The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle). Requirement 2 – B Hudson’s wholesale inventories should be reported on the balance sheet at the replacement cost amount. The text indicates that the replacement cost is less than the NRV (or ceiling) and more than the NRV-NP (or floor) making the
Bowlby’s four phases give a rough outline of the phases of attachment, and their coinciding behaviors. However, in order to have an understanding of the phases of attachment, and an understanding of how attachments develop and why attachments are formed, the roles of the caregiver and infant and the implications for later development must also be
At this point, sales are virtually diminished, pricing is considerably offset from market trends, and the ability to maintain a level of profitability becomes a major challenge. An organization can put forth efforts in the attempt to reverse, or otherwise avoid, the decline stage by a few idealogic strategies, all of which are designed to readapt and conform to newly enhanced demands by the industry and its respective consumers. Most importantly, an organization can empower itself to readapt and act in a proactive manner by analyzing market trends and determining the future scope of a certain type of product or service within a reasnable timeframe prior to the onset of saturation and declination. Perhaps it would be in the best interest of an organization to produce/ provide a product of similar fashion, yet a unique alternative, before actually retiring or discontuing a product. For production to end indefinitely of a specific good, an alternative must be researched, produced, and introduced into the marketplace at the same time to create an equilibrium of market introduction of one product and declination of another.
* Product lines that were not covering their avoidable costs could be dropped. * New product development is likely to receive more focus as the review program identifies areas of increasing demand. * Gourmet is likely to benefit from better monitoring of competitors’ product development, prices, and market share trends. F. This is an open-ended question; the specific steps are likely to vary based on the circumstances and the information found. Analysis for a given product might include the following general steps: * Identify the product to be analyzed by using a quantitative monitoring technique (e.g., size decline in contribution margin or sales) or some other method * Obtain and analyze detailed revenue and cost data prior periods; look for negative trends * Obtain and analyze the correlation of sales for this product with other products; look for potential relationships with other products that might influence a decision to drop the product * Obtain and analyze industry information about the product; look for information about trends in customer tastes, competition,
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.
Henkel uses special promotions, instead of straight price promotions, such as more product for the same price, specially bundled products, and coupons or free items attached to the package. These promotions are retailer-specific, therefore there is a need for a wide variations of different kind of packaging. 4. What are the implications of these different approaches on raw material costs, inventory related costs, profit margins, etc. As for an offering new products and promotion, Henkel have to stock a lot of material, the reason is to produce high amount of product to serve retailer while running a promotion.
This paper will look at those experts who do believe in birth order and the affects they believe arise from birth order. Alfred Adler is considered to be the pioneer in the birth order theory (Roberts, 2011, par. 5). Adler thought that the best way to understand a person’s behavior and personality was to know their birth order and status in their family. Adler believed that there were positive and negative repercussions, depending on how a person responded to their position in the family (Roberts, 2011, par.
Assume you are the one who had to make the final decision on whether or not to promote and market Nestlé’s baby formula in Third World countries. Read the section titled “Ethical and Socially Responsible Decisions” in Chapter 5 as a guide to examine the social responsibility and ethical issues regarding the marketing approach and the promotion used. Were the decisions socially responsible? Were they ethical? The decisions based upon whether or not to promote and market Nestle’s baby formula in Third World countries were socially responsible.
Even though the Brita products are a bit more expensive, people are willing to pay at that price for greater tasted water. Since Clorox is so successful, they have a significantly large marketing and R&D budget and that is where Clorox’s advantage is against their competitors. Clorox can further use this advantage. For example, Clorox can increase their advertisement either on TV or radio to attract new customers and to gain brand recognition. Clorox can also put more efforts on designing new
The first one is that individuality means more than claiming independence, it means achieving it by acknowledging the influences that have shaped my thinking, by sorting and evaluating my ideas and attitudes, and finally by choosing the best ideas by resisting the pressure of habit and by changing the ways that I think because the evidence tells me to do so. The second subject that was significant to me was how to distinguish a problem from an issue and how to solve them. Solving a problem means deciding what action will change the situation and make it better, whereas solving an issue means deciding what belief or viewpoint is the most reasonable. The third subject was discussed in chapter 8 and taught us how to investigate a problem or issue. According to Ruggiero (2012), “It means getting information others overlook by searching in ways and places that never occur to the uncreative.” (p.138).