Kretzinger Company Makes Extensive Use of Financial Performance Reports for Each

question 107

Essay

Kretzinger Company makes extensive use of financial performance reports for each of its departments.Although most departments have been reporting favorable cost variances with the company's current inventory system,management is concerned about the overall performance of the purchasing department.For example,the following information is for the purchasing of materials for a product the company has been manufacturing for several years:

Required:
a.Compute the inventory turnover for each year.Can any conclusions be drawn for a yearly comparison of the purchase price variance and the inventory turnover?
b.Identify problems likely to be caused by evaluating purchasing only on the basis of the purchase price variance.
c.What recommendations will improve the evaluation process?

Understand the concept of personal selling and the roles of sales representatives.

Recognize various forms of sales personnel compensation, including commissions, bonuses, and non-financial rewards.

Learn about sales management functions, including planning, directing, and controlling sales activities.

Understand the traits and personal attributes that contribute to a salesperson's success.

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Definitions:

Ambiguous Pictures

Images that can be interpreted in multiple ways or that create an optical illusion, often used in psychological testing.

Conscious Awareness

The faculty of recognizing and contemplating one’s own existence, sensory impressions, intellectual activities, milieu, and experiences encountered.

Psychological Research

The scientific study of the mind and behavior, employing various methods and approaches to understand psychological phenomena.

Urinary Tract Infection

An infection in any part of the urinary system, including the kidneys, bladder, or urethra, usually caused by bacteria.