C & S Department Store is the second largest clothing and retail store chain in Jamaica. At present, they have 5 clothing and retail stores in all 14 parishes and are planning to expand to 7 stores per parish in the next 3 years. C & S Department Store has a centralized Human Resource Department located at its main office in Kingston. Unfortunately, although the HR processes are managed centrally, there are many HR tasks, policies and procedures that are controlled by the clothing and retail store managers or by the lead parish manger in each parish. Currently, the HR management processes are using Excel spreadsheet to compile reports from various parish Headquarters and stores. This task is being performed by a team of HR executives at its main office in Kingston.

Simone Coram is the Senior HR Manager of C & S Department Store and has discovered various administrative and HR issues with the clothing and retail store sites. Due to high focus on sales revenue and stores profitability, Retail Store Managers have difficulties in managing the stores in the areas of staff attendance, discipline and critical HR practices.

The fundamental emphasis and foundation of C & S Department Store has been centered on always maintaining the highest standards of customer service and for that reason they are in direct contact with customers at each and every Department Store. What sets C & S Department apart is a commitment to exceeding expectations making it one of their unique selling points. Giving excellent customer service is one of the main reasons why their customers choose C & S Department Store and why they keep coming back.

Imperatively, the entity’s strategy is purposed towards employing the ideal candidate for both their part-time and full-time sales associates with the capacity and proficiency to grow and hone their skills for prospective advanced position within the organization. Presently, the store managers for three (3) of C&S Department Store have made the announcement that they plan to retire within the next 18 to 24 month. These three managers have insisted that they will not remain in their position beyond this particular point.

A team of HR internal auditors has conducted a study and identified that there are irregularities in the staff attendance data both at the retail stores and regional offices. Sometimes many of the staff did not sign the attendance register or signed intermittently. During the HR audit, it was discovered that some staff signed the attendance register only at the end of the day. Further, sometimes staff signed the register and then left their post. There was also no mechanism to track the leave data of employees. Employees did not know their exact leave data. At the end of the year it was revealed that some employees have taken excess leave while some employees worked incessantly, creating frustration among staff.

There was also no standardization in the reports between head office, regional offices and the retail stores and this created discrepancies. HR provided a set of excel sheets and paper-based forms to help store managers maintain data. However, many store managers used and made unique formats of reports making it difficult to collate the reports. The data thus collated had to be verified over again and again, as there was a tendency for errors to emerge.

This discrepancy has caused a significant issue in salary. HR and attendance data were used to generate data for payroll. As there were many discrepancies in HR data and reports, this created several salary discrepancies and caused numerous issues among the employees, thus lowering employee satisfaction rate and affecting the employee morale.

Training and communication have become a major issue at C & S Department Store. As the company was growing at a fast pace, training employees on various HR procedures and policies was becoming increasingly difficult. Thus line managers took decisions based on their previous experience or personal insights and created unnecessary hassles that required HR intervention.

The staff turnover in two (2) key departments of Marketing and Accounts was running at 90%. Estimated cost of staff turnover - including overtime, loss of revenue, loss of skills, training time and management time to replace a staff member – is equivalent to approximately $3,000 per position thus costing the business around $500,000 per year.

Human Resource Management focuses on matching the needs of the business with the needs and development of employees and as such you are required to answer the following questions based on the scenario represented above.

Discuss five (5) possible reasons for the 90% staff turnover in the Marketing and Accounts Departments? As Miss Simone Coram, what would you recommend to minimize the high level of attrition in these departments?

C & S Department Store is the second largest clothing and retail store chain in Jamaica. At present, they have 5 clothing and retail stores in all 14 parishes and are planning to expand to 7 stores per parish in the next 3 years. C & S Department Store has a centralized Human Resource Department located at its main office in Kingston. Unfortunately, although the HR processes are managed centrally, there are many HR tasks, policies and procedures that are controlled by the clothing and retail store managers or by the lead parish manger in each parish. Currently, the HR management processes are using Excel spreadsheet to compile reports from various parish Headquarters and stores. This task is being performed by a team of HR executives at its main office in Kingston.

Simone Coram is the Senior HR Manager of C & S Department Store and has discovered various administrative and HR issues with the clothing and retail store sites. Due to high focus on sales revenue and stores profitability, Retail Store Managers have difficulties in managing the stores in the areas of staff attendance, discipline and critical HR practices.

The fundamental emphasis and foundation of C & S Department Store has been centered on always maintaining the highest standards of customer service and for that reason they are in direct contact with customers at each and every Department Store. What sets C & S Department apart is a commitment to exceeding expectations making it one of their unique selling points. Giving excellent customer service is one of the main reasons why their customers choose C & S Department Store and why they keep coming back.

