Communication Case Essay Example for Free

Communication Case Essay Ethics Case 4-7 – Income Statement Presentation of Unusual Loss Requirement The Cranor Corporation suffered $10 million in expenses linked to a product recall. The company had endured product recalls in the past and they still occur in the business. To show revenue from continuing operations, Jim Dietz, the controller, wishes to describe the $10 million as an extraordinary loss, instead of an expense included in operating income. He states to the CEO that the company has never had a product recall of this size and that the corporation fixed the design flaw and improved quality control. The drawback is, in order for Jim to categorize the loss as an extraordinary item, he must view that the losses in the company’s financial statements are infrequent and unusual. He must also presume this event is not likely to occur again in the future profitability. (Spiceland, Sepe, Nelson, 2013, p. 188) The Journal of Accountancy states that extraordinary items are gains and losses that are material, and result from events that are both unusual and infrequent. (Extraordinary Items Share Exclusive Company , 2013) These criteria must be considered in light of the environment in which the entity operates. There obviously is a considerable degree of subjectivity involved in the determination. The concepts of unusual and infrequent require judgment. In making these judgments, an accountant should keep in mind the overall objective of the income statement. The key question is how the event relates to a firm’s future profitability. If it is judged that the event, because of its unusual nature and infrequency of occurrence, is not likely to occur again, separate reporting as an extraordinary item is warranted. The ethical dilemma faced by Jim Dietz and the company’s chief executive officer is that it appears from the facts of the case that it would be difficult for the company to come to the conclusion that a material product recall is not likely to occur again in the foreseeable future. This type of event has occurred before and is common in the industry. While a subjective judgment, extraordinary treatment of the $10 million does not appear warranted. Is the obligation of Jim and the CEO to maximize income from continuing operations, the company’s position on the stock market and management bonuses stronger than their obligation to fairly present  accounting information to the users of financial statements? If they decide to go with Jim’s suggestion, it would be misleading to the shareholders and creditors about the lost suffered. The misrepresenting of the stakeholders and money market would be sinful and display wickedness, while if the corporation is straightfor ward with the market and shareholders it will demonstrate moral values and show that the corporation is working in the best interest of the investors by not misleading them when it comes to losses. In Exodus 23:1-2 it speaks about bearing a false report. The New International Version states: â€Å"Do not spread false reports. Do not help a guilty person by being a malicious witness. Do not follow the crowd in doing wrong.† With Jim and the CEO being in a management position, they are required to perform many activities in running the entity in the best interest of stakeholders. Their duties include leading and directing an entity, including making important decisions concerning the acquisition, deployment and control of human financial, physical and intangible resources. They are supposed to take the charge for the preparation and fair presentation of the financial statements in accordance to the accounting policies. (Handbook of the Code of Ethics for Professional Accountants, 2013) I think the Cranor Company should include the loss in their net income and continue with the product recall. Including the loss in their net income will show honesty to its stakeholders. They may not receive a bonus, but it is better for them to be honest than risk the consequences of lying about the loss. Leviticus 19:11 says, â€Å"Do not steal. Do not lie. Do not deceive one another. (The Quest Study Bible, New International Version, 1994) By seeing the scripture we can detect how this relates to accounting ethics. Leviticus 19:11 explains that that we are not to steal, and ultimately mislead others. When we associate this verse to this ethical dilemma it would describe Jim Dietz and the company chief executive officer of deceiving the stock market into thinking that the loss was truly an extraordinary item on income statement when in reality, they are misleading them to get a bonus. References The Quest Study Bible, New International Version. (1994). Grand Rapids: Zondervan Publishing House. Extraordinary Items Share Exclusive Company . (2013, September 3). Retrieved from Journal of Accountancy: http://www.journalofaccountancy.com/Issues/2007/May/ExtraordinaryItemsShareExclusiveCompany.htm Handbook of the Code of Ethics for Professional Accountants. (2013). New York: International Federation of Accountants. Spiceland, D., Sepe, J., Nelson, M. (2013). Intermediate Accounting (7th ed.). New York: McGraw-Hill/Irwin.

