Economics
- Submitted by: mikeybking
- Views: 565
- Category: History: Asian
- Date Submitted: 12/13/2010 09:42 PM
- Pages: 2
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Ethics in business are critical to the longevity of the business, it would make no sense to provide inferior products or make extravagant claims about the furniture or the type of wood used to increase profits. Initially sales might be good for Guillermo but repeat customers will be limited and the possibility of returns of substandard furniture is a consideration. Ethics must be used by the accountants to accurately gage the fiscal health of a company. We have several bad examples such as Enron and WorldCom that hid their financial discrepancies to their ultimate demise.
After review of the Guillermo business model and budget statement it would be recommended that the Contribution Approach be used to make decisions using the income statement as the source to review the fixed and variable costs in addition to the profit margin. (Horngren, 2008) Based on those costs, Guillermo could affect changes to his business practices to recoup or limit his losses.
References
Ethics in business are critical to the longevity of the business, it would make no sense to provide inferior products or make extravagant claims about the furniture or the type of wood used to increase profits. Initially sales might be good for Guillermo but repeat customers will be limited and the possibility of returns of substandard furniture is a consideration. Ethics must be used by the accountants to accurately gage the fiscal health of a company. We have several bad examples such as Enron and WorldCom that hid their financial discrepancies to their ultimate demise.
After review of the Guillermo business model and budget statement it would be recommended that the Contribution Approach be used to make decisions using the income statement as the source to review the fixed and variable costs in addition to the profit margin. (Horngren, 2008) Based on those costs, Guillermo could affect changes to his business practices to recoup or limit his losses.
References
After review of the Guillermo business model and budget statement it would be recommended that the Contribution Approach be used to make decisions using the income statement as the source to review the fixed and variable costs in addition to the profit margin. (Horngren, 2008) Based on those costs, Guillermo could affect changes to his business practices to recoup or limit his losses.
References
Ethics in business are critical to the longevity of the business, it would make no sense to provide inferior products or make extravagant claims about the furniture or the type of wood used to increase profits. Initially sales might be good for Guillermo but repeat customers will be limited and the possibility of returns of substandard furniture is a consideration. Ethics must be used by the accountants to accurately gage the fiscal health of a company. We have several bad examples such as Enron and WorldCom that hid their financial discrepancies to their ultimate demise.
After review of the Guillermo business model and budget statement it would be recommended that the Contribution Approach be used to make decisions using the income statement as the source to review the fixed and variable costs in addition to the profit margin. (Horngren, 2008) Based on those costs, Guillermo could affect changes to his business practices to recoup or limit his losses.
References