Imperatively, the entity’s strategy is purposed towards employing the ideal candidate for both their part-time and full-time sales associates with the capacity and proficiency to grow and hone their skills for prospective advanced position within the organization. Presently, the store managers for three (3) of C&S Department Store have made the announcement that they plan to retire within the next 18 to 24 month. These three managers have insisted that they will not remain in their position beyond this particular point.

A team of HR internal auditors has conducted a study and identified that there are irregularities in the staff attendance data both at the retail stores and regional offices. Sometimes many of the staff did not sign the attendance register or signed intermittently. During the HR audit, it was discovered that some staff signed the attendance register only at the end of the day. Further, sometimes staff signed the register and then left their post. There was also no mechanism to track the leave data of employees. Employees did not know their exact leave data. At the end of the year it was revealed that some employees have taken excess leave while some employees worked incessantly, creating frustration among staff.

There was also no standardization in the reports between head office, regional offices and the retail stores and this created discrepancies. HR provided a set of excel sheets and paper-based forms to help store managers maintain data. However, many store managers used and made unique formats of reports making it difficult to collate the reports. The data thus collated had to be verified over again and again, as there was a tendency for errors to emerge.

This discrepancy has caused a significant issue in salary. HR and attendance data were used to generate data for payroll. As there were many discrepancies in HR data and reports, this created several salary discrepancies and caused numerous issues among the employees, thus lowering employee satisfaction rate and affecting the employee morale.

Training and communication have become a major issue at C & S Department Store. As the company was growing at a fast pace, training employees on various HR procedures and policies was becoming increasingly difficult. Thus line managers took decisions based on their previous experience or personal insights and created unnecessary hassles that required HR intervention.

The staff turnover in two (2) key departments of Marketing and Accounts was running at 90%. Estimated cost of staff turnover - including overtime, loss of revenue, loss of skills, training time and management time to replace a staff member – is equivalent to approximately $3,000 per position thus costing the business around $500,000 per year.

Human Resource Management focuses on matching the needs of the business with the needs and development of employees and as such you are required to answer the following questions based on the scenario represented above.

1. The staff complains that there is a need for training for managers at C&S Department Store. Do you agree/disagree? How would you determine whether training is needed? Discuss the training methods that you would utilize in training managers, if you would undertake this intervention.

1. How does Peter Drucker define profit?

2. Define the term “cash basis accounting”.

3. Define the “matching principle”

4. Describe the delivery company that purchased a truck in January and how it applies to the matching principle.

5. Explain why the Income Statement does not account for the inflows and outflows of cash.

6. Define the purpose of the Income Statement.

7. List three alternative names for the Income Statement

8. What time periods can the Income Statement cover?

9. Public companies must follow GAAP in compiling financial statements TRUE/FALSE

10. What is a Pro-forma Income Statement?

11. Sales and Revenue on the Income Statement mean the same thing TRUE/FALSE

12. Define the term “Cost of Sales”.

13. Why are footnotes considered to be an important part of the financial statements?

14. What is the “One Big Rule” when reading financial statements?

15. In its simplest form, when can a company recognize a sale?

16. In the example in the book, how did the software company manipulate revenue recognition?

17. What is “channel stuffing”?

18. “The most common source of accounting fraud has been and probably always will be _____________

19. Define “deferred revenue”.

20. “Above the line” on the Income Statement refers to what?

21. “Below the line on the Income Statement refers to what?

22. Define “Operating Expenses”

23. Operating expenses are often thought of and referred to as ________________

24. How did Waste Management Inc. use depreciation to manipulate earnings?

25. Why is depreciation and amortization considered a “non-cash expense”?

26. Give an example of a “one time charge”.

27. Expenses should be listed on the Income Statement to assist management in analyzing the business. TRUE/FALSE

28. Gross Profit varies by industry. TRUE/FALSE

29. Compare the gross profit of a grocery business to a jewelry store.

30. Define Operating Profit or EBIT

31. List three ways Operating Profit can measure how well or poorly a company is being managed

32. Define EBITDA

33. Why is EBITDA favored over EBIT by financial analysts?

34. Define “Net Profit”

35. List the three legitimate fixes to a low net Profit

36. What are the negative consequences of reducing Operating Expenses as a strategy to increase Net Profit?

37. How can “exchange rates” adversely affect Net Profit?
38. Can you answer all of the questions.

In a world of get-rich-quick schemes, few are mentioned more frequently than lawsuits. One of the reasons is the infamous McDonald’s coffee case (Liebeck v. McDonald’s Restaurants). This is what happened in 1992 in Albuquerque, New Mexico. Stella Liebeck, seventy-nine, was riding in a car driven by her grandson. They stopped at a McDonald’s drive-through, where she purchased a Styrofoam cup of coffee. Wanting to add cream and sugar, she squeezed the cup between her knees and pulled off the plastic lid. The entire thing spilled back into her lap. The searing liquid left her with extensive third-degree burns. Eight days of hospitalization—which included skin grafts—were required.

