America Online Inc Case Study Essay

3. Was AOL’s policy to capitalize subscriber acquisition costs justified prior to 1995? Ans: AOL’s accounting policy was labeled aggressive and capitalized its subscriber acquisition costs when its archrival CompuServe didn’t. AOL’s biggest expenditure was the cost of attracting new subscribers and maximizing shareholders’ value: 1. Separate registration numbers and passwords were issued to customers. They cost more than $40 per new subscriber in 1994. 2. AOL aggressively marketed its online service both directly and indirectly. 3. To retain new subscribers and increase customer loyalty & satisfaction, AO The noteable accounting procedures followed by AOL were as follows: :a. AOL’s amortization period for subscriber acquisition costs was about 15 months, such aggressive accounting was attributed to the bundling & direct mail marketing practices b. During September 1995, the company modified the components of subscriber acquisition costs as incurred Analysis a. It is not advisable for AOL to capitalize the marketing costs because in 1990s Web was being established. This would definitely impact the sales. Instead of amortizing the Acquisition Costs for 15 months, if we treat it as single lumpsum cost, the Income statement shows a loss for the period. Capitalizing the expenditure for 2 years contained an implicit assumption for the coming two years. This was unlikely with the online industry as it had acquired most of its customers in the last 36 months, If AOL were to write off all capitalized subscriber acquisition costs the effect on the 1995 balance would be a $77,229,000 reduction in other assets and stockholders’ equity. If all the subscriber acquisition costs incurred in fiscal year 1995 were expensed in 1995, the effect on the income statement would be an increase in marketing expense of $50,837,000 and an increase in net loss of $50,837,000

Fresh Foods vs. Canned Foods

As we grow up we learn that we are suppose to eat two to three well balanced meals a day. We live in a society that has an immense variety of foods to choose from and we are responsible for what we eat. We decide what we are about to eat and how it will affect our bodies. Although fresh foods and canned foods are both highly eaten foods, they are really very different in flavor, health benefits, and cost. The most notable difference between these two kinds of foods is their flavor.Fresh oods have great flavor and taste because they keep all their natural conditions. If they are fresh, they havent been processed or mutated in some way. Canned foods, however, lack a lot of its flavor characteristics because there are some other chemical products added to the natural foods. It is logical that the fresh foods will have a greater taste and flavor when consumed Just because of the time in which they have been prepared. Comparing both types of foods we notice another difference.There is a h ealth factor that affects both of them. Canned foods lose some of the original fresh food nutrients when stored, and also it has to be tinned with many conservatives and chemical factors that prolong the shelf life and apparent freshness of the food but could also become toxic if consumed too often. On the other hand, fresh food is picked or made daily for a quality product. Many fruits and vegetables are picked and then set on shelves to be bought but have a shorter shelf life than canned foods because there are no harsh chemicals.Many bakeries bake their goods the day of for fresh taste instead of using the past days items that lack freshness. Yet another difference between these two types of foods is the cost. Fresh food is more expensive than canned food. Canned food is easier to find and easier to prepare. People who do not have time to sit down an prepare a fresh meal would rather grab something out of a can, warm it up, and eat it. Buying fresh food is a bit more costly but i n the long run it's healthier for you to buy fresh foods.Whether they're fresh fruits and vegetables, meat products, or baked goods, these items will aste better being made fresh than Just coming out of a can. Here are the main three differences between buying fresh foods and buying canned foods. As we can see it comes down to a personal choice, based on the time each person has, the money and the importance he/she gives to his/her nutrition and health. Therefore it is important that you consider your possibilities and choose the best type of foods for your convenience and lifestyle.

