Question: Question 2 : Inventory Management Alamac aims to maintain optimal inventory levels to meet demand without incurring excessive costs. Calculate the inventory turnover rate and

Question 2: Inventory Management Alamac aims to maintain optimal inventory levels to meet demand without incurring excessive costs. Calculate the inventory turnover rate and days of supply using the following data: calculate Inventory Turnover Rater and Days of Supply using the following: Cost of Goods Sold (COGS) with $3,350,000 for the year and the total average inventory value is $780,000.
Question 3: Break-Even Analysis
Using the budget prepared in Question 2, calculate the break-even point in units for the next year. Discuss what the break-even point signifies for Alamac Building Supply\'s financial planning. Calculate the month of the year when Break Even occurs.
Outcome Expected: Calculation of the break-even point, with an explanation of its importance in evaluating financial viability and planning.
Question 4: Variance Analysis Alamac Building Supply had budgeted for a profit margin of 25% on each unit sold, but at the end of the year, the actual profit margin was only 22%. Perform a variance analysis to identify the factors contributing to this discrepancy.
Outcome Expected: Conduct a variance analysis to explore the reasons behind the difference in expected and actual profit margins, applying concepts of variance analysis.
Question 5: Performance Measurement Considering the findings from the variance analysis in Question 4, suggest key performance indicators (KPIs) that Alamac Building Supply should monitor in the next financial year to improve profitability and efficiency.
Outcome Expected: Identification and justification of relevant KPIs for Alamac, demonstrating an understanding of performance measurement in managerial accounting.

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Question 2 Inventory Management To calculate the inventory turnover rate and days of supply we need the following information Cost of Goods Sold COGS for the year 3350000 Total average inventory value ... View full answer

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