Military Contracting Failures: A $1.5 Trillion Mistake

Posted by & filed under Accounting Information Systems, Accounting Principles, Auditing, Cost Accounting, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting, Video Updates.

The F-35 is being produced by 1,200 suppliers. Seen as the fighter jet of the future, it has trouble flying at night, its engines have exploded during takeoff, and early models suffered structural cracks. Questions: 1. Why is the military still pursuing the production of this pink elephant? Why doesn’t technology become less costly for… Read more »

Marriott to pay $600,000 to Resolve WI-FI-Blocking Investigation

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In March 2013, the Federal Communications Commission (FCC) received a complaint that the Marriott convention center at the Gaylord Opryland location in Nashville, Tennessee was in violation of Section 333 of the Communications Act. After an FCC investigation substantiated unlawful use of containment features, Marriott agreed to pay $600,000. Questions: 1. What did the FCC’s… Read more »

Don’t Pay that Medical Bill: The Truth about Balance Billing

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As health-care costs continue to soar, millions of confused consumers are paying medical bills they don’t actually owe. Typically this occurs when an insurance plan covers less than what a doctor, hospital, or lab service wants to be paid. The health-care provider demands the balance from the patient. Questions: 1. Explain why balance billing is… Read more »

Capitalism is Broken?

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Camp Bow Wow, a dog-sitting chain, makes its workers sign non-compete agreements that bar them from plying any of the “trade secrets” they learn walking dogs at any other animal day care centers for up to two years. Questions: 1. Do you think that these quasi-feudal non-compete contracts should be illegal for everyone other than… Read more »

Let’s Have Pizza!

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According to the New York Times, the uptick in pizza sales in Brooklyn at Domino’s Pizza is due to stolen credit card numbers being used to order to see which cards were still active and could be used for bigger purchases. Questions: 1. Explain why the article called this a blend of high-tech fraud and… Read more »

That’s the Walmart Way!

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An Oklahoma City Walmart is asking employees to donate food to help their coworkers make ends meet during the holiday season. The company drew criticism for similar employee food drives a year ago. Besides incurring a total public assistance cost of $6.2 billion per year, Walmart has been criticized for running a corporate charity called… Read more »

New Class Action Lawsuit

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Zillow, the number one online real estate website, is facing a $5 million class action lawsuit for intimidating employees to skip meals and work long hours without pay. Questions: 1. Who was Zillow’s top competition and how much did Zillow pay to buy the company? 2. Would this acquisition be reported on the Statement of… Read more »

It’s Not Over Yet!

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Looking at GDP reporting GDP on a quarter-on-quarter basis, it turns out that Greece’s six-year recession is over, but recovery is far from near. The country’s economy grew at a 3.2 percent annual pace in the first quarter, 1.2 percent in the second, and 2.8 percent in the most recent one. However, unemployment is 25.9%…. Read more »

Congressional Insider Trading?

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Nineteen months ago, with only 20 minutes remaining in the trading day, a Washington-based broker-dealer, Height Securities, blasted out a “flash report” to nearly 200 clients, including hedge funds on Wall Street that predicted a raise in Medicare reimbursement rates. This sent many health insurance companies’ stocks soaring. Regulators are now trying to investigate insider… Read more »

Medical Malpractice Reform: Will it save money?

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According to the New York Times, many people believe that medical malpractice reform is the key to removing waste from the health care system and making the practice of medicine better. But a growing body of evidence shows that belief is most likely mistaken. Questions: 1. What is the rationale for malpractice reform as cost… Read more »