Essays on COGS

Return on investments

This metric measures the amount of revenue that a particular marketing campaign adopted by Heineken in different market regions and segment generates (Heineken, 2014). Venturing in to emerging markets has far higher implications. In 2011, the Middle East, Asia pacific Latin America and Africa accounted for 43% of the total volumes of the company compared to the 2006 21% volumes. This clearly implies that there is greater potential for excellence in these new markets. As such, the return on investment is high. This should be compared to the cost of running the campaign in order to determine if the campaign ...

Financial Analysis: Nike Inc.

General Information: 1) Corporation:

Nike Inc.

2) Home City:

Oregon, United States of America

3) Current Fiscal Year End: 4) Primary Products/Services: Nike Inc, was founded in 1971 and today, the company is the most valuable brand in the sports industry. Nike Inc. is engaged in the primary activities relating to design, devlopment and marketing of athletic shoes and apparels. 5) High-Low Selling Prices: 6) Describe Stock Price Trend: The stock price had been in the decreasing trend since beginning of 2nd quarter, however, post the beginning of 3rd quarter, a constant walk is seen in the stock prices. 7) Describe ...

Description of Wheatley’s Essay

Margaret Wheatley’s Essay “Innovation Means Relying on Everyone’s Creativity” has two central points guiding a wealth of practical knowledge on organizational leadership gained through her experiences. The first is that organizations act in the same way as living organism. The whole of the organization can be seen as a species that will change according to alterations to environmental conditions. The second part of her thesis is “People only support what they create” (Wheatley, 2001). This means that in order to get support for new policies or changes to the organization, everyone within the organization must play a role in enacting ...

Using the following imaginary company data the differing effects using LIFO vis-à-vis FIFO will be shown and explained. Assume a physical count determined 20 units in ending inventory. The first-in-first-out (FIFO) method assumes that the first units purchased are the first unit sold and to be expensed to cost of goods sold (COGS); therefore, the units remaining in ending inventory (EI) are comprised of the latest units to be purchased. The last-in-first-out (LIFO) method assumes the latest units purchased are the first units to be sold and to be expensed to COGS; therefore, the units remaining in EI ...

MEMORANDUM

Best Buy Co., Inc Analysis Introduction Best Buy is an accredited consumer electronics retailer. The company has a strong presence all over the world. That makes it a very interesting consideration for investment since the demand for consumer electronics will not slow down any time soon. Investors will always take a keen interest in a company’s nature of business, major costs, management style as well as financial performance before deciding on the company to invest in. This memo attempts a detailed analysis and description of the Best Buy’s activities, financial performance and future outlook, (Business, 4)

Revenue Generation

Best Buy Inc generates revenue ...

[Author]

Executive summary

In understanding cost and pricing dynamics in relation to profitability, at least four issues face the cost accountant in tracing product or service costs, the value of which will be used as an essential input in pricing decisions. These are complexity, accuracy, ease of estimation, and time. Joint cost allocation is an example of a complex cost tracing due to inevitable data gaps. Sunk costs exemplify a type of cost the accountants normally consider as marginal and, therefore, may be ignored in the cost trace. Opportunity costs also possess a unique characteristic in its “potentiality” by nature, although quantifiable based on ...

Company’s financial statements provide crucial details on different aspects on its operations. That includes information about its performance in terms of profitability, assets utilization and management efficiency, business liquidity as well ability to provide a suitable return for its stockholders. Thus, understanding the statements is crucial in all planning including operations, financial and marketing. In that respect, this analysis seeks to demonstrate how the statements can be used as a guide on marketing planning and general business management. To achieve that objective, the analysis uses the case of Abercrombie & Fitch and analyzes its financial statements for the year 2012 and ...

As the manager of a multinational car manufacturer, one’s task would be to ensure maximum efficiency of those below them in the assigned departments under one’s jurisdiction. In order to do this, it is necessary to ensure that all employees under the manager’s care are utilizing their skills, making use of their knowledge and training their fullest potential. A corporation is only as strong as its workers, like cogs in a machine, and it is the manager’s job to keep the proverbial machine running efficiently. The issue one runs into more often than not is what can a manager ...

Part A:

Vertical Income Statement Analysis: a)Trend in Net Income: Referring to the above conducted vertical analysis of the company, we find that over the years, the net profit margins of the company has improved, although a marginal declined was witnessed during the year 2013. By the end of the financial year of 2011, the company had Net Profit Margin of 13.22%, which later increased to 15.99% during 2012. This significant improvement in net margins was possible because of reduced percentage of proportion of COGS to total sales which during 2012, decreased from 47.16% to 46.70%. Important to note that ...

