Lots of people are curious about the price of liposuction (which is also referred to as lipoplasty and suction lipectomy). Although the procedure sports a somewhat hefty price tag, it is among the cheaper cosmetic surgeries available. Some the of the cheapest areas for liposuction are the arms, buttocks, female back, hips and outer thighs. These areas could cost around $1,500 to $5,000 to treat.
For the following questions, pick an area of the body discussed in the article and answer questions 1-3.
1.Â What factors can affect the overall cost? What qualitative issues are important before you chose the lowest costs in lipoplasty?
2.Â What costs do you think are fixed costs relating to these procedures?
3.Â What costs do you think are variable costs relating to these procedures?Â What costs are mixed?
In one of the most recently uncoveredÂ Ponzi cases, a former hedge-fund manager has pleaded guilty to criminal charges in an investment scam in which he bilked as much as $900-million from investors, including four university endowments. According to investigators, the Paul R. Greenwood and his partner Stephen Walsh spent at least $160-million on mansions, horses, rare books, and an $80,000 collectible teddy bear. Mr. Walsh has pleaded not guilty, and Mr. Greenwood will testify against him at trial.
1. What did the investors find out about their assets?Â Explain why this was a bad sign.
2.Â What do the articles say could have prevented the university investments in this scheme?
3.Â What potential penalties does Mr. Greenwood face?
If accounting has the Big 4, then social media has the Big 3: LinkedIn, Facebook and Twitter. Still, many accounting firms and businesses consider LinkedIn as their sole source of social media because the site helps form relationships that often result in more business and turn into referral sources. But what are the benefits and drawbacks to using the other two main social media sources.Â As this article and video show, taking time to investigate and manage social media outlets may help a firmâ€™s marketing and ultimately its bottom line.Â
1.What were the 5 tips in the video for using social media to boost your firmâ€™s income or presence?
2.Based on the video and article, what would you say are the biggest benefit(s) for accounting firms that use social media to promote their practices?
3.Are there any drawbacks for accounting firms who use social media?Â How would you design a policy that would help in preventing these issues?
Contractors should be educating themselves on the impact of the new proposed revenue recognition standards and the recently published (June 24, 2010) exposure draft pertaining to revenue from contracts with customers. Public comments are due October 22, 2010, and it is expected the standards will be finalized in 2011.
1. What are some of the significant changes in this standard that will affect contractors?
2. How will the proposed standard define the economic unit of measure?
3. Explain what the new cost of capitalization rules will mean for contractors.
Given the last yearâ€™s trend, is there an end in sight to new record-low interest rates? For example, on July 22, Freddie Mac’s Primary Mortgage Market Survey, which provides a snapshot of national average mortgage rates, reported a national average rate of 4.56% with 0.7 points on a 30-year fixed-rate mortgage. At the same time last year, the rate was 5.2% with 0.7 points. Given these changes and the housing crisis, many are turning to mortgage fair events for additional information.
1. Assume that the women in this video has a fifteen-year $175,000 mortgage with a 7.5% interest rate and a monthly payment of $1,622.28. What is the interest portion of her first payment and how much is her principal reduced by with her first payment? If she refinanced this loan for 30 years at the same interest rate, what elements of her mortgage would change?Â
2. The woman at the end of the video said that her mortgage was upside down. What does that mean? Why does she need an appraisal?
3. What do you see as the benefits for having mortgage fair events like these?
4. What is a point that is charged on mortgages and how do these affect the homebuyer? Source:
Bank of America incorrectly classified as much as $10.7 billion in short-term lending and repurchase deals for mortgage securities as sales. This claim surfaced in a May 13 letter to the SEC where the banking corporation alleges that the transactions were immaterial and that it would be beefing up its internal accounting controls.Â This letter was sentÂ in response to an SEC request of finance chiefs at about two dozen firms in March, asking whether they employed accounting strategies like Repo 105 used at Lehman Brothers Holdings Inc.
1. In the letter, the bank said its incorrect accounting for the six trades wasn’t intentional. “We do not deliberately structure transactions that are economically disadvantageous simply for the purpose of recording a sale or reducing recorded liabilities.” What must their incorrect journal entries have been?
2. Why did the bank include the phrase that â€œits incorrect accounting for the six trades wasn’t intentional?â€
3. What does â€œend-of-quarter window dressingâ€ mean in terms of this event? What is Repo 105?
4. Do you agree or disagree that this amount is not material enough to disclose? Explain your answer.
According to market research firm, Apple’s iPhone 4 wireless handset components cost about Â $187.51. The iPhone 4 sells for $199 and $299. The most expensive component is the LG display that costs $28.50. According to the consultant, the iPhone has typically hovered around the $170-to-$180 cost range because Apple seems to be trying to hit some kind of budget.
1.Â According to the article the firm that put this information together used a teardown analysis.Â What is this?
2. What are some of the reasons that Apple would put together this $170-to-$180 cost point budget?
3.Â What is the markup on the gyroscope chip? What percent of the total part cost is the display?
4.Â What percent profit is made on the iPhone 4 as compared to the iPhone 3GS?
In a last-minute change to the financial reforms bill, Congress allowed Wall Street to continue to sell interest-rate swaps directly, rather than isolating these derivatives in separate units. The thinking behind this move is that the interest-rate securities are benign, or at least less dangerous than credit default swaps, which the legislation requires banks to detach from their main operations.
1. What is an interest-rate swap?Â Do you think that Congress’ action regarding interest-rate swaps was a good idea?Â Why or why not?
2. What is an auction-rate security?
3.Â How was the hospital industry harmed by these financial instruments?Â What other entities took a hit from these financial instruments?