Posts Tagged: qualitative issues in cost decision making

Bad Blood

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

Questions: 1. Explain why this is such an unusual labor action. 2. Based on John A. Davis’ blog, what could the board chairman do to help rebuild family unity and commitment to Market Basket? 3. At this point, Market Basket as a continuing entity is hemorrhaging financially. From a corporate governance standpoint, do you think… Read more »

Lose-Lose and Win-Win: Time for Change

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Financial Reporting and Analysis, Managerial Accounting.

Most airline tickets are nonrefundable and require a hefty change fee plus any fare differential. And many hotel rooms are totally nonrefundable and nonchangeable, so you could lose the entire value of your room. So why isn’t it the same policy when the airlines or hotel changes your arranged plans? As this article points out,… Read more »

A Complex Financial Crime Story

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Stephen Flatow, a grieving father, charged that Iran financed the Gaza bus bombing that killed his 20-year-old daughter in 1995. Buried in court filings, the suit alleged that money from a charity “fronted” financial transfers to terrorists from the Iranian government. In fact, the charity, known as the Alavi Foundation, actually operated and owned a… Read more »

Maybe This Will Catch On?

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

Complaining of low profit margins that generally accompany inexpensive menu items, most fast-food restaurants try to keep wages down. However, some fast food chains are seeing the benefit in paying employees above minimum wage and even above the median hourly wage for fast-food workers nationwide of $8.83, because it allows their workers to opportunities to… Read more »

The worth of an employee?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

CEOs talk about what valuable assets employees are, but these assets do not show up on the company’s balance sheet. Why? Because the company does not and cannot own its employees, even though it may seem so at times. However, employers can put a value on your life through company-owned life insurance (COLI). Questions: 1…. Read more »

When is a Raise Too Small?

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

Deeb Salem, a former Goldman Sachs trader, says that after making the company in excess of $7 billion in 2010, his $8.25 million raise was not enough compensation. Questions: 1. What percentage drop was Salem’s 2010 raise as compared to his 2009 raise? What percentage drop was Salem’s 2011 raise as compared to his 2010… Read more »

Separation of Power

Posted by & filed under Accounting Principles, Auditing, Financial Accounting, Intermediate Accounting, Managerial Accounting.

Netflix shareholders will vote on at the company’s annual meeting on Monday is a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder. Questions: 1. Who are the backers of this corporate governance issue and why do you think they are… Read more »

To compete or not compete – Upside or Downside?

Posted by & filed under Accounting Principles, All Articles, Managerial Accounting, Uncategorized.

Noncompete clauses are now appearing in far-ranging fields beyond the worlds of technology, sales and corporations with tightly held secrets, where the curbs have traditionally been used. Questions: 1. What industries have recently seen more noncompete clauses? 2. What clause were you most surprised at? 3. What are the costs and benefits of noncompete clauses?… Read more »

Is a Tattoo a Forever Thing?

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

According to a 2012 Harris survey, one in five U.S. adults has a tattoo, Interestingly, removing tattoos has also become a growing trade, as one in seven of these tattooed individuals express misgivings with their body art choices. In fact, some spend thousands of dollars for several searing laser sessions. Questions: 1. How many removals… Read more »

Tax is not so sweet!

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, a new study indicates how taxes might be used to curb consumption of sugary drinks and suggests that applying a tax based on the amount of calories contained in a serving rather than its size would be more effective. Questions: 1. What are the relationships that the study mentioned… Read more »