HTM 2030 Lecture : Inventory Unit.docx

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: Connie Zavitz

Document Summary

Last in, first out (earliest prices, which is most recent price) When inventory is moved to a different area, and not recorded its understated and income is overstated. The value should be identical to the value at the end of the month. An occasional human error in costing out requisitions. Use of the most recent purchase price rather than actual purchases. Mismarking of actual purchase prices when that method is used. Reasons that are never acceptable include: issuing stores without requisitions. Allowing meats to age that they must be discarded theft of food. Midterms question relation : think of a scenario and how would if affect the scenario, cost of goods sold current period, net income for the current period and ending inventory. Business pressures: to reach budgets, meet targets from head office/bank, maintain status as high flier" in organization. Personal pressures: greed, drug/gambling habits, not wanting to admit to problems, financial problems or extravagant lifestyle.