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Question:
(a) Evaluate the role of management accountants and their value as part of an integrated system.
(b) TNG SDN BHD expects annual demand for product X to be 255,380 units. Product X has a selling price of RM19 per unit and is purchased for RM11 per unit from a supplier, MKR SDN BHD. TNG places an order for 50,000 units of product X at regular intervals throughout the year. Because the demand for product X is to some degree uncertain, TNG maintains a safety (buffer) inventory of product X which is sufficient to meet demand for 28 working days. The cost of placing an order is RM25 and the storage cost for Product X is 10 cents per unit per year. TNG normally pays trade suppliers after 60 days but MKR has offered a discount of 1% for cash settlement within 20 days.
TNG SDN BHD has a short-term cost of debt of 8% and uses a working year consisting of 365 days.
REQUIRED
(i) Critically discuss the limitations of the Economic Order Quantity model as a way of managing inventory.
(ii) Discuss the advantages and disadvantages of using just-in-time inventory management methods.
(iii) Critically discuss whether the discount offered by the supplier is financially acceptable to TNG SDN BHD.
Verified Expert
The task pertains to the subject of costing. We are supposed to analyze the technique of Economic order quantity and just in time inventory system of accounting.The role of the management accountant has also been analyzed in the cost management and other key decisions of the company .
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PLEASE GIVE SOME EXAMPLE ABOUT PART (A)IT IS NOT EXPECTED WITH THE MARKS!YOU HAVE TO AN ANSWER WITH REQUIRED MARKS! It should be 1 page word,not only half of pages thank you.
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this assignment part(a)should be one page of the words.Because my lecturer said,10 marks for these question must one 450words Part (a) 650words Part (b)(i) 400 words (ii) 400 words (iii) 500 words
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