Menu

Tony Expressed His Big Concern To John About The Current Huge Cash Flow Tied Up In The Inventory Stored In The Warehouse

0 Comment

br/gtltbr/gta) From a financial perspective, should Tony implement therecommendation(s) will you give to Unidac’s management?
(d) Identify three main costs or limitations of an activity-based costing (3 marks)
system.
Question 3 (20 marks)
John Lane is the new appointed financial controller of Sonic Manufacturing Ltd (Sonic).
The company specializes in the manufacture of audio and video devices. John met with
Tony Chan, Sonic’s plant manager, on the first day of work at his new job. Tony expressed
his big concern to John about the current huge cash flow tied up in the inventory stored in
the warehouse. He has been considering the implementation of a JIT production project in
the plant. However, he is unsure about the benefits, given the risks involved for not keeping
adequate inventory for production. John was asked to evaluate the proposal and give himCost Accounting