Question 1 Essay Example | Topics and Well Written Essays - 750 words

Question 1 - Essay Example The electrocution was caused by faulty wiring. Edward, also a guest at the party, thought it would be amusing to dance on the garage roof. As he could not reach the roof unaided, he decided to use a radiator under the window as a step. For some time, Alice had known that the radiator was loose. The radiator collapsed under Edward’s weight and he broke his leg in the fall. Question Advice Alice and Bert, who are both, being threatened with legal claims by Delia and Edward. A Glance at the Circumstance Based on the given situation, one could say that both, Bert (the landlord) and Alice (the tenant) had committed mistakes resulting to the injuries suffered by Delia and Edward. With regard to Bert, he was the one who hired Charlie’s Electrics which presumably did not fix well the broken light switch in Alice’s kitchen as Delia was electrocuted due to faulty wiring. Alice on the other hand, is somehow guilty of what happened to Edward. Edward actually suffered a broke n leg after he tried to go to the garage roof using the radiator under a window which Alice knew to be loose. If only Alice reported the loose radiator to Bert for him to fix it, the incident could have been avoided. As far as the circumstance is concerned, it seems that Bert and Alice have failed to perform their respective obligations as the owner and tenant of the place. Analysis According to Markesinis and Deakin (1999, p.69), the element of duty is associated to the following query: â€Å"does the law recognize liability in the cited situation?† The essence of this question is related to the duty attached to a landlord as far as the given situation is concerned. Under section 4 of the Defective Premises Act 1972, the landlord is obliged to maintain or repair the premises under tenancy. He or she owes a duty to take reasonable care in all circumstances to all persons who can be affected by the defects of the premises (Defective Premises Act 1972). This is to say then that Bert, as the owner of the first floor flat which Alice rented, has the obligation to make sure that nothing in the premises is defective that might cause any harm to any tenants. To take reasonable care would mean that Bert should have conducted an inspection in Alice’s area to check if there is something defective and to fix it immediately. Since Bert did not know about the loose radiator, it can be presumed that he did not exercise reasonable care to maintain the place. To note, it is not actually essential for the tenant to notify â€Å"the landlord of the want of repair† (Clements & Fairest, 1996, p.85). Nonetheless, Bert could not be made liable to Edward’s injury because the ultimate fault is attached to Alice. As the occupier of the place, Alice has the responsibility to take care of the premises. Taking care of the premises would mean that she should not do anything that could damage the property and if she does, she will be held liable to it. Section 1 of the Occupier’s Liability Act 1984 states that the occupier of a certain premises is obliged to take good care of the people who are in his or her premises especially if he or she knows of the possible danger his or her area might have. He or she has reasonable ground to believe that a person may go to the vicinity the danger and that the corresponding risk is one which necessitates some form of protection from the occupier. To note, Alice had known of the fact that

Social Performance of Organizations (Apple) Essay

Social Performance of Organizations (Apple) - Essay Example The nature of the company, like many other companies, is that it has a mother company and other regional subsidiaries. All the products are identical irrespective of which subsidiary produces them. The organization structure is simplified depending on Apple Inc.’s regional distribution. Below the Apple Operations International are Apple Operations Europe, distribution retail holding and sales international. The structures below the operations are themselves very large. Critical decision-making that affect the entire Apple Inc are made at the top and directives communicated to subsidiaries as policies. Some of the services that Apple offers its customers include an online store from which customers can find many updated software and applications free of charge. Such free services give customers the confidence to consume the company’s products with the knowledge that there is always service beyond purchase. In regard to the organizations external environment, competition and product incompatibility with related technology are factors that may affect its success. Before Google launched and sold out android software, Apple Inc gave Google such a stiff competition in the market. Apple’s iPhones dominated the US market in a manner that was unprecedented. Although Microsoft also had Windows Phones in the Market, Apple still led the pack. However, Google’s launch of Smart Phone application at affordable price to other competitors soon weakened Apple’s grip on the market. In fact, Google had intended it to be so. By the year 2012, Apple Struggled to catch up with Samsung. That is because whereas Apple’s products are relatively expensive, Samsung came up with a strategy, which involved making cheap quality phones that targeted the wider Asian and African market majorly. Based on Android technology, such cheap phones appealed to a wider audience. Despite the fact that Apple may not be the leader in smartphone

