Jules Company sells a variety of beauty products online. Their products fall into three broad categories: nail care, makeup, and hair care. The company has over 250 different products in its database. The costs to acquire the inventory are all easily tracked, as the costs generally include the product amount plus shipping. However, selling costs are a little more complicated, as the cost to sell varies by category as well as by product. Shipping costs to customers also vary depending on where the product is being shipped and the weight. Jules’s products are generally sold quickly. The company will often mark items that do not sell down on clearance.

Jules Company is currently looking at upgrading their accounting information system, and want insights on how they might use a new system to better assist with tracking their costs.

Required:

Identify ways that a company might use data analytics to better manage their inventory. In your response, discuss any relevant accounting policy issues that need to be considered.