You Are the Accountant for a Large Grocery Store That

question 80

Essay

You are the accountant for a large grocery store that uses a periodic inventory system.In a recent meeting, the owner of the store mentioned to you that he had heard that a perpetual inventory system might have some managerial advantages.He asked you to prepare a memo explaining the differences between periodic and perpetual inventory systems, how the change would alter the work that must be done and what advantages a perpetual system might bring.
Required:
Prepare the memo requested by your client.

Understand how to provide detailed reasons for bad news in a manner that is clear yet considerate.

Recognize the importance of maintaining a positive relationship with the recipient despite delivering bad news.

Know the guidelines for making a clear statement of bad news when organizing a negative message using the indirect method.

Understand how to effectively close a negative message to build goodwill.

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Definitions:

Raw Materials Inventory

The total cost of all the raw materials that are currently in stock and awaiting processing.

Specialty Key Chains

Products designed and manufactured with unique features or for specific niche markets, often used for personalization or as collectibles.

Obligation

A duty or commitment to fulfill an agreement, such as repaying a loan or delivering goods or services as contracted.

Liability

A financial obligation or debt that a company or individual owes to another entity.