Cheap Rent in San Francisco

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

According to the Washington Post, Peter Berkowitz and his roommates came up with an innovative way to find affordable housing in San Francisco.

Questions:
1. Why is the cost of living so high in San Francisco?
2. What are some of the other housing alternatives mentioned in the article?
3. How does the median rent for a one-room apartment in San Francisco compare to where you live? Discuss the percentage difference.
4. Explain the inspiration for the design of Berkowitz’s pod and research the trend in small houses. Discuss the advantages and disadvantages of these trends.
5. Do you think that San Francisco has housing codes to prevent this? Explain.

Source:
Wang, Y. (2016). Man moves to San Francisco, pays $400 a month to sleep in wooden box in friends’ living room. The Washington Post, March 29 (Retrievable online at
https://www.washingtonpost.com/news/morning-mix/wp/2016/03/29/man-moves-to-san-francisco-pays-400-a-month-to-sleep-in-wooden-box-inside-friends-living-room/?hpid=hp_no-name_morning-mix-story-c-duplicate-duplicate%3Ahomepage%2Fstory)

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 Oct. 1, 2015, who is responsible for the costs of credit card fraud?
3. What is the “finger-pointing” issue on who is responsible for the delay in using the new equipment? Discuss.
4. What are chargebacks? For Mr. Avi Kaner, co-owner of Morton Williams supermarkets in New York, what have these chargebacks meant?

Source:
Abrahams, R. (2016). Chip-Card Payment System Delays Frustrate Retailers. The New York Times, March 22 (Retrievable online at http://www.nytimes.com/2016/03/23/business/chip-card-payment-system-delays-frustrate-retailers.html)

chip

Sick Leave? How does it hurt business?

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

Many people go to work even when they are sick. But should this happen in the restaurant industry? As Chipotle found out outbreaks of norovirus, E. coli and salmonella can devastate business. This article discusses the lack of sick leave in the restaurant business and how food workers are the source of about 70% of norovirus outbreaks from contaminated food.

Questions:
1. By how much, did Chipotle’s outbreaks drag down sales in the last 3 months of 2015 and comparable sales in January 2016?
2. In the Restaurant Opportunities Center survey, approximately how many restaurant workers admitted to cooking, preparing, and serving food while sick?
3. According to the CDC, what does the spread of norovirus cost the U.S. each year in healthcare and lost productivity from foodborne illness?
4. Where you surprised at the amount of paid sick leave for workers across the board, as reported in the article? Why or why not?
5. Discuss the legislative efforts both for and against paid sick leave. Perform a cost/benefit analysis, given information from the article.

Source: Wong, J. and C. Lewis. (2016). No Sick Leave At Restaurants Means More Sick Customers. Buzzfeed.com, Feb. 16 (Retrievable online at http://www.buzzfeed.com/venessawong/no-sick-leave-at-restaurants-means-more-sick-customers#.wsdKMdnyd)

enhanced-mid-30361-1455128231-3

The Bottom Line

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

More than 250,000 of Corinthian Colleges’ victims will be able to get out from under massive and fraudulent student loan debts, Education Secretary John King will announce Friday in Boston.

Questions:
1. What is the big asterisk that the article refers to?
2. How many schools and how many states are involved in this scam?
3. What amount in loan discharges have already been issued?
4. According to the article, how much money did Corinthian scam in loans over the 5-year period of its existence?
5. Do you think that the Department of Education is doing enough to reach all of the victims of this fraud? Discuss.

Source:
Pyke, A. (2016). Feds Will Forgive Debts For 250,000 Corinthian College Victims – But There’s A Big Asterisk. Think Progress, March 25 (Retrievable online at http://thinkprogress.org/education/2016/03/25/3763368/massive-expansion-corinthian-student-debt-relief/)

Is a new retirement savings plan part of your future?

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

If you make a list of the most hated words or phrases in politics today, “employer mandate” has to be in the top 10. However, in this era of retirement security crisis, mandatory retirement savings program is gaining more support in Washington.

Questions:
1. Who are pushing the idea politically?
2. Why will the Congress will have to address Social Security sometime soon?
3. To you, which recommendations mentioned in the article make the most sense and why?

