...Biovail Corporation Case Study 1. The truck’s trailer dimensions are: 17m x 4.5m x 2.5m. To convert the trailer dimensions to centimeters to compare the volume of the boxes to the volume of the trailer: 1 meter = 100 centimeters 17m= 1,700 centimeters 4.5m = 450 centimeters 2.5m = 250 centimeters So the dimensions of the truck in centimeters are: 1,700 x 450 x 250, the volume of which is 191,250,000 cm3 1.5x = 191,250,000 x =127,500,000 In order to carry $10 million of product, only 1 truck is needed. 2. In its most recent filing with the U.S. Securities Exchange Commisions, Biovail recognized revenue when the product was shipped to the consumer (FOB shipping point), meaning the buyer is responsible for the product when it leaves the premises at Biovail. If it recognizes revenue this way, then sales would be recognized net of reserves for estimated product returns, recalls, rebates, and/or chargebacks. If, instead, Biovail recognized revenue under “FOB destination”, then Biovail would be responsible for the product until it’s in the buyer’s possession. It would clear up who would be responsible for loading and unloading costs. Biovail, should recognize revenue under FOB destination to avoid issues of misplaced product. 3. If Biovail recognized the revenue from the sale at the moment the product left Biovail's facility, then the truck accident would not have impacted the company’s third quarter financial results. According...
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...LAWS7012 | Case Studies Topic 5 Case Study 1 Are the following self-education expenses deductible under section 8-1? Provide reasons for your answer. a. Barry, a trainee accountant, is studying commerce part-time at university. Barry enrolled after he started his employment with his firm. b. Brianna, a company director, was having difficulty coping with work due to stress brought about by difficulties with her family situation. She decided to attend a four-week course in stress management to help her deal with the situation. Brianna attended the course after hours and paid for it herself. c. Kieran, a computer salesman, takes six months leave without pay to undertake a business administration course at a private provider not registered as a higher education institution. He has an agreement with his employer that, upon successful completion of the course, he will be promoted to an assistant manager position with his current employer. d. After finishing her final year of school, Sarah enrols in a full-time fashion photography course at a TAFE college. She is supported by her parents during her studies and does not receive any government assistance. She works as a casual sales assistant on weekends. e. Stuart wants to be the manager of a hotel. He enrols in a hotel management course at a TAFE college, one semester of which involves an industry placement to gain work experience. Stuart is placed with a major hotel where he gains experience in all facets...
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...Case Review: Rohm and Haas 11/4/2010 Background 2 1983: $2B worldwide sale from 4 segments Kathon microbiocide products: $25M Polymers, resins, and monomers Industrial chemicals Plastics Fluid Process chemicals Specialty chemicals Kathon 886 MW Thayer School of Engineering Agricultural chemicals Petroleum chemicals Kathon MWX 11/4/2010 Background 3 Metalworking fluid: 60 million gallons in the US Biocides kill microorganisms in metalworking fluids Product name Treatment capacity Market potential Sale Volume Actual sale during 1st five month Thayer School of Engineering K 886 MW K MWX 1,000 gal 50-100 gal reservoirs $18M $20M $5.4M (1983) $0.2M (target in 1984) $2.1M $12,000!!! 11/4/2010 Optimistic Prospects for MWX 4 Great market potential ($38M) Maintenance biocides likely to gain market share Several advantages: • Easy to use • No maintenance • Safe • Higher effectiveness • Large customer surplus Thayer School of Engineering 11/4/2010 ... But it doesn‘t sell! 5 Lack of need recognition for biocides Lack of brand awareness among end consumers Lack of MWX awareness Lack of awareness of the benefits of MWX Lack of incentives for distributors to sell MWX Thayer School of Engineering 11/4/2010 End-User EVC of Kathon MWX 6 Compare costs incurred by end-user who does and does not use Kathon MWX Not Using MWX Using MWX Fluid Concentrate Purchase $ $ Fluid Disposal $ $ Risk of Fluid Disposal % % EVC ...
