CIRCUIT CITY STORES, INC 1. ¿Cuál de los tres alcances de la contabilidad para la garantía extendida y contratos de servicio es más consistente con la actual substancia de transacciones de ventas con respecto al equipo y al contrato de garantía extendida? Explique su selección y razonamiento completo. El método más consistente en este caso sería el de ingreso diferido en la venta del contrato de garantía extendida ya que el equipo y el servicio tienen precios separados y son dos transacciones
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the stock price because overstate of sales revenue. * Deferral of revenue method records the product sales and extended warranty separately, it will have a higher relevance because some of the customer did not purchase warranty. According to Circuit City Stores, Inc. (A), “between 40% and 70% customers would purchase both the item for sale and the
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Erik Peterson case Analysis Introduction: Erik Peterson, The general manager of GMCT Telephone Company is facing considerable amount of issues relating to launch of pre operating system. Peterson has to report, Chip Knight the director of pre operating system in two weeks. Peterson is looking forward to talk with knight about his plan for dealing with problems which he is facing. About Erik Peterson: Erik Peterson was native of Minnesota. He was 31 year old, he attended business school. He did
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store, Circuit City is an example of a failed business. They were leaders in business for 60 years. Due to certain actions of management, this electronic retail giant, who was once the nation’s second largest electronics retailer was forced into bankruptcy on November 10, 2008 . 1 Circuit City’s success was built on a culture of discipline that practiced and followed the “4-S” model (service, selection, savings, satisfaction). “It was because of this consistency that Circuit City
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sales transactions involving equipment and extended warranties. Circuit City matches up almost perfectly with the five criteria in Exhibit 2. They incur the selling costs, they have a service network in place and warranty expenses are forecasted with a great deal of accuracy. Very few customers go above the allocated cost of the service warranty, thus Circuit City does not employ a deductible. After a warranty is purchased, Circuit City’s cost and profit can be expensed with a reasonable degree
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not cause Circuit City to perform so poorly. How confident are you in your evaluation? Why? After reviewing the article, one can be confident that the replacement of highly paid workers was what made Circuit City perform poorly, which led to Circuit City closing. One can be confident that high paid skilled workers is what hurt Circuit City due to Best Buy being able to outperform Circuit City with less quality people and lower wages. Highly paid workers hurt Circuit City due to Circuit City not being
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shoppers. Circuit City is one of the stores that saw its demise for many reasons within the bad economy at the time of their existence, and decreased consumers spending and companies poor management. Lack of customer’s support, recognition and bad management lead to the companies threat of opportunities to strategize when the economy changed after Circuit City failed in innovating strategies of improving their competitive advantage. Best buy gained a competitive advantage over Circuit City non-existence
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products, the company offered large and small appliances, ranging from refrigerators to coffeemakers, and entertainment software, including compact discs, audio and video cassettes, and computer software Although the company had overtaken archrival Circuit City in the late 1990s to become the largest consumer electronics retailer in the United States, its victory was marginal and the price reductions needed to capture market share had hurt Best Buy’s profit margins(International Directory of Company Histories
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Complex Decision-Making and Brand Loyalty COMPLEX DECISION MAKING High involvement purchases are recognized as those purchases that pose some level of risk on the purchaser or consumer. This can be further divided into brand loyalty, it is a habit, or complex decision-making, if there are many difference between brands and the products offered. Some examples include a house, a car or a big screen TV like the one my roommates and I bought in the end of August. As we were putting together our new
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Circuit City Stores, Inc. was an American retailer in brand-name consumer electronics, personal computers, entertainment software, and (until 2000) large appliances. The company opened its first store in 1949 and pioneered the electronics superstore format in the 1970s. By the end of 2008, Circuit City was the second largest U.S. electronics retailer, behind Best Buy. There were 567 Circuit City Superstores nationwide, ranging in size from 15,000 to 45,000 square feet. On November 4, 2008, Circuit
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