Consider an Automobile Manufacturing Company That Manufactures Low Cost Cars

question 91

Essay

Consider an automobile manufacturing company that manufactures low cost cars.Construct a model of control cycle for this organization.

Identify the proper inclusion or exclusion of goods in transit, consigned goods, and goods out on consignment in inventories.

Apply concepts of purchase discounts, purchase returns, and allowances in inventory accounting.

Understand the legal and accounting aspects of FOB shipping point and FOB destination terms.

Differentiate between variable costs (e.g., freight-in costs, production supervisory salaries) that contribute to inventory valuation and those that do not (e.g., freight-out costs, selling costs).

---

Definitions:

Social Psychological Theory

A branch of psychological theory that explores how individual behavior is influenced by the social environment and interactions.

Perceived Behavioral Control

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Theory of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that an individual's intention to engage in a behavior is the principal determinant of whether they will do so, influenced by attitudes, subjective norms, and perceived behavioral control.

Dissonance Theory

A psychological theory suggesting that inconsistency among beliefs, attitudes, or behaviors causes discomfort, leading individuals to change them to reduce the discomfort.