Pepsico, Inc., And Dr. Pepper Snapple Group

1066 WordsJul 12, 20165 Pages
The manufacturing industries that will be analyzed are PepsiCo, Inc., and Dr. Pepper Snapple Group, Inc., both popular beverage companies, which form part of a large worldwide manufacturing sector. Revenue Recognition PepsiCo. revenue recognition is based on the customer’s written sales agreement with a right of no returns allowed, upon shipment or delivery. Dr. Pepper is once the product has been delivered, there is an agreement on a fixed price or when the price has been determined, evident that an agreement does exists, and “reasonable assurance of collectability”. Both companies do follow GAAP guideline, on when revenue should be recognized, which is when the company has actually met their part of the term agreement, which is after the product has been shipped or delivered. Property, Plant and Equipment PepsiCo. property, plant and equipment is recorded as historical cost. I consider this policy to be a bit outdated. Historical cost has no change in value, and it gives an inaccurate real value, this accounting procedure should not be used. Dr. Pepper as net of accumulated depreciation, calculated on straight-line basis. Once they sell or no longer used they remove the account of accumulated depreciation and any loss or gain will be recorded as operating expense. By using the straight-line method, this company will efficiently calculates the expected years that it will be used, and it is more consistent. Goodwill and Other Intangible Assets Dr. Pepper uses

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