eActivity
· Use the Internet to research recent articles on the channel stuffing practice used by a company to increase income by sending suppliers in the distribution channel more inventory than they are able to sell. Be prepared to discuss.
ACC DISCUSSION 1
"Channel Stuffing" Please respond to the following:
· From the e-Activity, evaluate the requirements under GAAP related to channel stuffing practices on financial statements. Recommend key additional requirements, and justify those requirements.
· From the e-Activity, examine the impact of channel stuffing on financial reports used for internal decision making. Create a scenario involving a faulty internal decision based on channel stuffing.
ACC DISCUSSION 2
"Carton Medical Devices" Please respond to the following:
· From the case study, determine how the standard cost system in Carton Medical Devices can be used for product costing and inventory valuation. Indicate the efficiencies that can be gained from the system.
· Examine the use of Carton‘s standard cost system in product costing for cost analysis, and indicate the intelligence that management is likely to gain using this approach.