Identify a better way to decide when to ship goods

Assignment Help Finance Basics

Reference no: EM131815267

Question: Dobbs Wholesale Antiques makes all sales under terms of FOB shipping point. The company usually ships inventory to customers approximately one week after receiving the order. For orders received late in December, Kathy Dobbs, the owner, decides when to ship the goods. If profits are already at an acceptable level, Dobbs delays shipment until January. If profits for the current year are lagging behind expectations, Dobbs ships the goods during December.

Requirements: 1. Under Dobbs's FOB policy, when should the company record a sale?

2. Do you approve or disapprove of Dobbs's manner of deciding when to ship goods to customers and record the sales revenue? If you approve, give your reason. If you disapprove, identify a better way to decide when to ship goods. (There is no accounting rule against Dobbs's practice.)

Reference no: EM131815267

Questions Cloud

Neuroscientific study of organizational behavior : Organizational cognitive neuroscience is the neuroscientific study of organizational behavior, which outlines the relationship between our minds.

Prepare an appropriate performance report : The original budget for November was based on expected production of 35,000 units; Prepare an appropriate performance report for the manufacturing department

Many agree about keeping up with technology : Many agree about keeping up with technology. I believe if you are not tech-savvy and knowledgeable about all of the new trends, it becomes difficult

Manufacturing overhead incurred on account totaled : Manufacturing overhead incurred on account totaled, depreciation on factory machinery $8,320

Identify a better way to decide when to ship goods : Do you approve or disapprove of Dobbs's manner of deciding when to ship goods to customers and record the sales revenue? If you approve, give your reason.

What consequences came about due to the ethical : What consequences came about due to the ethical violations? Explain the ethical violations and what made it unethical?

What amount company receive at time the lease expires : Ron Stein Company recently signed a lease for a new office building, for a lease period of 12 years. What amount will the company receive at time lease expires

Determine the financial performance of the company : Rae Philippe was a warehouse manager for Atkins Oilfield Supply, a business that operated across eight Western states. She was an old pro and had known most.

Financial intermediary can make the borrower and lender : A financial intermediary can make the borrower and lender both better off if they:

User Account

All Pages