Posts Categorized: Managerial Accounting

Weird Thought Experiment

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

As Powerball mania and the promise of $1.6 Billion swept the airways, Andy Kiersz came up with his own idea on how to win. Unfortunately, it would require 189,000 people filling out all the possible Powerball combinations on those annoying scantrons, working 10 hours a day at a rate of 50 tickets per hour. Questions:… Read more »

The Age of the Employee-less Company

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

During most of the 20th century, companies bringing in the most money also employed the most people. This article looks at a new paper from the Brookings Institute about the new age of ghost companies. Questions: 1. The article mentions Walnart as one of the five largest companies in 2012 that had 100,000 people employed… Read more »

Be sure to remember your server!

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

According to the Washington Post, after a change in tax rules last year, the auto-gratuity added to the bill of large parties at restaurants is on its way out. Questions: 1. What is the new rule that the Internal Revenue Service imposed on restaurants that led to this change? 2. How does this change lead… Read more »

Want to open a franchise?

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

Because Papa John’s is trying to recruit franchisees for new restaurant growth, it is offering enormous discounts to potential U.S. operators. Based on the information in the article, Papa John’s says the incentive package is worth roughly $60,000. Questions: 1. What are the fees that Papa John’s is temporarily waiving? 2. Using the minimum investment… Read more »

Arbitration Lurks in the Fine Print

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

In this article, the New York Times found that arbitration rules tend to favor businesses, and judges and juries have been replaced by arbitrators who commonly consider the companies to be their clients. According to the authors, this has created an alternative justice system with conflicts of interest. Questions: 1. What types of claims are… Read more »

Paranoia or Internal Control?

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

Red Star Operating System is North Korea’s homegrown computer operating system that mirrors its political one. The latest version (circa 2013) is based on a version of Linux called Fedora and has the feel of Apple’s OSX. Questions: 1. What are the two major challenges the article said that Pyongyang faces? From an international business… Read more »

Whistleblower in an Unusual Case

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

According to Newsweek, David Danon, a former Vanguard tax lawyer, became a whistleblower two years ago when he filed formal complaints with the Internal Revenue Service and many state taxing agencies claiming that Vanguard’s low fees are an illegal tax dodge. Questions: 1. According to a 2006 law, how much could Danon stand to collect… Read more »

Sam’s Club CEO, Rosalind Brewer, Talks about Changes and Lessons Learned

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

The rivalry between Sam’s Club and Costco comes close to what you find in college sports. Questions: Source: 1. What things did the Sam’s Club CEO say were learned about Black Friday? 2. What happened to CostCo stock versus Sam’s Club Stock in 2015? 3. What are the differentiation strategies that Sam’s Club is implementing?… Read more »

The Great Experiment

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

Finland has become the latest country to propose a basic income for all. Under the plan, all Finnish citizens would receive an 800 euro stipend, per month, tax-free. Questions: 1. Based on the current exchange rate, what amount of U.S. dollars is this equal to? 2. What incentive does Finland have to implement this proposal?… Read more »

Will the Fed or won’t the Fed?

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

Ms. Janet Yellen indicated in testimony before Congress on November 4, that an interest rate increase could come in December 2015. But she added that no decision had been made. Questions: 1. When was the last time that the Fed raised interest rates? 2. Where has the benchmark interest rate been since Dec. 16, 2008?… Read more »