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...1. How many truckloads of product are actually required to carry $10 million of product? Show your calculations. It’s given to us that: Each 300 mg Wellbutrin® XL tablet was estimated to be roughly 0.5 cm3 with an additional 1.00 cm3 per tablet for packing space and a wholesale acquisition price of $2.83 per tablet, which included an assumed 400% mark-up for the Distributor as well as a 35% wholesaler margin. The interior dimensions of a typical 18-wheeler trailer were 17m x 4.5m x 2.5m. a) We need to find out the whole size of Wellbutrin® XL tablet 0.5 cm3 + 1.00 cm3 = 1.5 cm3 b) We need to calculate the volume of truck 17m x 4.5m x 2.5m = 191.25m3 191.25 m3 = 191, 250, 000 cm3 c) We need to define how many tablets will fit into a trailer 191 250 000 cm3 / 1.5 cm3 = 127, 500, 000 tablets d) To find out how many truckloads of product are required to carry $10 million of product, we need to calculate the revenue from one tablet without mark-up for Distributor as well as wholesaler margin. X + 4X + 0.35X = 2.83 1X+ 4X + 0.35X = 2.83 5X + 0.35X = 2.83 5.35X = 2.83 X= 0.52 e) The revenue from all tablets that could fit into a trailer is: 127, 500, 000 X 0, 52 = 66, 300, 000 f) How many truckloads of product are required to carry $10 million of product: 10,000,000 / 0, 52 = 19,230,769 tablets According to calculation $10 million of product could be fit into the truck. 2. How should the company recognize...
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...enterprise, and are also affected by it. 2. According to Porter, what determines the level of competitive intensity in an industry? According to Porter, the level of competitive intensity is determined by 5 basic competitive forces namely: (1) Threat of new entrants to a market (2) Bargaining power of suppliers (3) Bargaining power of customers or buyers (4) Threat of substitute products and (5) Degree of competitive rivalry 3. What should be scanned in the task environment? There should be an analysis of relevant elements in the task environment such as: (1) Competitors (2) Suppliers (3) Regulators (4) Strategic Partners (5) Labor and (6) Customers. 4. Discuss how a development in a corporation’s societal environment can affect the corporation through its task environment. 5. How can managers identify external strategic factors? a. Environmental uncertainty b. Issues priority matrix c. New entrants d. Entry barriers e. Rivalry f. Substitute products g. Bargaining power of buyers and suppliers h. Bargaining power of other...
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...Unit VIII Article Critique Columbia Southern University DBA 7553 1. Introduction of the Article This article is found in the Directors and Boards magazine. It is written by Donald P. Delves who “is president of the Delves Group, a compensation and corporate governance consulting firm that advises boards of directors” (Delves, 2012). The article is titled “What about everyone else? The problem may not be that executives are paid too much, but that employees are paid too little.” 2. Statement of the Problem Studied In this article, Mr. Delves examined why people complain about executive pay, how companies used to inflate employee earnings, and how companies can increase employee wages now. 3. Significance of the Problem Studied With sky rocketing pay for many executives over the last few decades, many employees have wondered why their pay has not also increased. In the past companies have used stock options to provide incentive for employees and to use these as a pathway to increase employee pay. However with the economic recession and many of the changes in accounting practices, companies could no longer use this incentive to increase wages for employees. Thus Mr. Delves presents the question, “what do we do about [increasing employee incentives]?” (Delves, 2012). If this question can be answered, it has the potential to not only increase employee productivity but also to provide them with increased opportunities. ...
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...1) Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy? Starbuck is a known corporation local and international for their freshly brewed coffee and other products that are offered. Social responsibility helps the company image, to care about the community and the environment, these are positive stand points that define the company self portrait. It's important how you look on the outside, in the end it's all about sales. As mention in the text “people first and profit last” once a corporation can fulfill its duties that benefit the consumer and the parties involve then there is no need to worry about the business profit. 2) Is Starbucks unique in being able to provide a high level of benefits to its employees? The text mention “it is better for a company to take some short-term loses than to lose sight of its core values in the long term “yes Starbucks is unique because not many restaurant offer the kind of benefits as Starbuck. The employees are important to the business and it helps to retain them. Offering health insurance, paid time off, and other perks are ways to keep employees happy which lead to great work effort and a successful business. It also helps to lower the business employment turnover rate and save the corporation money because they do not spend much money and recruiting new employees and to train them. 3) Do you think that Starbucks has grown rapidly because of its ethical and socially responsible...