Proposal for Pine Valley Furniture Ecommerce Webstore Essay -- Busines

Proposal for Pine Valley Furniture Ecommerce Webstore Now is the time to implement an Ecommerce webstore, and Eysie and Sehr Management Information System Consultants are the people who can make it happen. In an effort to maintain a competitive advantage Pine Valley Furniture needs to implement an ecommerce webstore. Making this transition and developing a webstore illustrates Pine Valley Furniture's commitment to change with the times and will prevent the loss of market share by competition. Trying to justify why Pine Valley Furniture needs to develop a webstore is futile, the reality is that developing a web-store for Pine Valley Furniture is a matter of survival. This proposal is a guideline and a road map in making Pine Valley Furniture a competitive webstore. First off, we need to focus on what our business objectives are and who our target audience is. As a corporation, our business objectives are to increase revenues for the shareholders while expanding our growth and lowering our costs. Market research has indicated that the areas of Corporate Furniture, Home Office Furniture, and Student Furniture have vast growth potential if properly managed on a webstore. If we are to create a webstore based fundamentally on pushing these three lines, we need to characterize what type of people will be buying these items. Corporate Furniture has a broader potentiality of selling in larger bulk quantities, while Student and Corporate Furniture will focus more on customization and personalization. Now that we had identified what it is that we want to sell on our webstore and who it is that we want to sell it to, we can now choose what type of hardware and software we will need. In order for our system to be operating at maximum efficiency, Eysie and Sehr Management Information System Consultants recommend a three tiered system because of existing system compatibilities. Tier one will consist of a web server layer, this layer will handle incoming internet requests, load balance requests, display html pages, route web requests to application server, and assemble data from an application server into web pages for clients. (George, 259) The second tier is the application server layer, this layer will authenticate users, process transactions, retrieve and send data to web server, and retrieve and send data to existing appli... ...dware is located off site, application is developed professionally and managed off site, and thus provides excellent emergency response. Some disadvantages of this option would be that it is inflexible, difficult to integrate with existing systems, and the resources are shared with other clients. (George, 258) The second option is to enterprise a resource planning system. The advantages of this would be stability and available documentation. Disadvantages of this option would be that it requires internal development, and would render documentation crucial during planning and development. (George, 258) The last thing that we need to address is how essential the commitment to this transition is. If this is going to be a successful transformation, the entire organization must exhibit unilateral support from the CEO throughout the entire organization. In conclusion, Eysie and Sehr Management Information System Consultants are willing to implement this ecommerce system for Pine Valley Furniture and are eager to do so as soon as possible. Works Cited: George, Hoffer, Valacich. Essentials of Systems Analysis and Design. 2nd edition, India. 2002 p. 149-258.

