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Disposals? Inventory System Requirements
(Program planning and monitoring function) 87. Does the system establish price computation models or
formulas to be used in the Bill Calculation activity? Pricing
models for entities are usually based on costs incurred, but
may be based on other factors, such as specific norms and
regulations for the agency, utility, and condition. 88. Does the system provide methods to support pricing by
groupings or commodities of items? IT Audit Manual Volume III 68 IT Audit Manual
Does the system identify separate methods of pricing needed
based on statutory authority or other agency policy? For
example, the pricing method used may depend on the nature
of the customer/consuming agency, such as within the same
agency, another Government agency, corporation etc. 90. Does the system establish methods or formulas to be used in
valuing and accounting for inventory based on cost? Costs to
be considered for inventory held for sale include appropriate
purchase, transportation, and production costs incurred to
bring the items to their current condition and location. 91. Does the system establish appropriate cost methods that
apply to the various types of inventories held by an agency?
Different methods might also be needed for inventory held
for sale/issue based on the type of items, such a medical
supplies, perishable goods, and hazardous materials. 92. Does the system establish methods to maintain the net
realizable value of inventory items? 93. Does the system establish methods or formulas to be used in
valuing and accounting for inventory in the process of
production based on cost? Costs to be considered for
inventory in repair or in the process of production (work in
process) include materials, labour, and overhead used to
convert the items to a finished product. 94. Does the system establish appropriate cost methods that
apply to the various types of inventories involved in the
production process? Different methods might be needed to
assign costs to raw materials, work in process, and finished
goods in a manufacturing entity. 95. Does the system establ...
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This note was uploaded on 10/27/2013 for the course LAW 10-100 taught by Professor Parsons during the One '10 term at Bond College.
- One '10