¶ … Accounting Case Study
Legal Plan Services
What type of product is Legal Plan Services selling? Tangible or intangible? What type of benefits does the client receive for his membership?
The kind of products that Legal Plan Services is selling is legal representation for civil litigation. The way the company's approach works is to provide customers with access to some of the top law firms for purchasing a membership. The services are considered to be intangible because this is not something that can be physically held. The benefits that the client receives are the ability to consult with any one of the attorneys from affiliate firms for free. This involves select cases including: personal injury, tax, criminal and civil related issues. If the client goes beyond a certain amount of hours is when the membership will provide a 25% discount on the firm's hourly rate. ("Intangible")
What accounting concepts, objectives, and definitions should the company follow?
The company should follow more traditional accounting standards when reporting any kind of future sales and recording advanced commissions. In these situations, the sales representative is paid a commission in advance for sales they have closed. The problem is the monthly fee customers are charged has not been collected. This increases the risks, as someone may choose to no longer remain a client. When this happens, it means that there is a gap in the company's earnings and a loss from the advanced commissions paid to the sales force. If the company was able to change these objectives, their definition of profit margins will move away from the pro forma standard to generally accepted accounting principles (GAAP). ("Pro Forma," 2011)
When should Legal Plan Services recognize the various types of revenue? What are the rules of recognition...
CITEC- Driving Towards No Limits CITEC IS an organization formerly known as the Centre for Information Technology and Communications, and the primary function of this organization is geared towards the provision of information technology services. In 1988, it is known as a government entity, because most of its projects and activities concern the implementation of electronic communication and data program of government agencies. However, the company's early history dates back
GAAP is a set of specific common guidelines, provided by the institutions such as the Financial Accounting Standards Board, the American Institute of Certified Public Accountants and the Securities and Exchange Commission, about "acceptable accounting practices" These acceptable practices should not necessarily be regarded as a set of ground rules. In fact, it is a common denominator, useful when foreign firms, especially auditing companies, proceed to financial verifications. The GAAP provide
Outsourcing Case Study: Saving Money at the Magazine through Process and Supplier Selection Every business must contend with the decision of how many of its necessary processes and the products and materials utilized in these processes will be internally sourced and accomplished, and which processes and procurements will be outsourced to other companies (Monczka et al. 2008; Trent 2007). This magazine operation is no different, and with the sudden reduction
The other competitors of the company are Corporate Express, Inc.,IKON Office Solutions, Inc., Wal-Mart Stores, Inc. And United Stationers Inc. 3. Analysis of potential new entrants Threat of new entrants (Source: Datamonitor,2007) The threats of new entrants into new entrants in this industry are noted to be very string. This is because most of the supplies are in the form of commoditized products that never benefit greatly from the brand loyalty. This
While the superintendent may feel or even firmly believe that they have covered all of the bases on expenditures and other relevant issues in school budgeting, the failure to connect to other stakeholders throughout the district, who may or may not add to the data that the superintendent has prepared for presentation, is likely to result in some among those stakeholders feeling slighted or ignored and often lead to
The IG decided to apply a uniform approach to all investigation and audit planning so that all independent regional procedures and organization would mirror one another the same way they did anytime they participated in IG-assigned work. Organizational Problem #2 -- Regional Leadership Style and Organizational Culture The problem in Trenton was resolved by the direct intervention of the Region II RIG. Specifically, he identified the problem as being caused by
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