Russian revolution Essay Example | Topics and Well Written Essays - 1000 words

Russian revolution - Essay Example 'What Is Happening in Russia' was one of many documents written and published by Vladimir Lenin while he lived outside of Russia; these were distributed throughout his home country and eagerly awaited by the activists and Communist thinkers he had left behind. It was with this chapter that Lenin first publicly commented on the events that had occurred prior to publishing; specifically the worker protests that had occurred in Russia between the self-declared proletariat and the Czarist forces. The military forces triumphed, but Lenin and the rest of the world looked on the Russian activists as the instigators to a revolution that was only just beginning. Students of the Russian Revolution have always read reflective essays and texts concerning the events that led up to the Russian Revolution, but rarely do they have a glimpse of first-hand doctrine and commentary from that era, specifically in the years before the major conflicts. Not only do primary sources heighten the learning experience and give first-hand context to historical events, but to read the words and thoughts of someone as integral to the Russian Revolution as Vladimir Lenin gives an entirely new slant to basic course studies. Through this piece of writing, one can get a feel not only for the attitude of Russians at the time, but of foreign countrymen as well. At the time Lenin wrote this piece, he had been a victim of prejudice for his political views for so long and to such an extreme extent that he didn't feel safe living in Russia anymore. His writing was a way for him to stay connected with the Communists at home in Russia and to continue inspiring them to want change. Lenin believed that the masses in Russia were largely unaware of their poor position in the strict class society, but that with persuasion they were slowly coming to terms with it and looking for a way out. The worker protests that occurred in the early 20th century clearly gave Lenin hope and a small sense of pride in his countrymen for their efforts. He did believe, however, that the failure of these protests called for pause and reflection so that future revolts might be more successful. When 'What Is Happening in Russia' was published, it was before the major events of the Russian Revolution had yet occurred; because of the timing of this piece of writing, students will be able to cultivate an excellent knowledge of the atmosphere of the times. Lenin references the growing unrest among Russian workers towards their classist, Czarist system, as well as their growing willingness to become proactive in changing their own lives and the lives of millions of disenfranchised Russians across the entire country. He refers to the Communist activists as "taking their first tentative steps" towards change and equality, "defining their objectives" in protest. Because of his position outside the country at the time, Lenin makes several references to international misunderstandings of the Russian state of mind, explaining that although foreign newspapers were mixing up their terms in reference to Russia and its protests, the basic opinion of the international community was that these outbursts of the public were the beginning of something bigger. He

Evaluation of General Plan Essay Example | Topics and Well Written Essays - 1000 words

Evaluation of General Plan - Essay Example Every country and city should adopt this practice to steer its efforts in a developing direction. General plan has various components that need to be given a balanced focus and allocation of resources in order of priorities. These components mainly include land use, air pollution, preservation of resources, noise pollution, housing, public recreational activities, health and safety measures and transportation infrastructure. Attention given to each element largely depends upon the population growth, trends and projections which guide the extent of need for development of some elements to cater the growing population. The dynamics of general plan aid the government to be prepared for upcoming changes and expected as well as unpredictable circumstances in future. City of Los Angeles has a diversified habitat comprising people of various different races, languages and cultures and various natural aspects such as mountains, lakes, swamps and coastal areas. The city has a dedicated department of city planning whose primary focus lies on preparing, developing and implementing the city’s general plan which is reviewed and approved by City Planning Commission and adopted by City Council. We study in detail the transportation component of general plan framework as provided by the city of Los Angeles ( Port of Los Angeles). The city government has developed a detailed framework for its element of transportation and has in place a professional team and high quality policies for implementation of these elements. It builds over this component on need basis through the projected population growth rate and estimates the funding required improving transportation arrangements. Their primary aim is to facilitate the mobility of everyday activities in commercial areas, capital and industrial areas and necessity traveling. This in turn requires traffic management tactics, improved roads, new bridges, tunnels and other infrastructure

Supply Chain Management Essay Example | Topics and Well Written Essays - 500 words - 1

Supply Chain Management - Essay Example d). Pepsi, the drinkable liquid is generally contained in a bottle and it has only two components. The main ingredients of Pepsi are carbonated water, sugar, emulsions, citric acid, additives, and flavourings; and glass, silica, and aluminium are the major raw materials used for bottles (Bhagat et al, n.d.). In the supply chain of Pepsi, the product passes through five different phases before reaching it in the hands of ultimate consumers. Firstly, the required raw materials are collected from the supplier and it is transferred to the plant. In the plant, the processing of raw materials takes place and the finished products are sent to wholesale distributors’ warehouses. The wholesaler distributes Pepsi to retailers on order placements; distribution vehicles play an important role in this phase. Ultimately, the product reaches the hands of original consumers and the whole process is regarded as the supply chain operations. Since this product largely employs water resources for the production, it adversely affects the environment. This negative feature in turn notably impinges on Pepsi’s supply chain management as it is a major societal issue. Similarly, large number of links in supply chain makes the product expensive to customers.