Friday, February 21, 2020

Costco case study analysis Example | Topics and Well Written Essays - 250 words

Costco analysis - Case Study Example Because of the low prices, the company covered all the operating expenses and got low operating profits. The method focused more on impressing the customers and increased membership fees and in the financial income, the membership fees were higher than the company’s net income. For the above reasons, the company may fail in the long run (Arthur, p. 195). The problem of pricing can only be solved as explained below. As the membership fees caters for the operating expenses, the company should maintain the prices. Since the goods and services are of high quality and underpriced, it may highly affect the company. To avoid the consequences, the company should use penetration-pricing model to solve the problem. In the model, goods are lowly priced and then are gradually increased to match the market value of the products. By using the penetration-pricing model, they will maintain sales, customers and most importantly increase organization profitability (Arthur,

Wednesday, February 5, 2020

Contemporary Issues in Auditing Assignment Example | Topics and Well Written Essays - 3000 words

Contemporary Issues in Auditing - Assignment Example An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our that our audit will provide a reasonable basis for our opinion. Our audit procedures will include test of of documentary evidence supporting the transactions recorded in the transactions, tests of physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected customers, creditors, legal counsel, and banks. At the conclusion of our audit, we request certain written representations from you about the financial statements and other related matters. Our fees for this audit will be based on the time spent by various members of our audit staff at our regular rates, pus direct direct expenses. We will notify you immediately if any circumstances we encounter that could significantly affect our initial audit fee estimate f In order to us to work as efficiently as possible, it is understood that your accounting staff will provide us with the prior year's trial balance on or before January 15, 2008, and also with the schedules and and account analysis described on the separate attachment. It is standard operating procedure tha... ..................... February 20, 2008 Delivery of audit report......................... March 5, 2008 Our fees for this audit will be based on the time spent by various members of our audit staff at our regular rates, pus direct direct expenses. We will notify you immediately if any circumstances we encounter that could significantly affect our initial audit fee estimate f8,000. In order to us to work as efficiently as possible, it is understood that your accounting staff will provide us with the prior year's trial balance on or before January 15, 2008, and also with the schedules and and account analysis described on the separate attachment. If these arrangements re in accordance with your understanding, please sign this letter in the space provided and return to a copy to us at your earliest convenience. Very truly yours,----------------------------------- Carter and Corbin Chartered Accountants Accepted by: ____________________ Date Ethical Part cover 15% - The information that should be passed to the new auditors- clearance from previous auditor To the Stockholders, Rentokill Initial London November 28, 2007 Dear sir/maa'am: It is standard operating procedure that a new external auditor must contact your company's former external auditor. Thus, please send us recommendation letter addressed to your prior