Imagine you are having lunch in the cafeteria at work and you overhear a manager sitting at an adjacent lunch table remark loudly "having all of this excess inventory is evil in so many ways".... Explain why this manager would make this remark.

10-35 (Objectives 10-3, 10-4, 10-5)  The following are misstatements that have occurred in Fresh Foods Grocery Store, a retail and wholesale grocery company: The incorrect price was used on sales invoices for billing shipments to customers because the wrong price was entered into the computer master file of prices. A vendor invoice was paid even though no merchandise was ever received. The accounts payable software application does not require the input of a valid receiving report number before payment can be made. Employees in the receiving department took sides of beef for their personal use. When a shipment ofefficiency meat was received, the receiving department filled out a receiving report and forwarded it to the accounting department for the amount of goods actually received. At that time, two sides of beef were put in an employee’s pickup truck rather than in the storage freezer. During the physical count of inventory of the retail grocery, one counter wrote down the…

Assume that you work for Greeble’s Sporting Goods, and your manager requests that you outline the pros and cons of discontinuing its Golf department. That department appears to be generating losses, and your manager believes that discontinuing it will increase overall store profits. Prepare a memorandum to your manager outlining what management should consider when trying to decide whether to discontinue its Golf department.