Initially, she sought $20,000 from McDonald’s, which was more or less the cost of her medical bills. McDonald’s refused. They went to court. There it came to light that about seven hundred claims had been made by consumers between 1982 and 1992 for similar incidents. This seems to indicate that McDonald’s knew—or at least should have known—that the hot coffee was a problem.

Most of the rest of the case turned around temperature questions. McDonald’s admitted that they served their coffee at 185 degrees, which will burn the mouth and throat and is about 50 degrees higher than typical homemade coffee. More importantly, coffee served at temperatures up to 155 degrees won’t cause burns, but the danger rises abruptly with each degree above that limit. So why did McDonald’s serve it so hot? Most customers, the company claimed, bought on the way to work or home and would drink it on arrival. The high temperature would keep it fresh until then. Unfortunately, internal documents showed that McDonald’s knew their customers intended to drink the coffee in the car immediately after purchase. Next, McDonald’s asserted that their customers wanted their coffee hot. The restaurant conceded, however, that customers were unaware of the serious burn danger and that no adequate warning of the threat’s severity was provided.

Finally, the jury awarded Liebeck $160,000 in compensatory damages and $2.7 million in punitive damages (about two days’ worth of McDonalds’ coffee sales). The judge, however, reduced the $2.7 million to $480,000. McDonald’s threatened to appeal, and the two sides eventually came to a private settlement agreement. [1]

In general terms, what does it mean to claim that an implicit contract arises around a transaction? How does that contract protect the consumer?

From the information provided, and from your own experience, what are the main terms of the implicit contract surrounding the purchase of coffee at a fast-food drive-through?

What does the restaurant owe the consumer?

What does the consumer owe the restaurant?

Suppose you can buy a new car for $15,000 and sell it for $6,000 after six years. Or, you can lease the car to $300 per month for three years and return it at the end of the three years. Assume that lease payments are made yearly instead of monthly (i.e., are $3,600 per year for each of the three years).

a.) If the interest rate, r, is 4 percent, should you lease or buy?

b.) What if the interest rate is 12 percent?

c.) At what interest rate would you be indifferent between buying and leasing the car?

Three recessive genes in dogs are linked on a chromosome. A dog heterozygous for all three recessive alleles is crossed with homozygous for all the recessive alleles in a three-point testcross.

(a) Determine the order of these genes on the chromosome and

(b) calculate the map distances between the genes.

The progeny of the testcross are:

r    T    W                 324

R    t   w                 319

R   t    W                880

r   T     w               887

R    T   W                2376

r    t     w                 2365

r   t     W                47

R    T     w                41

Total      7,239

Chapter 18

This module introduces us to managerial accounting. We discuss its purpose, concepts, and roles in helping managers gather and organize information for decisions. We also explain basic management principles.

Pick two of the three topics and discuss, please use proper grammar

-There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.

-Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

-What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.

You long a European call option on Info Systems Technology (IST) stock with a strike price of $25. The option will expire in exactly three months’ time. a. Briefly explain the difference between American and European options. b. What are the key determinants of option price? Briefly explain two of the key determinants: why they have a relationship with the option price. c. If the stock is trading at $35 in three months, what will be the payoff of the call option? d. If the stock is trading at $16 in three months, what will be the payoff of the call option? (2 marks

The six-month LIBOR rate observed three months ago was 4.85% with semi-annual compounding. Today's three- and nine-month LIBOR rates are 5.3% and 5.8% (continuously compounded), respectively.

(a) calculated that the forward LIBOR rate for the period between three and nine months with semi-annul compounding.

(b) A semi-annual pay interest rate swap where the fixed rate is 5% (with semi-annual compounding) has a remaining life of nine months. If the swap has a principal value of $15,000,000, what is the value of the swap to the party receiving a fixed rate of interest?

3. In a completely randomized design, 7 experimental units were used for each of the three levels of the factor.


Source of Variation Sum of Squares Degrees of Freedom Mean Square F
Between Treatment
Error(within treatment) 432076.5
Total 675643.3

a. Complete the ANOVA table.

b. Find the critical value at the 0.05 level of significance from the F table for testing whether the population means for the three levels of the factors are different.

c. Use the critical value approach and α = 0.05 to test whether the population means for the three levels of the factors are the same.