Source: Miller, M. (2016). Is a Mandatory Retirement Savings Plan in Your Future? Reuters.com, March 17 (Retrievable online at http://time.com/money/4262916/mandatory-retirement-savings/?xid=homepage)

A deeply ill-conceived way to address student debt?

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

Members of Congress have introduced bipartisan bills that would give a tax break to the growing number of companies that offer to help pay off their employees’ student loans.

Questions:
1. What are the reasons that the article presents for this idea as being a deeply ill-conceived way to address student debt? Do you agree or disagree?
2. Who would actually be the beneficiaries of this bill?
3. Who are the sponsors of the bill?
4. Who do you think are the losers if this bill is passed?

Source: Weissmann, J. (2016). This Bill Would Give Companies a Tax Break for Paying Off Their Employees’ Student Loans. It’s a Terrible Idea. Slate.com, March 18
(Retrievable online at http://www.slate.com/blogs/moneybox/2016/03/18/this_bill_would_give_companies_a_tax_break_for_paying_off_employees_student.html)
cdn-media_nationaljournal_com

A crummy $56?????

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

Drivers who worked for the “taxi” service known as Lyft, (in California) during the past four years, would have been entitled to an estimated $126 million in expense reimbursements had they been employees rather than independent contractors.

Questions:
1. How much would Lyft drivers have recouped under a standard rate for mileage reimbursement set by the U.S. government?
2. Based on the information in the article, do you think it was reasonable to count the drivers as independent contractors? Why or why not?
3. What was the settlement and what percent of the potential value of the claim was it?

Source:
Levin, S. and Heather Somerville. (2016). Exclusive: Lyft drivers, if employees, owed millions more – court documents. Reuters.com, March 20 (Retrievable online at http://www.reuters.com/article/us-lyft-drivers-pay-exclusive-idUSKCN0WM0NO)

Proxy fight

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 are currently used or planned? Can you suggest others?
3. Would this work in the U.S.? Look up the concept of the Avenue C. How is this similar or different to Mr. Ilijason’s store? What are their control processes?
4. What are the fixed and variable costs for this type of store?

Source:
Olsen, J. (2016) In Sweden’s 1st unstaffed food shop, all you need is a phone. AP news, Feb. 29 (Retrievable online at http://bigstory.ap.org/article/bf2639e442a444768caafa2a7fb78984/swedens-1st-unmanned-food-store-all-you-need-phone)

Investigating Integrity

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

A U.S. watchdog agency is preparing to investigate the Federal Reserve and other regulators in order to determine whether they are too lenient on the banks they are meant to police.

Questions:
1. What is the strategy to be used in this investigation?
2. Explain the “revolving door” concept that the article mentions.
3. What is the relationship between the Fed, Congress, and the GAO?
4. Which lawmakers are involved in this proposed action?

Source:
Spicer, J. (2016).Exclusive: U.S. watchdog to probe Fed’s lax oversight of Wall Street. Reuters, Mar. 4 (Retrievable online at http://www.reuters.com/article/us-usa-fed-probe-exclusive-idUSKCN0W62C0)

money_ball

Meaningless? Exagerating Customer Savings?

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

Just as traditional retailers are faltering, so are list prices. This article exposes some of the secrets regarding list prices and online sellers.

Questions:
1. Discuss the question in the article and what it means for you personally? “If everyone is getting a deal, is anyone really getting a deal?”
2. Explain the case against Overstock.com. How should the company account for the $6.8 million? Present the journal entry and/or note to the financial statements.
3. What is the Federal Trade Commission’s (FTC’s) role with respect to list prices?
4. What happened to the Amazon lawsuit and list prices?
5. Why are list prices so important for online merchants?

Source:
Streitfeld, D. (2016) It’s Discounted, but Is It a Deal? How List Prices Lost Their Meaning. The New York Times, Mar. 6 (Retrievable online at http://www.nytimes.com/2016/03/06/technology/its-discounted-but-is-it-a-deal-how-list-prices-lost-their-meaning.html)
overstock