Sumo Pty Ltd Makes Submarines for Coastal Holiday Resorts

question 11

Multiple Choice

Sumo Pty Ltd makes submarines for coastal holiday resorts.The small submarines hold around ten passengers and one driver and are used for diving up to ten metres to examine reefs and sea life.Sumo Pty Ltd exports the submarines around the world and last years total revenue was $45 million.This year, revenue is expected to be $80 million with about 70% export revenue.Sumo Pty Ltd is owned jointly by two brothers Harry and Barry Jones.They employ 85 full time staff from their single factory outside Noosa on the Sunshine Coast of Queensland.Sumo Pty Ltd is likely to be a:

• A)non-reporting entity because there is little separation of ownership from management
• B)reporting entity because of its financial and economic importance
• C)non-reporting entity because of its lack of political importance
• D)reporting entity because of its large percentage of export revenue to total revenue

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Definitions:

Replenishment Lead Time

The duration between placing an order for additional stock and its delivery, crucial for inventory management and avoiding stockouts.

Popinjay Products

Refers to products offered by the brand Popinjay, often implying a focus on vibrant and distinctive offerings. If no such brand exists, this could be considered a fabricated term.

Annual Holding Cost

The total expenses associated with storing unsold goods or materials for a year, including warehousing, insurance, depreciation, and obsolescence costs.

UPS

United Parcel Service, a global parcel delivery and supply chain management company.