Innovation of Toyota in Hybrid

Toyota Innovation Lecturer: Dr. Barbara Igel Group members: Mr. Nguyen Hoang Hai Ms. Pham Thi Thu Hoai Ms. Kieu Phuong Ly 1 Toyota Introduction †¢ †¢ †¢ †¢ Established: 28 August 1937 Entrepreneur: Mr. Kiichiro Toyoda Total unit sold (up to July 2012): 200mil cars Company achievement: ?Product development motivation ?Extraordinary capability to manage large & global product development portfolio ?Launch more new vehicles than competitors ?Consistently deliver winners ?Continuous innovation and development 2 Prius XW10 the first Toyota’s hybrid was given to the market in December 1997 3 Prius XW10 he first Toyota’s hybrid was given to the market in December 1997 The car can run by both the gasoline and electricity 4 Differences Regular Car Hybrid Car Gasoline Gasoline & electricity CO2 emissions Less CO2 emissions Noise Silence powering High fuel consumption Low fuel consumption 5 Green Prius Make your gas last longer, Make your save last longer and M ake your dream comes true 6 The first generation An Architecture Innovation Product Prius XW10 7 What kind of innovation in nth Generations of Toyota Prius? Prius V Prius C Prius Plug -in Incremental innovation products 8 Competitive AdvantageProduct Development Strategy Process Goals 9 Product development strategy ? Conceiving & designing news cars ? Durability & Reliability ? Increase capital investment & shorter R&D cycles ? Reduce market risk 10 Product Development Process ? Fine balance between â€Å"shusa† program leader & â€Å"bucho† functional leader ? Parallel-path development, manage design and engineering trade-offs, and ensure flexibility (Apollo 11) ? Good relationship with suppliers 11 Product Development Process (†¦cont) ? Focus on collaboration and process ? Capturing and sharing the knowledge experience ? Monozukuri (â€Å"making products†) coming irectly from hitozukuri (â€Å"making people†) 12 Product Development Goals Focus on p roduct value which perceived by customers Product Value GAP Product Cost 13 PRIUS – THE LEADER OF HYBRID CARS PRIUS Toyota Time of Sales Models Sold units (at the end of september 2012) INSIGHT Honda 1997 1999 5 (with three generation) 2 (with two generation) 2,804,900 1,000,000 14 Solution adopted by the company Source: (Dehoff K. & Loehr J. , 2007, Innovation Ability) 15 Innovation Framework (Igel B. , 2012, Innovation & Techno entrepreneurship course) 16 Source: (Dehoff K. & Loehr J. , 2007, Innovation Ability) 17Reasons ? Thick history development culture ? Toyota Way: â€Å"people is the heart and soul† & â€Å"is the determinant of â€Å" best practice† approach† 18 Reasons ? â€Å"Shusa† : program manager ? â€Å"bucho†: functional manger ? Balancing authority ? Culture: the program success goal sharing broadly through the company 19 Reasons ? Forward & back up solution are developed simultaneously ? Ensure timeline schedule ? Culture : better product by making innovation everyday 20 Reasons ? Investing the innovative capacities to longterm suppliers ? Culture: collectivism, long-term thinking, uncertain avoidance – HIGH 21 Reasons Capturing & sharing knowledge and experience, making it available ? Management by means not by results ? Culture: better product by making innovation everyday 22 Reasons ? â€Å"making product† emanate from â€Å"making people† ? Culture: People is the heart & soul of Toyota; the life of employees together with the life of the company. 23 Reasons ? Strong ? Core values: ? Personal accountability ? Continuous improvement ? Collaboration ? Elimination of waste 24 Source: (Dehoff K. & Loehr J. , 2007, Innovation Ability) 25 Apply in Vietnam? ?No 26 Source: (Dehoff K. & Loehr J. , 2007, Innovation Ability) 27 28

To Tell or Not to Tell the Ethical Dilemma of the...

This article was downloaded by: [ ] On: 03 November 2011, At: 06:11 Publisher: Taylor Francis Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Accountability in Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/gacr20 To Tell or Not to Tell? The Ethical Dilemma of the Would-Be Whistleblower Janet Malek Ph.D. a a Department of Medical Humanities, Brody School of Medicine, East Carolina University, Greenville, North Carolina, USA Available online: 11 May 2010 To cite this article: Janet Malek Ph.D. (2010): To Tell or Not to Tell? The Ethical Dilemma of†¦show more content†¦This definition captures clearly the traditional use of the term in business contexts. In the context of research, however, the concept of whistleblowing seems to be understood a bit more broadly, so that it is not limited to public disclosures brought to an external entity. In what follows, I will use the term to refer to internal as well as external reporting to include situations in which a wrong-doer’s supervisor or department chair is notified of a researcher’s misconduct. This broader understanding may be an appropriate translation of the definition for the academic research context given the organizational and power structure differences between business and academia. The idea that there may be a moral requirement to report research misconduct is not novel. The Committee on Science, Engineering, and Public Policy has taken a position consis tent with the above claim, stating that â€Å"someone who has witnessed misconduct has an unmistakable obligation to act† (COSEPUP, 2009). A similar requirement can be inferred from articles 1 and 10 in the IEEE Code of Ethics, which state that its members agree â€Å"to disclose promptly factors that might endanger the public or the environment† and â€Å"to assist colleagues and co-workers in their professional development and to support them in following this code of ethics† (IEEE, 2006). InShow MoreRelatedThe Darkside of Whistleblowing1021 Words   |  5 PagesBeing a Whistleblower – Advantages and Disadvantages Whistleblowers are strong and brave people, for example employees, who recognize a wrong behavior of someone or their organization and want to do something against it in order to see that this behavior, or the wrong actions taken, are corrected – for them it is a matter of ethical responsibility, and they need to do it to feel comfortable in their skin. 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