(Communication) Al Bodkin, a New Employee of Crafter's Paradise, Recorded $1,000

question 190

Essay

(Communication)
Al Bodkin, a new employee of Crafter's Paradise, recorded $1,000 in consigned goods received as part of the firm's inventory. The goods were received one day after the end of the fiscal period, but Al reasoned that the goods should be included in inventory sooner because Crafter's paid the freight. The mistake was brought to his attention by the purchasing department who said the goods should not have been recorded as Crafter's inventory at all. Al told Sid Goza, the purchasing supervisor, that nobody needed to worry, because the mistake would cancel itself out the following month. In Al's opinion, there was no reason to get everyone excited over nothing, especially since it was monthly, and not annual, financial statements that were affected. Sid Goza has reported the problem to the accounting department.
Required:
You are Al's supervisor. Write a memo to Al explaining why the error should have been corrected.

Analyze how savings rates affect the supply of loanable funds, interest rates, exchange rates, and net exports.

Relate macroeconomic policies and political stability to interest rates, exchange rates, and net exports.

Understand the relationship between real interest rates, net capital outflow, and exchange rates.

Evaluate the role and interaction of government budget deficits, investment, and savings in shaping economic outcomes.

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Definitions:

Behavioral Withdrawal

The act of retreating or disengaging from social interactions and activities, often as a coping mechanism for stress or anxiety.

Social Rejection

The act of being deliberately excluded or dismissed by individuals or groups in social or professional contexts.

External and Temporary

Characteristics or conditions outside of an individual that are not permanent or lasting in nature.

Overgeneralized

Referring to a conclusion or generalization that is too broad and not supported by the specific instances or evidence available.