Posts Tagged: qualitative issues in cost decision making

Circumventing the Courts with Nine Words

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

Banning class action suits have essentially disabled consumer challenges to practices like predatory lending. Additionally, a Wall Street-led coalition of credit card companies and retailers, have also engineered blocks on class action suits. In this article, various companies’ efforts to protect arbitration are discussed. Questions: 1. Why has the “birth of a thousand clauses” taken… Read more »

Vintage Frauds

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

The issue of fake wines started to become headline news a few years ago when the so-called Thomas Jefferson bottles, several old bottles of Bordeaux, claimed to have belonged to Thomas Jefferson were offered by a German wine collector named Hardy Rodenstock. Bill Koch, the brother of the notorious Charles and David Koch, bought four… Read more »

What’s going on with Walmart stock?

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

The four members of the Walton family controlling more than half the shares of Wal-Mart Stores Inc. had $11 billion of their combined net worth evaporate Wednesday as shares of the retailer plunged on a lower earnings outlook for the coming fiscal year. Questions: 1. Who are the four Waltons that the article is talking… Read more »

Frauds in Small Family-owned Wineries

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

There have been a number of examples of wine-related crimes in recent times. In the wine industry, the most trusted employee could be the person least suspected of committing fraud. This article details some of the most recent frauds in the wine industry. Questions: 1. What types of fraud are highlighted in the article? 2…. Read more »

American Apparel Bankruptcy

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

American Apparel has been in the middle of a turnaround effort that includes store closings and some layoffs. The company also faces several lawsuits from ousted CEO Dov Charney. Now they face the bankruptcy court. Questions: 1. What were the allegations against previous CEO Charney and what types of financial strains has this put on… Read more »

New Mortgage Rules for Those with Student Debt

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.

New rules could make it tougher to qualify for a low down payment mortgage from the Federal Housing Administration, particularly with respect to down payment gifts and deferments associated with student loans. Questions: 1. What is the role of debt-to-income ratios in this story, as they related to student loans? 2. What is the old… Read more »

It’s Too Late for I’m Sorry!

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Volkswagen shares plunged more than 20 percent on Monday, their biggest one-day fall, after the German carmaker admitted it had rigged emissions tests in the United States, and U.S. authorities said they would widen their probe to other manufacturers. Questions: 1. Briefly explain the emissions data scandal. 2. What was the recent challenge to Volkswagen… Read more »

“A Very Dangerous Process”

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Specialists in infectious disease are protesting a gigantic overnight increase in the price of Daraprim,a 62-year-old drug that is the standard of care for treating malaria and toxoplasmosis. Questions: 1. What are the causes of price increases for drugs like Daraprim? 2. What is the past controversy associated with Martin Shkreli, the founder and chief… Read more »

Tax Accounting Fraud – A Chinese Way of Life

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

This article describes how businesses in China have to give out invoices called fapiao in order to ensure that taxes are being paid. However, as you will learn from Mr. Ding’s experience, the fapiao or the very mechanism intended to keep businesses honest, is the key to cheating on taxes. Questions: 1. What was the… Read more »

New Student Loan Default Study

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

New data suggests that many popular perceptions of student debt are incorrect. The huge run-up in loans and the subsequent spike in defaults have not been driven by $100,000 debts incurred by students at expensive private colleges. Instead, they are driven by $8,000 loans at for-profit colleges and, to a lesser extent, community colleges. Borrowing… Read more »