By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. 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).
There should also be a monitoring policy, which will record the effects of closing down the four stations. This will be useful later if it is debated to close all nine Border Patrol stations. Lastly, an ex-post policy evaluation will need to be done. This will evaluate if the objectives were obtained (Patton, Sawicki & Clark, 2013, p. 346). This will require a goal-based approach that will shed light on success level of the plan to close the boarders (Patton, Sawicki & Clark, 2013, p. 349).
Armstrong’s failures to meet their obligation gives GCI three options: they may reject the entire shipment of goods, accept the shipment of goods as is, or accept any number of commercial units and reject the rest of the goods, (Melvin 2011, pg. 192). One right that is available to Armstrong is referred to as the cure. The cure is the UCC’s way of promoting the completion of an original contract. It would allow Armstrong (the seller) the right or opportunity to repair or replace any goods that the buyer (GCI) has rejected as long as the time period for performance has not
The inventory decrease represents a future value of $13,416.27. To evaluate this result is subtracting the present value to the future value. In the Figure 4, can see the calculus for the results. Figure 4 Calculating Present Value and Future Value [pic] In the type of industry you belong to La Boutique "C", a result of decrease in inventory as projecting the forecast does not necessarily mean lost. This decrease should be tied to a plan and sales strategies and goals established in the organization.
Week 4 Individual Assignment for Scott Equipment Organization Paper Ray Barsamian FIN 419 John Jabbour October 19, 2011 This paper will show how the Scott Equipment Organization will profit from different aspects of risk trade off and how the company’s debt and assets will be affected by this. It will also include my recommendation on various degrees of profitability with regards to this risk. A proper investment strategy will also be shown with regards to the data involved. By evaluating which investments the company will have to adapt to the determination will be made on which one will best the company’s financial needs. These could range from aggressive investment strategies to
Second, an inventory of the companies fixed cost needs to be developed to inventory these costs and make a determination as to which of these costs could be lowered or eliminated. • Consider lowering employee wages, reducing the number of employees, or removing and hiring new employees at a lower wage. • Evaluate production costs to determine if these can be lowered by substitution of products, lower the number of units produced per day, or explore modifying the product. Assess the circumstances in which the company should discontinue operations and how management should react when confronted with these circumstances. Provide a rationale with your responses.
To: CEO From: HR Re: Memorandum Regarding Constructive Discharge Question presented: How the company should respond to claim regarding constructive discharge in new policy. 1. Whether the doctrine of constructive discharge is relevant Constructive discharge is “a termination of employment by making working conditions so intolerable that an employee feels compelled to leave.” Garner, Bryan A. Blacks Law Dictionary (West Group 2009). Although courts may differ throughout the states, there are generally two main elements to any constructive discharge case: 1) an employer makes a change in working conditions and 2) the change is so intolerable that any reasonable employee would leave.
2 Syllabus: MNGT 295 – Human Resource Management – Dr. Paul L. Gerhardt, Ph.D. 3 11. Identify determinants in union-management relations, and describe a method of reducing labor relations problems. 12. Analyze an actual performance appraisal system and make recommendations for
An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity’s financial statements. 6. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles.
What theory of profit best reflects the performance of the plasma screen makers? 2 To reduce Agency Problems, executive compensation should be designed to: Correct Answer: create incentives so that managers act like owners of the firm. 3 Economic profit is defined as the difference between revenue