Cooperative Advertising Reserve : A Cooperative Advertisement Reserve Essay

In today’s society there are a plethora of ideas about advertisement. What would it take to meet societies want’s with the increase in advertising of new technology? In regards to four articles: “What’s Changed” by , Jane Hammerslough, “Urban Warfare” by, Kate MacArthur & Hilary Chura, “The Age of Reason” by, Kenneth Hein, “The Buzz on Buzz” by, Renee Dye. These four authors describe the many different angles that can be approached by advertisement. They have also shown some great aspects of the new uprising development of advertising technology in modern American society.

The auditing firm Coopers & Lybrand was accused of failing to perform a proper GAAS audit. One strategy the auditors could have performed was to follow the trail of revenue vs expenses. The auditor should have notice large sums ($10 million) of revenue going into one particular expense (Suppliers/Inventory). Considering Phar-Mor filed that they lost money in fiscal year 1984 and 1985 and they never cleared

The biggest challenge that they face as a company is they do not have the room the increase expenditure by such a vast amount. Currently there is $3,675,000 in promotional dollars allocated as follows; sales and administration expense (995,000), cooperative advertising programs with retailers (1,650,000), consumer advertising (562,000) and trade promotion (467,000). adding the $225,000 increase in consumer advertising will not allow the 5% of expected sales for total promo expenditures. John Bott, the vice president of sales disagreed with the budget allocation and noted that sales expenses and administration cost were projected to be $65,000 in 2008. This led him to believe that an additional sales representative would be needed to service company accounts because 50 were being added. Therefore he estimated this addition would cost at least $70,000 including salary and expenses in 2008. Bott also stated that “That's about $135,000 in additional sales expense that have to be added to our promotional budget for 2008”

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate (Louwers & Reynolds, 2007). We believe that the audit evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinions.

Generally accepted accounting principles (GAAP) allow companies wide latitude in the choice of accounting policies. After a firm chooses a set of accounting policies, current accounting rules permit changes from one alternative policy to another at the discretion of the management. Since reported accounting figures are widely used by a number of external parties, managers of firms have incentives to choose accounting policies in order to influence the behavior of these parties. A variety of managerial motives for

Initial reserves are posted upon completion of their investigation, but no later than 30 calendar days from the initial report of loss. Thereafter, claims are managed on a 90 day diary cycle, where a reserve analysis is required with each diary review. Reserve adjustments and settlement request of $50,000 or greater require an e-mail notification to Vice President of Claims, Bill Petro. This information outlines the details of the claim and comments on coverage, liability, damages,

GAAP states that revenues should be matched with expenses. By recording the revenues and expense at different times, current revenue and net income are overstated.

In the Hunter/Gatherer section of Omnivore’s Dilemma, Pollan talks about what it takes to accomplish the task of developing a meal on his own; consequently, the people of today’s society are so used to the abundance of food that they have no idea what all is involved in establishing a full meal. Americans take this great abundance of food for granted, which causes an increased craving for more. This is where the world of advertisement has been the strongest. One of the easiest ways to reach people is through their food; therefore, major food industries try to lure people in at all costs just to buy their products. The Fast food industry is the

The requirements according to the respective accounting standard related to disclosures of sources of estimation uncertainty and judgments in applying accounting policies

Trade promotions and cooperative advertising are part of a push strategy. Trade promotion is directed towards retailers and takes the form of catalogs, trade magazine advertisements, booklets for consumers, and displays. Using gallery stores will attract and serve their target customers, the 40- to 59-year-old homeowner with an annual household income over $100,000. Also, 78% of the survey respondents state that displaying furniture in individual room settings is somewhat important to very important. Half of the $225,000 deducted from cooperative advertising will be added to the trade promotions fund. Also, an amount of $12,000 is added to the trade promotions fund to assist their salespeople servicing the 50 new accounts. The trade promotions fund will have a total of $591,500. Cooperative advertising is usually spent on newspaper advertising in a retailer’s city. The reduced funds of cooperative advertising for BatesManor will diminish the amount of newspaper advertisements.

In September there was another offer of a $1.00 cash refund, with the proof of purchase for two 5 lb. boxes, which lead to an increase in gross sales of RBS, too. The $2 cash refund for the purchase of RBS plus four additional Household Division brands in January 2006 increased the gross sales even by more than 100% from $9.3mio to $20.6mio, a total net incremental contribution of $619,562. These coupons were advertised in women’s magazines, in a Sunday newspaper supplement, on the company website, and in point-of- purchase material the latter of which has a relatively high response rate of 2%. The event in June, that included a shrink wrapped twin pack of the 1 lb. boxes and a $1.00 cash refund inside the pack with proof of purchase from two 1 lb. boxes encouraged consumers to keep one box in the fridge and one in the bathroom, so that most of them bought two boxes of RBS which led to rising sales volumes Considering the significant increase in sales, RBS should focus on investing in print and online advertisement by increasing their budgets by 10% in this sector. To conclude and thinking long-term, budgets for consumer promotion should be raised by 10% to ensure that RBS continues selling high volumes. Due to missing information of the response rate of advertising in TV, RBS should maintain the budget in this sector constant.

“What is technology?” Have you ever marveled about the prominence of technology in our day-to-day lives? If you ever have, you have undoubtedly appreciated its complexity and its capability to make everyday responsibilities easier for yourself. For example, you probably admire how cellphones have completely eradicated the old-fashioned method of communicating, by sending mail to friends and relatives. Or how the invention of laptops and computers have brought up a new, more efficient method to stay in touch with the world, though the internet, rather than the previous method of newspapers. However, all these basic ideas of the importance of technology are ideas of what technology has done for you, and can be completely different for others. Have you ever wondered what technology has done for others, perhaps people not in the same circumstances as you, perhaps of a different age, religion, race, gender, or socio-economic status than you? Maybe you haven’t, but Microsoft, a leading technological superpower, certainly have wondered about this as seen in their “Empowering” ad.

GAAP is exceptionally useful because it attempts to regulate and normalize accounting definitions, assumptions, and methods. Because of generally accepted accounting principles one is able to presuppose that there is uniformity from year to year in the methods that are used to prepare a

Marketing practices in the contemporary western society have been a hotbed of ethical debate for a long time. The ethical analysis required for this case revolves around the issue of marketing, and more specifically relates to advertising. The overall ethical dilemma is whether or not I should, in the role of a senior marketing manager of a soft drink company, approve a sexually suggestive advertising campaign for non-alcoholic beer targeted to a teenage consumer market. As with other ethical dilemmas, there is no obvious correct solution to this predicament. However, in my opinion, I would

An important function of the accounting field is to provide external users of financial statements with assurance that the financial information being presented is both reliable and accurate. This basic function of accounting is so important that there is an entire field of experts, called auditors, dedicated to assuring its proper performance. Throughout history there have been many instances in which the basic equilibrium between an institution and current/potential investor has been threatened due to a lack of accountability and trust between the two parties. This issue has been the catalyst for many discussions regarding the proper procedures a firm should follow in order to provide