MANAGEMENT AND COST ACCOUNTING

Slides:

Advertisements

Similar presentations

Materials. Introduction Inventory in a company includes stock of raw materials, work-in-progress, finished & semi-finished products, spare components.

Advertisements

Chapter 13 - Inventory Management

Prepared by Hazem Abdel-Al 1 Inventory Planning, Control & Valuation.

CHAPTER 9 Inventory Management. © 2008 Prentice Hall 9-2 Learning Objectives F To determine the costs of holding inventory F To identify the costs associated.

8-1Inventory Management William J. Stevenson Operations Management 8 th edition.

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 12 Inventory Management.

presented by: Kritika chhatwal

Cost Management System Costs Associated with Goods for Sale 1. Purchasing costs include transportation costs. 2. Ordering costs include receiving and.

Operations Management

INVENTORY MANAGEMENT CHAPTER 29. LEARNING OBJECTIVES  Highlight the need for and nature of inventory  Explain the techniques of inventory management.

Inventory Management A Presentation by R.K.Agarwal, Manager (Finance), PFC.

Dr. Mohamed A. Hamada Lecturer of Accounting Information Systems 1-1 PRACTICAL CASES ON CH 6 Inventory Management.

SHORT-TERM FINANCIAL MANAGEMENT Chapter 4 – Inventory Management Prepared by Patty Robertson May not be used without permission.

Chapter 10—Inventory Management Inventory Management.

Inventory Control Models

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Credit and Inventory Management Chapter Twenty.

1-1 Inventory Management Dr. Hisham Madi. 1-2 Inventory management includes planning, coordinating, and controlling activities related to the flow of.

Accounts Receivable and Inventory May 4, Learning Objectives  How and why firms manage accounts receivable and inventory.  Computation of optimum.

1 ANALYSIS OF INVENTORY MODEL Notes 1 of 2 By: Prof. Y.P. Chiu 2011 / 09 / 01.

Managing Goods Chapter 16. FactoryWholesalerDistributorRetailerCustomer Replenishment order Replenishment order Replenishment order Customer order Production.

Chapter 13 - Inventory Management

Use with Management and Cost Accounting 8e by Colin Drury ISBN © 2012 Colin Drury Use with Management and Cost Accounting 8e by Colin Drury.

Chapter 12 – Independent Demand Inventory Management

Inventory Management for Independent Demand

Management and Cost Accounting, 6 th edition, ISBN © 2004 Colin Drury MANAGEMENT AND COST ACCOUNTING SIXTH EDITION COLIN DRURY.

Inventory Management Chapter 13.

Inventory. The amount of material, a company has in stock at a specific time is known as inventory or in terms of money it can be defined as the total.

Independent Demand Inventory Management

13-1 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Solved Problems Chapter 12: Inventory 1. Solved Problem The data shows projected annual dollar usage for 20 items. Exhibit 12.3 shows the data sorted,

Copyright  2005 by Thomson Learning, Inc. Chapter 4 Managing Inventory I N V.

CHAPTER 9 Inventory Management.

MATERI XI PRODUKSI & OPERASIONAL. 5 ISSUES That arise when trying to produce a product or service Capacity (How much can I produce) Scheduling (How am.

Cost and Management Accounting: An Introduction, 7 th edition Colin Drury ISBN © 2011 Cengage Learning EMEA CHAPTER 3 Accounting for.

1 Chapter 6 –Inventory Management Policies Operations Management by R. Dan Reid & Nada R. Sanders 4th Edition © Wiley 2010.

20-0 Inventory Costs Carrying costs – range from 20 – 40% of inventory value per year Storage and tracking Insurance and taxes Losses due to obsolescence,

1 Inventory Control Operations Management For Competitive Advantage, 10 th edition C HASE, J ACOBS & A QUILANO Tenth edition Chapter 14.

Revise Lecture 23.

BUAD306 Chapter 13 - Inventory Management. Everyday Inventory Food Gasoline Clean clothes… What else?

