The majority of Target inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Target use the retail inventory method to account for inventory and cost of sales. Under LIFO Target uses this method for inventory because using the last-in, first-out (LIFO) method this determines the cost-to-retail ratio to each merchandise ending retail value. The cost of our inventory includes:
P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin.
Costing systems help companies determine the cost of a product related to the revenue it generates. Two common costing systems used in business are traditional costing and activity-based costing. Wilkerson is currently using the traditional costing system. “Companies that use the traditional costing method assume that the volume metric is the underlying driver of manufacturing overhead cost.” Traditional product costing was established when direct material costs and direct labor costs accounted for the bulk of product costs incurred inside a firm.
As such, governments adhere to a different set of financial reporting and accounting standards. Governmental accounting and financial reporting standards help stakeholders assess how public resources were acquired and how resources are or will be spent. Accounting is a systematic reporting and recording of assets, liabilities, capital, income and expenditure. Because the public sector operates under a different environment then the private sector, government accounting is specific to the functions of the public sector. State and local governments follow the principles and guidelines developed by the Government Accounting Standards Board (GASB). Financial reporting provides decision makers with financial information they need to make informed decisions and is the responsibility of the administrator of the public funds. There are two types of financial reporting. Internal reporting, which is directed towards management and elected officials to provide them with financial information they need to manage the government daily. External reporting is designed to meet the needs of stakeholders without direct access to the information contained in the government accounting system, such as citizens, grantors, and oversight
Different companies are going to have different accounting cycles because even though there are some similarities, there also some differences in activities that each company performs. A manufacturing company purchases raw material in order to manufacture their supply inventory and then sells it to a retail company. A retail company purchase supply inventory from the manufacturing company and then sells it. For example, Apple Inc. is a company that manufactures electronic inventory items and then sells it to a retail store, such as Best Buy.
Net sales, cost of sales, gross margin, expense, operating income, interest income, taxes, cash, assets, long-term and short-term liabilities, Properties, common stock dividends, total shareholder’s equity are all the accounting policies. All of those and other financial data be used in preparing the Macy’s financial reports.
The Goal is a novel that tells a story about a devoted plant manager, Alex Rogo. Mr. Rogo faces several challenges at the plant as the manager as his division is constantly behind in fulfilling their orders and has a negative cash flow. Mr. Rogo is given a three-week deadline to turn things around, fulfill orders and generate positive cash flow. Mr. Rogo is guided by his former physics professor, Jonah, where he learns that in order to succeed in business, you must be focused on; throughput, inventory and operational expenses. These concepts however, differ from our traditional day-to-day definitions.
By April 2016, within the next six months the pharmacy department will cut the drug inventory budget by 25%. This in alignment with the Humble surgical request that every department need to cut its budget.
In the chapter “Price of Victory”, McGerr’s thesis states the demise of progressivism was catalyzed by the middle class as they felt threatened by uprising unions, high cost of living, and the income tax. “The middle class…. [was] the dominant power expressing itself through the Progressives”; and they did not believe in the Progressives’ outcomes of World War I as it hindered them socially and financially (280). The middle class had a negative association with unions as unions advocated for better wages and more rights, which increased the price of products. The higher cost of products forced the middle class to have a lower quality of life as they had less money. The Progressives’ war effort generated inflation that was formed by the increase
In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. The management believes in collecting and assigning cost data that is being shifted away from control. There is a recognition related to the repetitive exercise of planning and re-planning for creating a full time job for accountants. The assessment and evaluation of cost data in the aspects of launching new product by Marks and Spencer is about gaining insights and learning ways for achieving the goals of organisation in most effective manner. The management of the organisation has been assisting
Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and other elements that they claimed concealed their “true” performance.
Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery segment operating a network of company-owned and franchise-owned restaurants in the United States and international markets. Domino’s Pizza’s Vision illustrates a company of exceptional people on a mission to be the best Pizza Delivery Company in the world. Domino’s started out small with the legendary Tom Monaghan who bought his first pizza restaurant and called it Dominick’s. It was re-christened Domino’s Pizza in 1965. However, in 1978, the 200thDomino’s restaurant opened, and things really began to cook. By 1983 there were 1000Domino’s restaurants, rising to 5000 in 1989. Today, there are more than 9000
H&M also known as Hennes & Mauritz is one of the most leading apparel companies globally; one of creativity and style. The company is one which believes that it should offer to its customers fashion and quality at the best price.
Throughout the years, several different methods have been developed, which are dependent on the respective regulations of countries and institutions, such as the Internal Revenue Service (IRS). The most common inventory methods include FIFO (first-in, last-out), LIFO (last- in, first-out), HIFO (highest-in, first-out), FEFO (first-expired, first-out), as well as the average costing method (AVCO). Each of them has their specific advantages and disadvantages, and comes with certain restrictions and regulations (Lee and Hsieh, 1983, p.7). This paper is going to take a look at the choice of inventory accounting methods of FIFO and LIFO, and is therefore not going to consider the other inventory accounting methods, as that goes beyond the topic of this
This report depicts the various stages of IKEA’s supply chain flow, providing an elaboration of processes that take place at each stage. It also shows the dependency of the stages and how information flows through the supply chain.