Jeffrey Gennette is the CEO of Macy's (a United States retailer). Because Jeffrey's bonus is based...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jeffrey Gennette is the CEO of Macy's® (a United States retailer). Because Jeffrey's bonus is based on the company's earnings, he has directed the controller to use FIFO as the inventory costing method. Jason did not tell the controller his real reason for the directive; instead, he stated that he thought FIFO better reflected the actual flow of inventory costs. Review the following links and company websites then answer the questions. • The University Record Online: University of Michigan • Kohl's Масу's 1. Jeffrey's decision to select FIFO appropriate? Is it ethical? Is Jeffrey wrong if this will help the company and also benefit him too? 2. What are some of the pitfalls of a company basing a manager's or CEO's compensation on the company's earnings? 3. Using the links provided for Kohl's and Macy's® (a United States retailer); determine the inventory turnover ratio for the companies. What does this ratio tell you about these companies? How do the companies compare? You can reference page 6-21 in your textbook. 4. Using the links provided for Kohl's and Macys, calculate the number of days in inventory for the companies. What does this ratio tell you about these companies? How do the companies compare? You can reference page 6-21 in your textbook. und from Jeffrey Gennette is the CEO of Macy's® (a United States retailer). Because Jeffrey's bonus is based on the company's earnings, he has directed the controller to use FIFO as the inventory costing method. Jason did not tell the controller his real reason for the directive; instead, he stated that he thought FIFO better reflected the actual flow of inventory costs. Review the following links and company websites then answer the questions. • The University Record Online: University of Michigan • Kohl's Масу's 1. Jeffrey's decision to select FIFO appropriate? Is it ethical? Is Jeffrey wrong if this will help the company and also benefit him too? 2. What are some of the pitfalls of a company basing a manager's or CEO's compensation on the company's earnings? 3. Using the links provided for Kohl's and Macy's® (a United States retailer); determine the inventory turnover ratio for the companies. What does this ratio tell you about these companies? How do the companies compare? You can reference page 6-21 in your textbook. 4. Using the links provided for Kohl's and Macys, calculate the number of days in inventory for the companies. What does this ratio tell you about these companies? How do the companies compare? You can reference page 6-21 in your textbook. und from
Expert Answer:
Answer rating: 100% (QA)
FIFO method of accounting overstates the ending inventoryThe last purchases are made at higher rate ... View the full answer
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
Posted Date:
Students also viewed these general management questions
-
What are some of the pitfalls of empirical research?
-
What are some of the pitfalls of this kind of segmentation?
-
Your client, Casey Farber, is the CEO of a publicly traded corporation. This year, her compensation consisted of $600,000 in cash and $600,000 of stock. The stock received was part of a restricted...
-
Plastic Co Pte Ltd (Plastico) is a Fiji company. The company has issued and paid up capital of $250,000 held in equal parts by two brothers. The companys business involves making plastic products for...
-
List five ways that marketing research can contribute to effective business decision making.
-
(i) Apply RESET from equation (9.3) to the model estimated in Computer Exercise C7.5. Is there evidence of functional form misspecification in the equation? (ii) Compute a heteroskedasticity-robust...
-
Write some interviewer instructions for in-home personal interviews to be conducted by students. How would your instructions change if the survey is administered in social media?
-
A thief stole a car and sold it to a good-faith purchaser for value. This person resold the car to another buyer, who also purchased in good faith and for value. The original owner of the car sued...
-
heridan Manufacturing has equipment that cost $ 7 5 2 4 0 0 and has accumulated depreciation of $ 3 4 2 0 0 0 . When the equipment has a fair value of $ 6 8 4 0 0 0 , it is exchanged for equipment...
-
Readers Digest has asked you to analyze an investment proposal that it has received. This proposal relates to Readers Digest producing a CD-ROM version that will contain the text of all of the...
-
Define the concept of protocol architecture highlighting the following elements: i. Describe a protocol architecture. ii. How a protocol architecture should works? iii. Name two examples of protocol...
-
A colorblind man and his wife have four children, 2 boys and 2 girls. One of the boys is colorblind and so is one of the girls. What is the genotype of the mother? What are the genotypes of each of...
-
Which federal law has established three (3) important time periods in the filing of shares to public shareholders?
-
Suppose it is known that the number of goods "X" demanded and offered at two different price levels is as shown in the following table: Price (IDR) 2400 2000 Amount Requested (Unit) 120 160 Amount...
-
In Drosophila, white eyes are an X-linked character. The mutant allele for white eyes (w) is recessive to the wild-type allele for brick red eye color (w). A white-eyed female is crossed with a...
-
Following are three economic states, their likelihoods, and the potential returns. Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your...
-
Carla Vista Inc.'s books revealed the following data at year end after all adjustments were made: Cash sales Sales returns (on credit sales) Allowance for expected credit losses (credit balance)...
-
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
-
Visit the Web site of the National White Collar Crime Center at www.nw3c.org. This site is funded through a grant from the Department of Justice. Its purpose is to assist federal law enforcement...
-
(True and false) 1. Many organizations merely dismiss dishonest employees because of the expense and time involved in prosecuting them. 2. Appropriate hiring will not decrease an organizations risk...
-
List and describe the steps of the data-driven fraud-detection approach.
-
Calculate: (a) \(f=a /(b c)\), where \(a=2.34\mathrm{~mm}^{2}, b=54.26\mathrm{~m}\), and \(c=0.14\mu \mathrm{m}\); (b) \(g=k t^{3}\), where \(k=1.208\times 10^{-2}\mathrm{~s}^{-3}\) and...
-
Which of these is a hierarchical approach of subordination of individuals that work together and contribute to serve a common goal? Formal organization Informal structures Functional structure ...
-
A sound organization Prevents corruption Enhances creativity None of the above All of the above
Study smarter with the SolutionInn App