132) What is a supply chain, and what are the benefits of a supply chain analysis? Provide an example of these


133) Explain why backflush costing does not strictly adhere to generally accepted accounting principles and describe

the types of businesses that might use backflush costing.

134) The CEO of Robotics Limited is concerned because the cost of materials has not been in line with the budget for

several periods, even after implementing an EOQ model. The company has the normal direct material variance

computations of price and efficiency at the end of each month. The price variance of the direct materials used is

usually near expectations. The CEO does not understand how the budget differences are always larger than the

material price variances.


What explanation can you give for the evaluation problems presented?



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