On May 15,Tumbleweed,Inc

question 121

True/False

On May 15,Tumbleweed,Inc.purchased notes of Dansell Corp.for $80,000.This is considered to be an available-for-sale debt investment.This is the company's first and only investment in available-for-sale debt securities.On Tumbleweed's September 30 year-end,the notes had a fair value of $85,000.The $5,000 difference in fair value must be reported on Tumbleweed's income statement as a $5,000 unrealized gain.

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Definitions:

Aggregate Planning

Involves developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.

Demand Information

Data regarding customer requirements for products or services, used for planning production and inventory levels.

Bullwhip Effect

A phenomenon in supply chain management where small variations in demand at the retail level cause increasingly larger variations in demand at the wholesale, distributor, and manufacturer levels.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice where supply chain partners share information and resources to better predict demand and optimize supply.