SUMMARY For over 70 years‚ US taxpayers have been able to value the cost of their inventories using the last-in‚ frst-out inventory method of accounting (LIFO). In general‚ to use LIFO for federal income tax purposes‚ taxpayers must also use LIFO for fnancial reporting purposes (herein referred to as the LIFO conformity requirement). The use of LIFO for fnancial reporting purposes is not permitted under International Financial Reporting Standards as promulgated by the International Accounting Standards
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Student Name: ZHANG QIWEI Student ID Number: B414498 Arguments for and against LFO abolition in the US What are the arguments in favour of retaining LIFO? The arguments are being made on a number of different grounds so be clear to separate these out. What are the arguments in favour of the US abolishing LIFO? Should decisions on matters such as this be made on the basis of what is the most appropriate from an accounting perspective (i.e. principles) or from the perspective of the impact of
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4. What type of strategy has Nucor followed? Which of the five generic strategies discussed in Chapter 5 is Nucor employing? Is there any reason to believe that Nucor has achieved a sustainable competitive advantage over many of its steel industry rivals? Is so‚ what type of competitive advantage does Nucor enjoy? Since F. Kenneth Iverson took the role of CEO at Nucor‚ he guided the company to work under a focused low-cost leadership strategy‚ with great focus in high quality and employing state-of-the-art
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discuss in class the case study: “Nucor Corporation: Competing Against Low-Cost Imports” Case on page C-193. Use the following questions to perform your case study. “Nucor Corporation: Competing Against Low-Cost Steel Imports” case 10 page C-193 case study Assignment Questions: 1. What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces
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March 13‚ 2014 SUBJECT: Should Nucor Adopt the CSP Process? Cash Flow Analysis Cash flow analysis on Exhibit 1 represents net cash flow calculation using the base assumption. According to this calculation‚ Nucor would have net present value of $(11.99) million which is a negative value. This negative value on NPV indicates potential unprofitable consequences after implementing SMS’s compact strip production (CSP); therefore‚ Nucor should not invest in this new technology.
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NUCOR MEMORANDUM To: F. Kenneth Iverson and Management Team of Nucor Corporation CC: AGSM Faculty Teams Subject: Investment Decision Date: 04/22/2009 From: 1713898 The Situation In 1986‚ flat sheet segment contained 52% of US total steel market1. Nucor Corporation‚ which is a steel minimill well-known for its leadership‚ efficient operation and well-structured compensation‚ is showing the interest in the flat sheet segment. At the same time‚ there are many new thin-slab casting technologies to
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Nucor at a Crossroads MGMT XXXX-XXX Nucor’s Historic Performance‚ Competitive Advantage‚ and Five Forces Analysis With roots dating back to 1904 in the automobile manufacturing industry‚ Nucor’s business strategy has morphed many times over the course of the past century in response to struggling sales and unrealized business strategies. Since F. Kenneth Iverson’s appointment as Nucor’s President in 1965‚ however‚ Nucor has performed very well. With a focus on efficiency‚ Nucor
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Nucor at a Crossroads Nucor at a Crossroads Case Analysis In 1986‚ three distinct segments defined the U.S. steel industry; integrated steel mills‚ mini-mills‚ and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107 million tons of steel per year‚ mini-mills produced a maximum of 21 million tons of capacity a year‚ and the nation’s specialty steel makers could produce a maximum capacity of 5 million tons of stainless and specialty grades of steel. This leads
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Case Study: Nucor Steel Corporation. Nucor Corporation is characterized by its owner‐operators who take pride in their work and teams and as a result have created great profitability for a traditional steelmaker. Nucor is known for many things including its pay practices that base earnings on performance as well as the value and trust the corporation places in its employees. At Nucor employees are rewarded based on their effort‚ treated with great respect and empowered to make decisions based on
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NUCOR CASE In this analysis we use the Net present value to consider if Nucor should invest in the new technology called: thin slab minimill. NPV is really useful in order to make this kind of decision because it uses the concept of future cash value to evaluate whether the investment is worth‚ however the NPV is sometimes difficult to calculate because it is not always easy to estimate future cash flow. Considering the assumption I made in the first part of the spread sheet‚ the thin slab project
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