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...to maximize a firms [sp] profit potential, a corporation should match its greatest strengths, with external factors to create opportunities. When assessing opportunities to acquire a new business unit, firms should only seek to acquire units that have strengths that match, enhance or can be combined with the firms established strengths. The article [which? there is no list of references -- you’re supposed to discuss an issue from class before discussing the article] is about how firms are purchasing business units that do not align with their strengths or the vision/mission of the parent corporation. Once the business unit is acquired the viable option is to sell if off in pieces because it is not contributing to the corporations strengths. We agree with the author [sp] premise that diversification should not be pursued unless it will help a parent corporation achieve its already established mission. Corporations should avoid acquiring firms that possess strengths or missions not aligned with the parent corporation. A firm should not see purchasing business units as strength [clumsy]; a corporation’s strength is not an action. A corporation should see the reason why they have accumulated the financial resources necessary to purchase additional business units as their strength. Once that strength is identified the corporation should be pursing business units that have underlining strengths that will enhance the parent corporations [sp] ability to pursue their mission and maximize...
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...Introduction and Course Philosophy: This course covers accounting theory and practice for business combinations, segment and interim reporting, foreign exchange and partnerships. Business combinations cover most forms of mergers and acquisitions, which are common among business entities. Segment reporting is how management disaggregates financial results into meaningful business performance. Foreign exchange covers the basics of currency transactions and translation including hedging, which are common in the global economy. Finally, in partnerships we cover more extensively the formation, operation and dissolution of general partnerships, the most prevalent form of business in the United States. In my career in financial services, I was personally involved in 3 large business combination involving aspects of mergers, segment reporting and foreign exchange that we will discuss in class. You will be exposed to the authoritative accounting literature covering each area and get hands on experience in solving typical problems faced by accounting practitioners. We will complete the entire syllabus. Required Text: Advanced Accounting---11th edition, Hoyle, Schaefer and Doupnik McGraw Hill/Irwin 2013. A separate loose leaf edition, with only the chapters we cover will be available exclusively at the Queens College bookstore. The ISBN for the looseleaf edition is 9780077772932. Acquiring the loose leaf edition gives you the convenience of being able to bring only the chapters...
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...LEGAL FORM OF BUSSINESS In this paper we will compare and discuss different forms of business and their advantages and disadvantages. Following are the different type of business formed to conduct work: 1. Sole proprietorship. 2. Partnership. 3. Limited liability partnership. 4. Limited liability company. 5. S corporation. 6. Franchise. 7. Corporate. 1. Sole proprietorship, The sole proprietorship is a type of business entity that is owned and run by one individual. All the decisions of the business are made by that individual and there is no legal distinction between that individual and the business. Following are the advantages and disadvantages of Sole proprietorship Advantages They have the ability to raise capital either publicly or privately. To limit the personal liability of the officers and managers. Limit risk to investors. Sole proprietorships have the least government rules and regulations affecting it. Owners have complete control over all the aspects of his or her business. The owner can take any managerial decisions that he/ she wants to take. Disadvantages Raising capital for a proprietorship is more difficult because an unrelated investor has less peace of mind concerning the use and security of his or her investment . The investment is more difficult to formalize other types of business entities have more documentation. The enterprise may be crippled or terminated if the owner becomes ill. The business is the same legal entity...
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...Anthony and Karen were partners doing business as the Petite Garment Company. Leroy owned a dye plant that did much of the processing for the company. Anthony and Karen decided to offer Leroy an interest in their company, in consideration for which Leroy would contribute his dye plant to the partnership. Leroy accepted the offer and was duly admitted as a partner. At the time he was admitted as a partner, Leroy did no know that the partnership was on the verge of insolvency. About three months after Leroy was admitted to the partnership, a textile firm obtained a judgment against the partnership in the amount of 50,000. This debt represented an unpaid balance that had existed before Leroy was admitted as a partner. The textile firm brought an action to subject the partnership property, including the dye plant, to the satisfaction of its judgment. The complaint also requested that, in the event the judgment was unsatisfied by sale of partnership property, Leroy’s home be sold and the proceeds applied to the balance of the judgment. Anthony and Karen own nothing but their interest in the partnership property. What should be the result: With regard to the dye plant- With regard to Leroy’s home- Since Leroy was admitted before the judgment was actually brought upon the partners It would make him liable to subsequent debts of the partnership along with Anthony and Karen, since the dye plant was part of the deal when Leroy entered the partnership it would be considered...
