Posts Tagged: Gross Margin

Exploiting Inflation to Pad Bottom Lines

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to The Washington Post, some companies are exploiting inflation to pad their bottom lines. Questions: What evidence indicates that companies are raising prices to exploit rather than in relation to underlying cost increases? If companies are passing on their own higher costs to consumers, their _______________ should stay roughly the same. How do analysts… Read more »

Another Walmart PR disaster

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Walmart’s disabled greeters are being replaced by “customer hosts,” with growing responsibilities. Questions: 1. Why has this been such a PR disaster for the company? 2. How many days were the greeters given to find new jobs? 3. What is the new job of “customer hosts” meant to do? 4. What are your thoughts about… Read more »

RIP – Coca-Cola Quietly Snuffs out Diet Coke Variations

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

If you were a fan of Diet Coke’s variations of lime, lemon, mango, orange, and cherry, they have been quietly phased out of stores and online. Questions: 1. When were the products launched? (click on the hyperlink in the article which says: “massive overhaul of Diet Coke”) 2. The move was made to attract millenials…. Read more »

Which Card Should I Choose?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

The first credit card offering frequent-flier miles made its debut over 30 years ago. Delta Airlines generated $3 billion from its relationship with American Express in 2017 and expects to hit $4 billion by 2021. Questions: 1. What did the frequent flier airline cards offer in the 1980s? How does that compare to now? 2…. Read more »

A Mysterious Amount of Net worth!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

In 2012, Forbes dropped J.K. Rowling after eight years on its authoritative billionaires list, saying high British taxes and large charitable contributions had eroded her fortune. Questions: 1. Why should Forbes rethink that? 2. If Rowling gets equivalent of Universal Studios Park ticket sales equal to Spielberg, how much of that would a $100 ticket… Read more »

Credit Card Chips

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Did you ever wonder why so many retailers have chip-readable machines for credit cards, but tell you to swipe your card anyway? This article explains this frustrating issue for retailers. Questions: 1. Merchants have spent incredible amounts of money to get new chip-reading machines, so what is the reason for not using them? 2. Since… Read more »

A New Concept

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Because of a scramble to locate baby food at night, Robert Ilijason decided to open Sweden’s first unstaffed convenience store. The 39-year old IT specialist now owns a 24-hour convenience store that has no cashier. Questions: 1. How do the customers pay for their purchases? 2. How is the store monitored? What types of controls… Read more »

Shkreli Smurks at Congress and Later Calls Them “Imbeciles”

Posted by & filed under Accounting Information Systems, Accounting Principles, Auditing, Cost Accounting, Ethical Dilemma, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Martin Shkreli, the former chief executive of Turing Pharmaceuticals, repeatedly exercised his Fifth Amendment right to avoid self-incrimination, infuriating members of the House Committee on Oversight and Government Reform. Mr. Shkreli is facing federal securities fraud charges. Questions: 1. What is the scandal that Mr. Shkreli’s company is apart of? 2. What is the connection… Read more »

Release Cards: Another High Interest Problem?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

As this article points out, unlike consumer debit cards, prison-issued cards are unregulated and subject to exorbitant fees. Questions: 1. What are the typical charges for these cards? 2. For the person that had $120 and was able to use only $70, calculate the percentage of fees. 3. Who is making the money on these… Read more »

Amazon goes “brick and mortar”

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

In an unusual move, Amazon opened a storefront bookstore in Seattle’s University Village mall. Questions: 1. What are the characteristics of the books sold in the “brick and mortar store”? 2. In addition to books, what other products does the store carry? 3. What do you see as the costs and benefits of this new… Read more »