producing it‚ then the message being sent to producers is that more output is demanded. In the pursuit of profi ts‚ more resources will be allocated towards the production of the product until the marginal cost and the price are equal. At the P=MC point fi rms maximize their profi ts and resources are said to be effi ciently allocated. Figure:------ Under the conditions of perfect competition‚ a market will be allocatively effi cient as long as the fi rms in that market produce at the P=MC
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Strengths: Revenue Growth: In 2008‚ FedEx reported revenue of $38 billion; in 2012 the company reported revenue of $42.7 billion‚ representing a year over year annual growth rate of 2.96%‚ and while this may not seem like an explosive number‚ the caliber of growth is solid and expected to accelerate into the future‚ with 2015 revenues reaching nearly $49 billion. Established Distribution System: The company possesses a massive fleet of airplanes‚ trucks‚ locations‚ and employees‚ and is distinctly
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Handout Cases on Revenue Recognition CASE 1 The Sea-Soft Water Company distributes its water softeners to dealers upon their request. The contract agreement with the dealers is that they may have 90 days to sell and pay for the softeners. Until the 90-day period is over‚ any softeners may be returned at the dealer’s expense and with no further obligations on the dealer’s part. If the water softeners are damaged while in the hands of a dealer‚ Sea-Soft agrees to accept the return of the
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Revenue and sales maximization Revenue maximization Maximizing sales revenue is an alternative to profit maximization and occurs when the marginal revenue‚ MR‚ from selling an extra unit is zero. The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales‚ rather than profit maximization. On a day-to-day basis‚ most real world firms probably do try to maximize sales rather than profit. For firms
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THE BASICS OF REVENUE MANAGEMENT IDeaS © 2005 Integrated Decisions and Systems‚ Inc. ID-MK-100102-v1-YMBasic The Basics of Revenue Management by IDeaS TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................................2 WHAT IS REVENUE MANAGEMENT? ........................................................................................4 When Is Its Use Appropriate? ......................................
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CHAPTER 5 REVENUES AND MONETARY ASSETS Chapter 5 is about Revenue Recognition and Monetary Assets. There are different criteria used in recognizing revenue depending on the standards the company is using. In general‚ revenues should be recognized when an entity has significantly performed what is required in the agreement‚ full ownership of goods is transferred‚ and services are rendered. The Securities and Exchange Commission (SEC) have identified fraudulent cases where the companies
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Chapter 10 Auditing the Revenue Process SEC SAB101: Revenue recognition 1. 有persuasive evidence 有证据 2. Delivery occurred‚ service rendered，东西给了服务于需求 3. Price is fixed/determinable 价格固定 4. 有collectability钱收的回来 Fraud Risk in Revenue cycle: 欺诈风险 1. Side agreement: off-book‚ adjust record to entice customer 2. Channel stuffing: 填塞分销渠道，造成销售假象 inflate sales by forcing product through a distribution channel 3. Related party transaction: 实质重于形式原则substance over form是指企业应当按照交易或事项的经济实质进行会计核算，而不应当仅仅按照它们的法律形式作为会计核算的依据
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CHAPTER 2: RELEVANT REVENUES AND COSTS The primary goal of a firm is to maximize profits. This implies‚ of course‚ that each decision a manager makes is consistent with that goal. Although managers are expected to rely on internally-produced reports‚ such as balance sheets and income statements‚ to help them make decisions‚ most of the information that appears on these statements is period-based rather than decision-based. A balance sheet shows the sum total of a firm’s assets and liabilities
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Revenue Recognition Policy (Note 2): A. Sale of goods Revenue Recognition According to the annual report ’s financial statement notes‚ CV Technologies (CVT) recognizes revenue when the title of goods is passed on to the customer‚ and when reasonable assurance exists regarding the measurement and collection of the consideration given. This means that once CVT ships its goods to their reliable customers‚ they will account for those goods as sold‚ and recognize the contract amount as revenue. This
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DRAFT MANAGING LOCAL REVENUE IN INDONESIA Raksaka Mahi *) Prepared for: CAN DECENTRALIZATION HELP REBUILD INDONESIA? A Conference Sponsored by the International Studies Program‚ Andrew Young School of Policy Studies‚ Georgia State University‚ Atlanta May 1- 3‚ 2002 Introduction The role of local owned revenues had been very small for a long period of time. In the past‚ almost ninety percent of total district’s revenue came from central government transfers and subsidies. Moreover‚ those transfers
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