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Business, 21.09.2021 14:00 zalyndevola

The manager of a fabric store has noticed a considerable increase in the amount of defective fabric being scrapped by his store. Clerks notice the defects such as irregularities in the weave or colour of fabric when they cut into 5-metre pieces the rolls of fabric. These defects usually affect only a small portion of the fabric on a roll. Therefore, when a clerk discovers a defect, the "bad spot" is cut from the piece. The clerk fills out a defect slip, which includes the amount of defective fabric in metres, the retail price per metre, and the inventory control number. The defect slip is attached to the fabric and put in a "defects" bin in the storeroom. Once a month, the assistant manager sends the defect slips to the accounting department and packages the bad fabric for sale as scrap material. The accounting department uses the defect slips to write off the defective inventory in the accounting records. Explain in details, what information you would request from the management accounting department that might help in reducing the problem of increasing defects.

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