Chapter 11

Question 1

Purchasing will liaise with accounting department on:

Answer 1

Establishing credit terms with supplier

Prices

Payment dates and terms

Order details

Inventory levels

Budgeting

Question 2

Production will liaise with accounting department on:

Answer 2

Monetary values on costs absorbed for management accounts

Costs and quality of materials

Inventory levels

Budgeting

Question 3

Marketing will liaise with accounting department on:

Answer 3

Advertising budget and spend

Prices charged for products

Sales information shared to understand market share

Budgeting

Question 4

Services will liaise with accounting department on:

Answer 4

Charge out rates

Estimating costs of overheads relating to the service provision

Question 5

Four main service categories

Answer 5

Intangibility

Inseparability

Perishability

Variability