besides, the owner has told her that The 1% and 2% discount available or not worth worrying about. 1. Explain to the owner why it is expensive not to take it advantage to cash discounts on credit purchases. suggest a way to file (organize) suppliers invoices so that they are paid with in the discount period.
You are an accounting student at Berkeley College and will not graduate for another year. But because of your excellent grades so far, you have been able to land a job in the purchasing department of a retailer. One of the purchasing agents in your company is negotiating for the receipt of a very large order of uninsured goods from a supplier. The purchasing agent is able to get a better deal on the goods if they are shipped FOB shipping point rather than FOB destination. The agent doesn’t know the difference between these two concepts. He also doesn’t understand why choosing one over the other should make any difference to the company. As a student of accounting at Berkeley College, you know well the difference between these 2 concepts and you know why one would be a better choice over the other in the case of uninsured goods. Please explain these two concepts in this discussion and tell the purchasing agent which shipping method is preferable and why.
You are a frequent visitor to Jelmoli Hyper Elite market in an upmarket location of Dusseldorf city near Frankfurt. Almost all the time when you visit the Elite Market you queue for a certain period of time and become frustrated and leave the queue and this is called as: a. Queue discipline b. Rejecting c. Reneging d. Baulking Just Born is a popular chain of retail outlets operating in Sultanate of Oman. The organization plans very effectively for their yearly operations in the Sultanate. Which of the following do their advanced planning systems for aggregate planning heavily depend on? a. The supply chain b. Forecasting c. Constraints d. Data accuracy
Khimji Ramdas is a leading importer of food grains in Oman. Most of the sales of the business is on wholesale to different retailers across Oman. Mr Khimji the owner is in charge of imports. He finds that more than the sales, the Accounts receivable are increasing. Unhappy with the present accountant Mr Khimji appoints you on 1st April 2019 as a receivables manager to improve the cash collection from credit sales. He wants you to show him the actual position of his accounts receivables at the end of every month. You have collected details from the present accounts department relating to sales and receivables. The credit sales of March was RO 385,500 and Accounts receivables balance was RO 330,240. In April you have started to work on getting the details of ageing receivables. Your find that the Store of one of our receivable Mr Taajir from salalah on whom RO 3000 has been destroyed due to Gonu in Salalah. This amount appears to be uncollectable. On discussion with Mr Khimji it was…
Your friend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires her goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are primarily for cash. Geiger keeps her own manual accounting system using a general journal and a general ledger. At the end of each business day, she records one summary entry for cash sales. Geiger recently began offering items in creative gift packages. This has increased sales substantially, and she is now receiving orders from corporate and other clients who order large quantities and prefer to buy on credit. As a result of increased credit transactions in both purchases and sales, keeping the accounting records has become extremely time- consuming. Geiger wants to continue to maintain her own manual system and calls you for advice. Write a memo to her advising how she might modify her current manual accounting system to accommodate the expanded business activities. Geiger is…