Discuss the Role of Operations Management in Business

question 42

Essay

Discuss the role of operations management in business.

Appreciate the importance of adhering to principles such as full disclosure and consistency in inventory accounting.

Apply the concept of the lower of cost or net realizable value (NRV) in inventory valuation.

Understand the operational and financial considerations in selecting inventory systems (perpetual or periodic) and costing methods.

Calculate and interpret inventory turnover ratio and understand its implications on business efficiency.