150.The inventory manager's compensation includes a bonus plan based on gross profit. You discover that the inventory manager has knowingly overstated ending inventory by $2 million. What effect does this error have on the financial statements of the company and specifically gross profit? Why would the manager knowingly overstate ending inventory? Would this be considered an ethics violation?

151.Fast Auto Parts is an auto parts wholesaler that stocks several major brand names for Complete Auto Parts stores across the country. Complete Auto Parts does not assume responsibility for parts until they are sold to the customer. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory?

152.Advances in technology have greatly reduced the cost of a perpetual inventory system. What advantages does a perpetual inventory system have over periodic?

153.For Randy Hetrick of Fitness Anywhere, the major challenge was maintaining appropriate levels of inventories while controlling costs. What is meant by this statement?