Would the costs related to the clothing vending machines that Uniqlo has installed in airports and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Would the costs related to the clothing vending machines that Uniqlo has installed in airports and shopping malls be expensed or capitalized? Uniqlo, a Japanese clothing designer, manufacturer, and retailer, is installing vending machines in some airports and shopping malls in the U.S., including Oakland Airport (San Francisco), George Bush Intercontinental Airport (Houston), and Queens Center (New York.) Uniqlo's thermal jackets and parkas, which are thin, warm, and easily packable, are going to be stocked in the machines. Other clothing items will also be dispensed in the machines. Offerings will change with the seasons and customer preferences. Note: For the following questions, students should assume that Uniqlo accounts for its inventory on a perpetual basis and makes entries on a per-item basis. In real life, some level of aggregation of sales will likely occur. Discussion Questions 1. Would Uniqlo capitalize or expense the cost of the clothing vending machines? 2. Would Uniqlo capitalize or expense the installation cost of the clothing vending machines? 3. When would sales revenue for one parka in the vending machines be recognized? 4. When would the cost of one parka in the vending machine be moved from inventory to cost of goods sold? Would the costs related to the clothing vending machines that Uniqlo has installed in airports and shopping malls be expensed or capitalized? Uniqlo, a Japanese clothing designer, manufacturer, and retailer, is installing vending machines in some airports and shopping malls in the U.S., including Oakland Airport (San Francisco), George Bush Intercontinental Airport (Houston), and Queens Center (New York.) Uniqlo's thermal jackets and parkas, which are thin, warm, and easily packable, are going to be stocked in the machines. Other clothing items will also be dispensed in the machines. Offerings will change with the seasons and customer preferences. Note: For the following questions, students should assume that Uniqlo accounts for its inventory on a perpetual basis and makes entries on a per-item basis. In real life, some level of aggregation of sales will likely occur. Discussion Questions 1. Would Uniqlo capitalize or expense the cost of the clothing vending machines? 2. Would Uniqlo capitalize or expense the installation cost of the clothing vending machines? 3. When would sales revenue for one parka in the vending machines be recognized? 4. When would the cost of one parka in the vending machine be moved from inventory to cost of goods sold?
Expert Answer:
Answer rating: 100% (QA)
1 Assets are resources owned and controlled by the entity in order to generate turnover for the firm ... View the full answer
Related Book For
Foundations of Lodging Management
ISBN: 978-0132560894
2nd edition
Authors: David K. Hayes, Jack D. Ninemeier, Allisha A. Miller.
Posted Date:
Students also viewed these finance questions
-
The costs related to employee turnover are significant, managers should do what they can to minimize those c In addition to hourly pay, what factors do you think often make an employee leave one...
-
Inhale Retail Company keeps its inventory on a perpetual FIFO basis for internal reporting, but adjusts the year-end FIFO balance to a LIFO basis using a dollar value LIFO index. The auditor is...
-
Explain whether the costs related to hiring and training a companys employees are considered to be an operating or investing activity.
-
Compute the Regular Pay, Overtime Rate, Overtime Pay, and Gross Pay for each employee. Employees are paid weekly. Filing Employee Status Henry Smith Parker Liam Melanie Total S S S M S Hours Pay...
-
Hydrogen cyanide is used in the manufacture of clear plastics such as Lucite and Plexiglas. It is prepared from ammonia and natural gas (CH4). 2NH3(g) + 3O2(g) + 2CH4(g) 2HCN(g) + 6H2O(g) The...
-
Identify why you would expect the finance sector and investment funds in particular to have an interest in climate change.
-
A thin-walled filament-wound composite pressure vessel has fibers wound at a helical angle , as shown in Figure 1.45. Ignore the resin matrix material and assume that the fibers carry the entire...
-
Dewitt Industries has adopted the following production budget for the first 4 months of 2012. Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2011, the ending raw...
-
Find the area of the figure pictured below. 3 yd 11 yd Area 7 yd yd 2 yd
-
PART-4 PART-5 PART-6 Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-term) Accounts...
-
Translate function msort() in the following C code to RISC-V assembly code. Assume merge() and copy() are already implemented. The array passed to msort() has at most 256 elements. Your code should...
-
Under what circumstances would you use an image map versus a simple list menu?
-
What is referential integrity and how is it implemented in an RDBMS?
-
Label each of the following statements true, false, or uncertain. Explain briefly. a. The main determinants of investment are the level of sales and the interest rate. b. If all the exogenous...
-
Gabe and Gita both obey the two-period Fisher model of consumption. Gabe earns $100 in the first period and $100 in the second period. Gita earns nothing in the first period and $210 in the second...
-
What policy mix of monetary and fiscal policy is needed to meet the objectives given here? a. Increase \(Y\) while keeping \(\bar{i}\) constant. Would investment (I) change? b. Decrease a fiscal...
-
Amy has 4 t-shirts and some jackets for sale. The marked prices of T-shirts and jackets are both $120 each. She sold all the T-shirts and jackets at the marked price and resulted in a prodit of 20%...
-
a. What is meant by the term tax haven? b. What are the desired characteristics for a country if it expects to be used as a tax haven? c. What are the advantages leading an MNE to use a tax haven...
-
Identify two advantages of using a centralized accounting system in a hotel, as well as two disadvantages of such a system.
-
You have learned about several service styles in common use in hotel a la carte dining and banquet operations. How would you determine which style(s) to use for your operation?
-
Some hoteliers believe that the Internet will eliminate the need for travel agents. Do you agree? Explain your position.
-
2 kg of water at \(80^{\circ} \mathrm{C}\) is mixed adiabatically with \(3 \mathrm{~kg}\) of water at \(30^{\circ} \mathrm{C}\) in a constant pressure process of 1 atmosphere. Find the increase in...
-
A heat engine operating between two reservoirs at \(1000 \mathrm{~K}\) and \(300 \mathrm{~K}\) is used to drive a heat pump which extracts heat from the reservoir at \(300 \mathrm{~K}\), at a rate...
-
Calculate the entropy change of the universe as a result of the following processes : (a) A copper block of \(600 \mathrm{~g}\) mass and with \(c_{p}\) of \(150 \mathrm{~J} / \mathrm{kg} \mathrm{K}\)...
Study smarter with the SolutionInn App