On the other side, low-income earners are not expected to purchase the company products in bulk or frequently. Nevertheless, consumer income is widely affected by the rate of inflation which determines the amount of money they receive as salaries and wages as well as the prices of the company’s product. Inflation is widely defined as the continued increase in prices of products and consumers.
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
Understanding Financial Crisis: Causes, Effect and Prevent measure To most ordinary people, Financial Crisis is a both familiar and unfamiliar topic. There is a range of definition of the Financial Crisis, but in general it is refers to the crisis of financial assets or financial markets or financial institutions. In fact, Financial Crisis is closely related to people’s life, 2007-2008 Global Financial Crisis attracted ordinary people to focus on the financial sector. This essay will argue the financial crisis of 2008 came from the US subprime crisis, which has brought enormous impact on the world economy, and in different societies, the countries have different prevent measures to cope with the crisis. For the aspect of cause, the US subprime
• Government regulations: Another major threat to virgin mobile can be change in government regulations domestically and globally. This can usually impose extra duties and taxes on services and telecom regulation. Also, if the government were to change regulations due to inflation or deflation, interest rates also increase which would make it harder for companies to fund or take loans and might even cause them to increase prices to cope with the changes in economy. Other than this, globally, tariffs and cultural differences can act as a problem for the
This is because of three main reasons: government controlling agenda, there are outside groups, whom have no influence and there is inequality amongst groups in the political system. If pluralism truly existed all groups would be equal as well as having an equal opportunity to be an insider group and therefore addressing the last two arguments. The most important argument against the utility of pluralism is government controlling the agenda. This is because groups can’t affect policy if it is not on the governments agenda. This is usually because of manifesto promises or ideology, and if these groups whose aims aren’t shared by government they will be outsiders.
Companies on a very large scale often have Board of Directors who will generally decide the distribution between the two different options. In general companies on a smaller scale chose a mixture of reinvesting profits into the business and giving their shareholders a dividend (often given annually). The liability of a company varies compared to the variety of a sole trader or a partnership owned business. A limited liability company (LLC) means that members of the company cannot be held personally liable for the companyâ€™s debts or liabilities. This is very different compared to sole traders and partnerships which can be held personally liable and have to cover any debts.
Fair value became a significant topic during the financial crisis in the U.S. in 2008. People started penetrating for responses for the reason behind something so horrible that could happen and desired something to put responsibility on. For some, fair value accounting was to be responsible but like all debated topics, there were others on the other side of the topic disagreeing in favor of fair value accounting. Opponents of fair value accounting include the American Bankers Association (ABA), the Independent Community Bankers Association (ICBA), as well as Steve Forbes (editor-in-chief of business magazine Forbes as well as president and chief executive officer of its publisher, Forbes Inc.), Blackstop Group Chairman Stephen Schwarzman, Former
People who avail defined contribution pension systems faces variety of risks. The contribution depends on the contributor’s income and duration of employment. After the contributions are made the rate of accumulation depends on interest rate, dividend payout and movement in asset prices. There are significant chances of fluctuation in the three of them. The average over long periods of time show less variation as compared to year to year changes, the pension that an employee shall be entitled to will
There are certain areas where still there is enough space for the improvements and processes can be more optimized. Few of the gaps that are identified while analyzing are discussed below: First, significantly reduced Days Sales Outstanding (DSO) can generate exemplified cash flow improvements in the financial supply chain management. Days Sales Outstanding (DSO) = (Accounts Receivable/Total Credit Sales) * Number of Days DSO, in general terms, means the average number of days it takes for company to collect revenue after the sale has been made. The sensitivity analysis given in the figure against the reduction in DSO is depicted in the above figure which very well describes the impact of DSO on the annual P&L benefits of the
Furthermore, in the last decade, an increasing number of major shareholders attempt to influence corporate behaviour by using their equity stakes in organisation to pressure the management for improved performance and increase the value of their investments. However, shareholder activism is believed to be very controversial. Some proponents of shareholder activism believe that the involvement of shareholders in the management of the company ensures that the invested capital is spend properly and that the directors do grant themselves excessive remuneration packages and focus mainly on maximisation of shareholder value. Opponents, on the other hand, often criticise a high degree of shareholder activism as they considered that active investors are mainly focused on their own short-term benefits and profits and not on the long term aims and goals of organisations (Corkery,