Exam (elaborations)
Aue2602 Assignment 4 Semester 1 2024
- Course
- Institution
- Book
Aue2602 Assignment 4 Semester 1 2024
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
AUI3702 EXAM PACK 2024/2025
-
AUE2601 Assignment 2B (COMPLETE ANSWERS) Semester 2 2024 - DUE 19 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
-
AUE2602 ASSIGNMENT 2 (COMPLETE ANSWERS) SEMESTER 2 2024
Seller
Follow
ExpectviewTutors
Reviews received
Content preview
a) Two risks relating to the production needs of BubblyFizz (Pty) Ltd areoverproduction and underproduction. Overproduction can lead to excess inventory,
resulting in storage costs, potential obsolescence, and tying up valuable working
capital. On the other hand, underproduction can lead to stockouts, lost sales
opportunities, and dissatisfied customers.
To address these risks, manual controls that could be implemented include
implementing a production planning process based on demand forecasts and
historical sales data. This will help ensure that production levels are aligned with
actual customer demand. Additionally, regular review meetings between production
and sales teams can help identify any discrepancies in forecasted versus actual
demand and adjust production accordingly.
b) Weaknesses in the controls over BubblyFizz's inventory and production cycle
include:
1. Lack of real-time inventory updates: The manual process of updating inventory
records at the end of the week increases the risk of inaccuracies in inventory levels.
Potential consequence: Outdated or incorrect inventory records leading to stockouts
or excess inventory.
2. Unauthorized access to Cloves-Accounting system: Staff using Mrs Pepsi's
password to update records poses a security risk as it allows for unauthorized
access to sensitive information. Potential consequence: Data breaches, fraudulent
activities, and compromised financial information.
3. Inconsistent inventory valuation methods: Disagreement between directors on
valuation methods can lead to inconsistencies in reporting financial results. Potential
consequence: Misstated financial statements and inaccurate decision-making based
on unreliable data.
4. Lack of reconciliation procedures for physical counts: Without established
procedures for reconciling physical counts with system records, there is a risk of
misstatements in inventory balances going undetected. Potential consequence:
Errors in financial reporting and inefficiencies in managing inventory levels.
c) [Memo]
[Date]
Mrs Fanta
Financial Director
BubblyFizz (Pty) Ltd
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExpectviewTutors. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.84. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now