Purchase Solution

Merchandise Inventory: common issues and ethical violations

Not what you're looking for?

Ask Custom Question

For retail organizations, merchandise inventory can be an asset or a liability. When it moves along at a healthy clip it is an asset, one that adds to the bottom line. If customers are slow to take to it or, worse, find it unattractive, the merchandise inventory becomes a liability, one that ties up cash and decreases in value over time.

Question:

Discuss on the issues (at least two) in inventory management and the possible ethical violations (at least two) commonly encountered.

Purchase this Solution

Solution Summary

Your commentary includes three issues and four ethical concerns surrounding inventory.

Solution Preview

Inventory management is a critical area, and can be a competitive advantage or disadvantage. For instance, some firms, such as Amazon, do not believe they need to stock items. They just need to be able to tell you about the items and ship them quickly. But the shipping can come directly from the vendor, skipping Amazon's dock altogether. Other firms pride themselves in always (or nearly always) having the item on hand or a reasonable substitute, such as Publix. So, one issue is how much stock to carry, a skeleton of quickly flyers or a full suite of product.

Another issue is how to account for the cost. That is, will the firm use LIFO, FIFO, weighted average or specific ID to allocate costs to ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Motivation

This tests some key elements of major motivation theories.

Introduction to Finance

This quiz test introductory finance topics.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Operations Management

This quiz tests a student's knowledge about Operations Management