CHAPTER 5 Merchandising Operations and the Multiple-Step Income Statement ANSWERS TO QUESTIONS 1. (a) Disagree. The steps in the accounting cycle are the same for both a merchandising company and a service company. (b) The measurement of income is conceptually the same. In both types of companies‚ net income (or loss) results from the matching of expenses with revenues. 2. The components of revenues and expenses differ as follows: | | Merchandising | | Service | RevenuesExpenses
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PepsiCo and Dr Pepper Snapple. Coke Zero is successful because it was carried to new category – sugar free coke and be first to get into the prospect’s mind. It is filled a need for an underserved consumer -- young adult males‚ offering to anyone seeking great Coca Cola taste with zero calories. In a world where new products rise and fall all the time‚ great taste‚ relevant marketing‚ strong distribution and loyal consumers have helped Coke Zero to thrive. Coke Zero also has broken new ground with
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Proposing a Solution I live outside of a small town of 3‚000 people. The water system of our small town supplies drinking water to a population of 3‚000 to 5‚000. Our water system has been in place for 20 plus years and neglect has been rampant for almost the same period of time. Public water systems are governed by regulations and monitored by the State of Louisiana. The Town of Ferriday has been under state mandated “boil orders” more times that you could count. One of the more recent events
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Coke vs. Tap water Defining words: Stealth- secret‚ clandestine‚ or surreptitious procedure. Covertness. Surreptitious- Kept private because people won’t approve Purveyor- Dutifully Concoction- mixture of various ingredients Hyperbole- exaggerated statements or claims not meant to be taken literally. Hypocrisy- claiming to have moral standards or beliefs that contradict ones behaviour Covert gambit- not openly displayed manuver to take advantage of. 1. It will compare the coke and water. 2. “Beverage
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Coke Zero Case Study Coca Cola is world renowned soft drink. Unfortunately when it comes to taking health into consideration this is one of the last things one should be ingesting into their system. That’s why Coke introduced Diet Coke in 1982. Unfortunately the typical male consumer shies away from dieting due to social pressure for being perceived or mistaken for the feminine persona often categorized as a homosexual. With proper understanding‚ Coke was able to market a no calorie‚ body conscience
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company in the United States and the second largest in the world after Nestle. Pepsi is the second most recognized beverage brand in the world‚ after Coke. You may find Pepsi drinks in fast foods such as Taco Bell‚ Pizza Hut‚ and Kentucky Fried Chicken. With brands like Pepsi Max‚ Diet Pepsi had been push to the sidelines. Now PepsiCo is introducing a new package for Diet Pepsi. It has been four years since Diet Pepsi received dedicated attention. Sales have been steady in spite of advertising
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Background Established in 1965 PepsiCo created in 1965 through the merger of Pepsi-Cola and Frito-Lay In 1997‚ publicly traded company to focus PepsiCo on food and beverages. The world’s largest snack and beverage company in 2006 In 2006‚ PepsiCo has approximately $35billion net revenue The company is broken into four business divisions: ◦ Frito-lay North America Frito-Lay North America manufactures‚ markets‚ sells and distributes salty and sweet snacks. Products manufactured and
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A Summary of the Essay “Caught in the Net” In the essay “Caught in the Net” Eva Tihanyi explains that people use the internet in different ways and not all to the “same extent” (111). She classifies people into three types of internet users: “dabblers‚ regulars‚ or addicts” (111). Tihanyi describes what attracts people to the Internet. She tells the reader how she uses the Internet every day. Eva Tinanyi shows from this description of her own personal use how the Internet is a way to obtain
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Introduction The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive Strategy: Techniques for Analyzing Industries and Competitors“ in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially‚ competitive strategy should
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Strength Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large free cash flow). o Great brands‚ strong distribution‚ innovative capabilities o Number one maker of snacks‚ such as corn chips and potato chips PepsiCo sells three products through the same distribution channel. For example‚ combining the production capabilities
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