Professional service firms don’t sell products, rather they sell their time and expertise. The common problem is that many smaller firms see the profits generated from their services, but they overlook their losses from poor inventory management and fixed asset management. Even worse, they sometimes manage and track them in the same manner. To make things a bit more complicated, inventory management and fixed asset management are not one and the same. The goal here is to explain the difference between the two and, to explain the importance of utilizing proper accounting for fixed asset management.
In the professional services world, inventory management is a slightly different from the retail and the production world. In the latter, inventory assets represent the items sold by a retailer or the materials used to create a final product that will be sold. On the hand, inventory assets in professional services represent the materials they use to provide a service, such as binders and other office ...
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- 1-1 Introduction The purpose of this chapter is to present the background of the research problem and how we creating our research question. The delimitation 's, research gap and the expected role that the study can bring will be tested in the later part of the chapter. 1-2 Nature of the problem Actually, most of the recent finance researchers have generally focused on large size companies deep understanding of long-term financial decisions, which include investments types, the capital source of fund, earnings dividends or corporation assessment decisions.... [tags: Asset, Balance sheet, Inventory]
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- Spring 2016 Walgreen Co. The following represents an analysis of the Walgreen Co.’s financial performance during the periods of 2012 through 2014. In preparing the analysis, historical financial statements were reviewed and financial ratios calculated based on those, which are included in Exhibits to this analysis. The calculations are utilized to provide additional insight regarding the ability of Walgreen Co.’s leadership to effectively operate the business. Leadership’s strategic plan for the company, along with comparative information of competitors within the industry, are important elements to consider in addition to the information provided herein.... [tags: Balance sheet, Inventory, Asset]
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- 1. FEASIBLE AND EFFECTIVE IT ASSET MANAGEMENT USING SURFACE ACOUSTIC WAVE-BASED RFID Byung Youn Song & Rajit Gadh & Junghoon Lee & Jae Yeol Lee An office consists of many devices which contain invaluable information and data for which there is no substitute. There are chances that the information is erased or damaged not merely by thieves or hackers, but by the employees themselves. If we are able to detect environmental conditions, severe damage caused by them can be prevented. The factors considered for testing are temperature sensing and acceleration sensing.... [tags: RFID, Radio-frequency identification]
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- User requirements will allow the WASP barcoding system to improve its inventory management, shipping logistics, manufacturing processes, and customer service communication. Current manufacturing processes will need to be modified in order to support the proposed changes to the Inventory Management and Control segment, while minimizing impact to employees and customers. And the proposed enhancements to the Inventory Management and Control segment that need to be supported by the WASP barcoding system will be Raw Material Receiving, Manufacturing with Inventory, Final Product Shipping.... [tags: Case Study, Business, Analysis, solution]
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- The late 90’s ushered in a new economy, IPO-funded .com companies. Apparently, investors believed that this new economy was the next big thing. Consequently, this belief, fostered in over-priced stock value. For instance, companies that had never produced any revenue, witnessed their stock trading at enormous value. Therefore, overnight a lot of executives and employees became millionaires (Ljungqvist, & Wilhelm, 2003). Unfortunately, at the time, there was a myth about how successful these companies would be.... [tags: Inventory, Supply chain management]
854 words (2.4 pages)
- Inventory management system has been practiced in many organizations from various industries. Given the diverse and multi-layered supply chains handling different inventories, organizations utilizing inventory management system can still manage efficiently and effectively their supply and demand flow within crucial transactional activities. In the following discussions, this paper examines the concept of inventory management, different inventory types and inventory management processes, and the function criteria to be considered when selecting inventory management system.... [tags: Supply chain management, Supply chain, Inventory]
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- The first and one of the most important concepts in this case to understand is inventory management and the objectives of good inventory management . Inventory management can be defined as “the practice of overseeing and controlling the quantities of finished products for sale” (“Inventory Management,” n.d.). Thus, in relation to this case, inventory management is the practice of overseeing and controlling the various amounts of food and drinks for sale. Good inventory management is crucial for the overall success of Wegman’s and every other business entity’s operations.... [tags: Inventory, Costs, Cost, Management]
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- Inventories have very little influence as to whether Apple Inc. has the ability to be responsible for current liabilities using their current assets. This fact is a representation that Apple does not rely heavily on inventories to account for assets. This means that Apple has other current, or short-term assets like, cash and cash equivalents, short-term marketable securities, and accounts receivable among other assets, that if needed, could cover the company’s current liabilities. Apple maintains levels of inventory that keep up with consumer demand rather than sitting on inventory that could potentially not move (Apple Inc.... [tags: Balance sheet, Asset, Inventory turnover, Stock]
1292 words (3.7 pages)
- Ratio Analysis Over the three year period from 2011 to 2013 the current ratio has been below the industry average which means it has been less liquid than the industry average. The company is still able to pay its current debts, but the fact that it is lower than the standard may mean that they are borrowing too much, or are not effectively managing their resources. However, it may also mean that they have been borrowing to finance growth, which means that a lower current ratio is not necessarily bad for the company.... [tags: Financial ratios, Financial ratio, Asset]
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- MANAGEMENT ACCOUNTING SYSTEM DESIGN TYPES OF ACCOUNTING INFORMATION 1. FINANCIAL ACCOUNTING INFORMATION • prepared in accordance with generally accepted accounting principles (GAAP) and reported to shareholders and other interested outside parties. • it is built around the single basic equation Assets=Liabilities+Owners’ Equity. 2. MANAGEMENT ACCOUNTING INFORMATION • has three principal purposes, each of which requires a different cost construct. THREE PURPOSES OF MANAGEMENT ACCOUNTING: 1. MEASUREMENT • Cost is a measurement, in monetary terms, of the amount of resources used for some purpose, called a cost object.... [tags: Business Accounting]
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