Competitors likely would not want to risk losing current sales by adding features which would raise their prices. Threat from Buyers – Because Company G is able to sell the Little Wonder at the current market price , if not lower, the threat from buyers is
* Without such access to R&D research, the agreement essentially has no value to Careway on a stand-alone basis. Milestone Payment Revenue Recognition * In accordance with codification 605-28-20, a milestone is achieved if the event would result in additional payments being due to the vendor. * Therefore, the milestone payments cannot be recognized as revenue until the date of the first launch, when revenue is earned and more payment comes due to SolvGen from Careway. * Since R&D does not represent a deliverable, the milestone payments are essentially an up-front payment for the license and distribution deliverable. * Milestone payment revenue should then be spread out on a pro rata basis as products are distributed under the license and distribution agreement.
E&Y reasoned this as it creates an exception to the general rule of reserving for expected future product returns at the gross sales price and deferring the recognition of an equal amount of revenue. This justification is invalid. The company’s customers are not “ultimate customers,” but are wholesalers that sold their product to retailers. In addition, Medicis’s returns were not returns of products in exchange for products of “the same kind, quality, and price,” but of unsalable product for
Since the Walton Work Wear line is in the production stage, its accumulated development costs should be capitalized. The Carroway Cool Top has not started it commercial production which would allow the development costs not to be amortized yet. Also interest costs on loans to generate financing for the R&D activates of a product can be capitalized rather than expensed. The capitalization of interest would allow CCL to reduce taxable income in the future when it is more profitable. I would recommend that CCL make the above changes immediately so that the financail statements are not incorrect.
While candidates are otherwise qualified they don’t possess the skills to maintain good customer service and problem solving skills necessary to effectively work in retail. Using the ranking method, finalist are ordered from the most desirable to the least desirable based on results of discretional assessments, hiring managers have a higher probability of choosing the most qualified candidate. (Heneman & Judge p. 554) Managerial focus groups should focus on eliminating the time laps between the application and the offer of employment as these is eliminating qualified
How can a flexible budget be used as a control? (Points : 15) The primary use of a flexible budget is to measure performance by comparing actual costs for a given output with the budgeted costs for the same level of output. A flexible budget is the opposite of a static budget. Flexible budget allows for variability in business and allows for unexpected changes. It distinguishes between fixed and variable costs in this way the budget can be adjusted automatically to a particular activity.
Decision Making Accounting (ACC) 561 November 11, 2010 Eddie Mattison, Facilitator Decision Making Budgets and Performance Reports “Budgets…help to coordinate and implement plans. They are the chief devices for disciplining management planning. Without budgets, planning may not get the front and center focus that it usually deserves.” (Horngren at el. 2008, p. 13) Guillermo must be able to operate within his budgets; otherwise he may begin to operate at a profit loss. Creating a budget will allow Guillermo to know the exact amount of money that he has to allocate to specific expenses.
Additionally, if the quantity or quality of the assets productivity is increased capitalize cost of improvements or replacement to the asset account. It is also important to consider whether the item being repaired is already capitalized and being depreciated and whether it is being separately tracked or considered part of a larger asset. If the item is capitalized and being separately tracked, dispose of this asset on the books and capitalize the repair and maintenance addition. This avoids having the same asset on the books twice with both being depreciated. Moreover, Small Fries Inc. should not report the repairs and maintenance in their balance sheet as aggregate cost but instead designated the expense to each facility as each expense is incurred.
Another argument Levitt and Dubner explored are the “Experts”; from criminologists to real estate agents use their info advantage to serve their own agenda”. People might think they are buying the expertise and the experts’ best interest because they are giving them an economic incentive, but what most people don’t realize is that experts manage themselves as business. They try to get the job done fast so they can move on to the next customer, but if it is their own property they might put an extra effort because they can predict when the market is going to be good and they don’t have to rush so they can wait for the best offer. This wasn’t actually a big shock for me but is just another sample of how the real world
Though EPAs have their advantages, the community needs more education about the responsibilities that entail being selected so that the risk factors for misuse of this power be reduced. Moreover, the economy, as it is now, does not help to lessen the potential for abuse. In some instances, depending upon the gravity of the economic situation of the selected administrator, he or she may go as far as selling the older person’s assets and properties including the primary