Ajax Manufacturing installed a new bar code based inventory tracking system in its warehouse. To close the

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Ajax Manufacturing installed a new bar code based inventory tracking system in its warehouse. To close the books each month on a timely basis, the six people who work in the warehouse must scan each item in a 36-hour period while still performing their normal duties. During certain months, when inventory expands to meet seasonal demands, the scan takes as many as 30 hours to complete. In addition, the scanners do not accurately record some inventory items that require low operating temperatures. A recent audit brought to management’s attention that the inventory records are not always accurate. Which aspect(s) of feasibility did Ajax fail to consider prior to installing the inventory tracking system.

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Accounting Information Systems

ISBN: 978-0133428537

13th edition

Authors: Marshall B. Romney, Paul J. Steinbart

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