'University Store Case\r'

'first in first out or LIFO In the case, the university stock certificate supplyd plenty of goods and services with various costs. They oft have their costs, selling prices and discounted prices changed. This process would contain a large amount of work since the caudex kept large number of books. Although the remembering has planned to translate data by establishing a new package system, they use the sell method easing and simplifying account tracking. Comparing the FIFO or the LIFO method, the sell method would be the better to value blood line with two major reasons. One reason is that break would accept the report under the retail method.While applying the FIFO or LIFO method, the hive away would calculate diachronic percentages to view ending stock-taking cost. However, they would use the â€Å" catamenia cost-to-retail” ratios, which atomic number 18 more than acceptable and reliable for open frame financial report. The other is that the Store could be aristocratic to record gillyflower. The Store could record numbers including the add cost and purchase retail value, costs and retail prices, and total sales events in a period. Also, the Store sometimes marks up the original sale prices, which should be marked down before calculating ending Inventory.By acquiring same Information, cost-to-retail percentage in FIFO or LIFO method argon able to be calculated with omitting beginning livestock or only using beginning schedule respectively. Causes and Procedures for Inventory Obsolescence The Store realized that they needed to pick out the scroll obsolescence line of work. They have found the large quite a little of â€Å"inactive” books, which could re-adopt in the next semester or could not be returned to publishers. The major causes of this line could be change integrity Into four parts. Firstly. E turnover yard of returns tutor was significantly high in the recent years, causing difficulties to clear the re dundant standards before the new translation published. If the textbooks became antiquated and unable(p) to be returned to publishers, they would be stored in the bookstore or the warehouse, making losses in the financial report. The first map to improve the problem could be to find the reasons of high turnover regularise like large workload, high-pressure environment or unexpected salary. Then, the Store should address the problem with diametrical strategies depending on the reasons. Secondly, the Store distributed little employees to work on arranging the inactive textbooks since total employees were insufficient. This problem caused the obsolete books would stored increasingly making financial losses. To solve the problem, the Store could recruit more employees in array to give birth more attention on the Inactive textbooks If the Store has ability to hire more. Moreover, the Store tried to actively pay back the used books In order to lower costs. TLS caused the Store w ould peradventure obtain the unneeded books, which professors would stop using next semester.These textbooks would be unable to return to the publishers and would become losses for financial reporting. The procedure solving the problem could be firstly intercommunicate professors or teachers whether the used textbooks would be continually used in the future. Next, the Store would be able to square off which book should pay back depending on their requirements and recommendations. pass away but not least, the would lower sales of textbooks recently. If the Store obtained the same number of a specific textbook with decreasing usage, the books would become inactive causing financial losses.In order to solve the problem, the Store could establish a survey well-nigh the decreasing demands or potential cancellations of the books. After that, they could estimate the future inventory of few books with low demands. Inventory Practices Cause Misstatement Risk of Inventory While calculati ng the inventory value, some practices would possibly increase the risk of misstatement. At first, errors would appear in recording distinguishable costs, selling prices and price changes in sale while organizing hundreds of products.The Store should arrange at least two employees to check the values are correct although they eve already faced the problem of insufficient employees, which would cause individual workload increases. Secondly, the odd-job(prenominal) workers with insufficient training and frequent turnover rate would create calculating mistakes. Although heavy reliance of underemployed employees could lower the operating cost, it would increase the risk of inventory misstatement. To detect this possible misstatement, the Store should hire more full-time employees or provide a part to monitor the process of switching different odd-job(prenominal) employees.Also, the revisions of college extols were published more frequently, which increase the risk of inventory miss tatement. The Store needs to obtain the information about the time the revision would be published in the future and content comparison with old version. Likewise, the textbook demand is hard to determine or estimate since currently students are able to purchase cheaper from different sources like friends or online. The Store can provide some promotion or sale to rive the students. It can obtain small volume of inventory, and then(prenominal) decide to purchase more depending on the demand.\r\n'