Introduction:

The paper discusses the financial trends in Meiji Holdings and General Mills Inc during the year 2012 and 2013. The trends will be covered for the following items: - Revenue - Cost of Goods Sold - A/C Receivables - A/C Payables

Trends in Revenue:

Analysis: Referring to the above data and graphs, we can infer that during 2013, the revenue figures of both the companies increased significantly. However, increase in revenue figures was more profound in Meiji Holdings, which during a year, was able to increase its revenue by 9.62%. On the other hand, during 2013, General Mills ...

Summary

This particular section sheds light on the measures used to assess the quality of financial reporting. The framework looks at a company's risk and success factors. The quality of the analysis depends on the inputs put into it. In addition, the quality of the measures used to assess financial reporting varies between companies, and can also be different for a single company for a period of time. Measures that are based on inventory suit retail businesses, measures that are based on depreciation suit capital intensive companies, and measures that are based on off balance sheet reporting are best suited to financial institutions. ...

It is rather difficult for businesspeople to make informed and wise decisions involving the risks, opportunities, and profitability of their ventures unless they have knowledge on the right tools and techniques to utilize. Entrepreneurs and corporations alike need not worry though because they are always take advantage of financial statements whenever they feel the need to examine the performance of their respective enterprises. Through income statements and balance sheets, for instance, businesses can immediately assess their profits, losses, assets, liabilities, and net worth at a given time. Nevertheless, evaluation of companies’ performance should never be limited with these fiscal records ...

13th, November, 2013

Analysis of Electronic Arts: Ratio Analyis and Effect of Alternative Accounting Methods on Ratios Profitability Analysis: The ratio analysis reveals that over the years, the profitability of the company is improving. In terms of net profit margins, the company has made an applausable leap from -25.8% to 2.6% over the years.(2009-2013 ) This year the net profit margin of the company has surpassed industry benchmark of 2%. Analyzing the ratios relating to decomposition of profit figures provides us with a better picture relating to working of the company over the years. Both Gross Profit Margins and Operating ...

Analysis of Starbucks

Starbucks Corporation is a global American company and a coffeehouse chain whose headquarters are in Seattle. This is the largest coffeehouse company whose stores are estimated to be 20,891 in over 62 countries. The company’s products include whole-bean coffee, full-leaf teas, cold beverages, micro ground instant coffee, snacks and pastries. In addition, they sell packaged food items, cold and hot sandwiches and items such as tumblers and mugs. Moreover, their locations offer beers, appetizers and even wines. They also have an Entertainment division which offers ‘Hear Music’ brand, sells music, films and even market books. The company’s portfolio ...

In the United States, Federation of Accounting Standard Bodies sets Generally Accepted Accounting Principles(GAAP) and outside United States,International Accounting Standards Board, sets the International Financial Reporting Standards(IFRS). The approach carried out in IFRS and GAAP accounting standards is different. There are many accounting treatments for various transaction that differ under both of the accounting standards.

LIFO Inventory accounting is not allowed under IFRS. However, US Firms following GAAP accounting standards are required to dislcose LIFO reserve in the footnotes of financial statements. LIFO Reserve = COGS LIFO - COGS FIFO

This adjustment enhances the comparability between US GAAP and IFRS firms.

Treatment of Interest and Dividends ...

Pearson’s Air Conditioning & Service

Summary statement The Pearson Air Conditioning and Service is a business that is based in Dallas. The business is owned by a father and his son; Scott and Bob Pearson respectively. Scott is the president of the business while Bob is the general manager. The firm engages in selling general electric equipment, carriers, York air conditioning and heating systems. Their main customers are local customers although the firm also sells to commercials.

Strengths of the business

The business makes good profits The firm’s equity state is well above the initial status when it was acquired The business maintains a balance of $15, ...

In early2003, Boeing aeronautical company announced its plan to build a ‘Super efficient’ airframe known as the 7e7, which was subsequently dubbed the ‘Dreamliner’. Michael Blair the team leader of the project announced in June 2003 that the 7e7 Boeing project was making excellent progress though amidst an unfriendly working environment. The technological superiority of the new airplane and the fact that the project had to penetrate an already rapidly growing market were the major arguments for the approval of the project. In addition, the idea of the airframe project came shortly after news of a six-month depressed airline market which ...

Introduction

Revenue recognition is an accounting principle which stipulates the exact time on which revenues from an activity can be recognized in the financial statements of a company. According to this principle, the appropriate time for revenue recognition is when the service has been rendered, as opposed to when the revenue is collected from the client. Explained in practical terms, Trackon ltd, company that sells consumer goods and commits to a transaction in the last month of an accounting year, whereas the revenues are collected in the next accounting period, in the books of account Trackon ltd will record the income in ...