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...organization. The single owner of business has entire ownership and control over the assets and capital invested in the business and he or she is individually responsible (subject to some restrictions) for the expenses and liabilities of the business. • Liability A different advantage, nonetheless, is that the proprietor of this business form is responsible for all the business liabilities. Therefore, if a sole owner business undergo into financial crisis, creditors can originate lawsuits against the sole proprietor. If lawsuits are successful then proprietor has to pay the liability with his or her money. The owners of this business form can, and frequently do, combine business and personal funds and property, unlike partnerships, LLCs and corporations, they cannot do this. • Income taxes Due to the fact that sole proprietorship is not distinguishable from its owner, its characteristics...
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...business owner, companies growing at hyper speed sometimes pay the price for its success. 1.2 DEFINE THE TERM “ MARKET LEADERSHIP.” WHY DO FIRM WORKHARD TO OPTAIN LEADERSHIP? Market leadership is the position of a company with the largest market share or highest profitability margin in a given market for goods and services. Market share can be measured by how much the goods sold in the market. Market leadership is usually understood in terms of the position of a given company within an industry or market, based on three factors. When determining whether a corporation can properly be referred to as a market leader, the profitability of the company will play a major role. Along with how profitable the company happens to be, the market share volume and value will also be considered. While market leadership does not necessarily require the highest profitability margin or largest market share in the industry, a corporation is normally expected to demonstrate a consistent level of profitability from one financial period to the next. That level of profit should be significant and represent a sizable share of the available market. When the company is able to sustain the profitability through shifts in the general economy as...
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...One of the most prominent food and beverage companies in the Philippines is the Republic Flour Mills (RFM) Corporation, established in 1958 by aspiring Filipinos. Dr. Salvador Araneta pursued and succeeded his dream of making a way to save foreign exchange and create local jobs by starting out a local flour mill. Along with his wife, Victoria Lopez de Araneta, son-in-law, Joe Con and associates, Jose Concepcion, Sr., BJ Server, Pete Grimm, Albino Sycip, Zoilo Alberto, Leonardo Eugenio, Francisco Gamboa, Sr., they have come together to become a strong team. Their strength carried throughout endeavors during the difficult state of the Philippine economy in order to operate the mill. One of the issues was the American monopoly in the Central Bank of the Philippines for resisting to grant RFM the mandatory dollar allocation. With persistence and cooperation, RFM has then pioneered the flour-milling industry in the Asian region by starting out as a single company manufacturing bags of flour to a distinguished multi-company enterprise leading a number of branded products. RFM Corporations stands as a strong contender in the Philippine consumer market for offering a wide variety of food and beverage products such as: White King (cake mixes and flour-based products), Fiesta (Pasta and Sauce), Swift (meat based products), Sunkist (fruit juices), Selecta (milk- based products) and Selecta (ice cream, under the joint venture with Unilever). A variety of partnerships, acquisitions and...
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...The Corporation: The Corporation is today's dominant institution, creating great wealth but also great harm. This 26 award-winning documentary examines the nature, evolution, impacts and future of the modern business corporation and the increasing role it plays in society and our everyday lives. The birth of the corporation: How the corporation came to be. Originally, corporations were set up to serve the public good. Corporation lawyers gained rights through the US Supreme Court using the 14th Amendment (set up to protect slaves) that gives them the rights of a person. In the last century, the corporation is given more and more rights while people are increasingly stripped of theirs. Origins of Corporations Although definitions and descriptions of corporations have changed dramatically through the last few hundred years, the first corporation actually began long ago – as early as the sixteenth century. It was a benchmark in the history of money and business, transforming an economy from what was essentially a debt economy (when it came to merchant work) to a state-sponsored enterprise. This type of business was brilliant and revolutionary for the early business world, allowing businesses to take risks and expand in ways they had been unable to do before. The concept spread and grew, and by the seventeenth century, the corporation was well on its way to being an acclaimed and established center for regular commerce. When corporate business came to the newly born United...
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