In 2015, FASB updated the revenue recognition standards. While most of the impact of the revised revenue standard will impact Intermediate Accounting coverage, some changes will also need to be made to update introductory financial accounting coverage. Using hypothetical examples featuring LL Bean, I have developed a set of classroom exercises (and solutions) that can […]
Continue readingWhat type of responsibility center would Mickey Thompson Performance Tires be for Cooper Tire & Rubber Company?
July 12, 2016 
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Mickey Thompson Performance Tires (https://www.mickeythompsontires.com) designs, develops, and distributes specialty tires for drag racing and other motor sports. The company was founded in 1963 and the company holds several patents related to tires. Cooper Tire & Rubber Company (CTB), the 12th largest tire company in the world, purchased Mickey Thompson Performance Tires in 2003. Mickey […]
Continue readingWhat internal controls might have prevented the $1.4 million kickback fraud scheme at Utz?
July 5, 2016 4 Comments
Utz Quality Foods Inc., a snack food company based in Hanover, Pennsylvania, was recently the victim of a $1.4 million fraud scheme. Utz’s former director of purchasing acting together with an Utz vendor allegedly ran a false invoice kickback scheme. During the several years over which the fraud allegedly occurred, Jonathan Haas was the owner […]
Continue readingWhat type of quality costs would the torn PUMA soccer jerseys be considered?
June 30, 2016 0 Comments
At a European Championship game for men’s soccer in June 2016, at least four of Switzerland’s red jerseys were torn during the game again the French team. Three of the Swiss jerseys torn around the numbers. The wardrobe malfunctions left the players with large parts of their backs exposed until they could get to the […]
Continue readingTechnology tip: How to shorten your long web links (URLs)
June 28, 2016 2 Comments
Do you ever want to give students a link for a document or website during class but the URL is too long to reasonably type? For example, let’s say I want to give students the link during class to a blog post I wrote. The original blog post URL is long – see https://accountingintheheadlines.com/2016/06/07/what-is-the-impact-on-snapchats-balance-sheet-from-its-latest-issuance-of-stock/. However, […]
Continue readingWould Yogurt Vi use job costing or process costing in calculating the cost of a customer’s cup of frozen yogurt and toppings?
June 23, 2016 0 Comments
Yogurt Vi (pronounced vee) is a frozen yogurt restaurant with several locations in Ohio. Customers will select the flavor of frozen yogurt they want and fill their cup from the self-serve machine with the desired amount of the frozen yogurt. Next the customer will proceed to the toppings bar, where they can select from a […]
Continue readingWhat internal controls might have prevented a Sea World guest relations supervisor from voiding tickets and pocketing more than $116,000?
June 21, 2016 0 Comments
A guest relations supervisor at SeaWorld’s Aquatica waterpark in Orlando, Lisa Olivardia, would void ticket sales and put the cash in white envelopes that she then put in her pocket. Investigators estimate that she stole between $55,000 and $75,000 each year from 2013 – 2015. Her voided transactions were about triple the rate of her […]
Continue readingWhat would the payback period be for a robotic arm used by McDonald’s for food preparation?
June 14, 2016 0 Comments
A variety of robots were featured at the 2016 National Restaurant Show that could be used for a variety of tasks in restaurants. These robots are being introduced at the same time that we are experiencing an on-going debate in the U.S. about the merits of a national minimum wage of $15 per hour for […]
Continue readingWhat is the impact on Snapchat’s balance sheet from its latest issuance of stock?
June 7, 2016 0 Comments
Snapchat is one of the fastest growing social media platforms with 16 to 24 year olds. Snapchat is privately-held, which means its stock cannot be purchased on a stock exchange. It may be getting ready for an IPO (initial public offering) sometime later in 2016 or 2017. In the meantime, Snapchat is obtaining funding for operations […]
Continue readingHow would the Pittsburgh Steelers classify the purchase of robots to use for tackle practice?
June 1, 2016 0 Comments
The Pittsburgh Steelers, a U.S. professional football team based in Pennsylvania, are experimenting with using a robot, called a Mobile Virtual Player (MVP), during practices so that players do not have to tackle each other and risk injury. Instead, the players can tackle the foam-padded robot that mimics the sensation of tackling a person. The MVP […]
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