Costing and accounting system Session 1-2. Types of inventory Direct material ▫Which represent direct material in inventory awaiting manufacture. Work.

Real-time management of inventory for items Inventory Concept LOGISTIC & WAREHOUSING.

Inventory Management. Nature of Inventory Stocks of manufactured products and the material that make up the product. Components: –raw materials –work-in-process.

Inventory Management for Independent Demand Chapter 12.

CHAPTER 13 INVENTORY MANAGEMENT. THE CONCEPTS Crucial for low profit margin, low cost strategy Determining appropriate inventory level by conflicting.

What types of inventories business carry, and why they carry them.

Operations Fall 2015 Bruce Duggan Providence University College.

Receivables Management and Factoring. Nature of Credit Policy Investment in receivable –volume of credit sales –collection period Credit policy –credit.

Week 14 September 7, 2005 Learning Objectives:

Chapter 4 Inventory Management. INVENTORY MANAGEMENT Stockpile of the product, a firm is offering for sale and the components that make up the product.

CHAPTER 8 Inventory Management © Pearson Education, Inc. publishing as Prentice Hall.

INVENTORY MANAGEMENT BY, Vivek Barad Aditya Deshmukh Aditya Chandra Abhinav Pathak.

Chapter 13 - Inventory Management

Types of Inventories (manufacturing firms) (retail stores)

Part Six: The application of quantitative methods to management accounting Chapter Twenty-four: Quantitative models for the planning and control of inventories.

Operations Research Lecture 11.

Basics of financial management Chapter 6

Functions of Inventory

INVENTORY MANAGEMENT Stockpile of the product, a firm is offering for sale and the components that make up the product. The management of inventory.

LEARNING OBJECTIVES Highlight the need for and nature of inventory

Chapter 4 Inventory Management.

Chapter 13 - Inventory Management

NATCOR Stochastic Modelling Course Inventory Control – Part 1

presented by: Kritika chhatwal

Ch. 17: Working Capital Management

Chapter 12 Inventory Management.

Accounts Receivable and Inventory Management

Chapter 17 Inventory Control.

Chapter 12 Inventory Management.

Chapter 9 Inventory management.

Chapter 12 Inventory Management.

Presentation transcript:

MANAGEMENT AND COST ACCOUNTING SIXTH EDITION COLIN DRURY

The application of quantitative methods to management accounting Part Six: The application of quantitative methods to management accounting Chapter Twenty-five: Quantitative models for the planning and control of stocks © 2000 Colin Drury

PLANNING AND CONTROL OF STOCKS 25.1 PLANNING AND CONTROL OF STOCKS 1. Reasons for holding stocks • Transaction motive • Precautionary motive • Speculative motive 2. Relevant costs required for determining EOQ • Holding costs • Ordering costs 3. Holding costs • Opportunity cost of investment in stocks • I ncremental insurance costs • Incremental warehouse and storage costs • Incremental material handling costs • Costs of deterioration and obsolete stocks 4. Ordering costs • Incremental clerical costs of preparing a purchase order, receiving deliveries and paying invoices. © 2000 Colin Drury

25.2 Determining the EOQ © 2000 Colin Drury

Economic order quantity graph 25.3 Economic order quantity graph © 2000 Colin Drury

25.4a EOQ formula © 2000 Colin Drury

Determining the length of a production run 25.4b Determining the length of a production run © 2000 Colin Drury

25.5 Quantity discounts © 2000 Colin Drury

Determining when to place the order Assume: EOQ = 600 units; Lead time = 2 wks; Usage per wk = 120 units Re-order point = 2 weeks × 120 units = 240 units. With an EOQ of 600 units orders will be placed at five-weekly intervals. © 2000 Colin Drury

25.6b Uncertain demand If weekly demand exceeds 120 units there will be a stockout. Therefore safety stocks are maintained and re-order point is: (Average usage during average lead time) + (Safety stocks) © 2000 Colin Drury

25.6c Uncertain demand contd. © 2000 Colin Drury