Rogers Aeronautics, LTD, is a British aeronautics subcontract
company that designs and manufactures electronic control systems
for commercial airlines. The vast majority of all commercial
aircraft are manufactured by Boeing in the U.S. and Airbus in
Europe; however, there is a relatively small group of companies
that manufacture narrow-body commercial jets. Assume for this
exercise that Rogers does contract work for the two major
manufacturers plus three companies in the second tier.
Because competition is intense in the industry, Rogers has always
operated on a fairly thin 20% gross profit margin; hence, it is
crucial that it manage non-manufacturing overhead costs effectively
in order to achieve an acceptable net profit margin. With declining
profit margins in recent years, Rogers Aeronautics' CEO, Len
Rogers, has become concerned that the cost of obtaining contracts
and maintaining relations with its five major customers may be
getting out of hand. You have been hired to conduct a customer
profitability analysis.
Rogers Aeronautics' non-manufacturing overhead consists of $2.5
million of general and administrative (G&A) expense,
(including, among other expenses, the CEO's salary and bonus and
the cost of operating the company's corporate jet) and selling and
customer support expenses of $3 million (including 5% sales
commissions and $1,050,000 of additional costs). The accounting
staff determined that the $1,050,000 of additional selling and
customer support expenses related to the following four activity
cost pools:
|
Activity |
Activity Cost Driver |
Cost per Unit of Activity |
|---|---|---|
| 1. Sales visits |
Number of visit days |
$800 |
| 2. Product adjustments |
Number of adjustments |
1,300 |
| 3. Phone and email contacts | Number of calls/contacts |
50 |
| 4. Promotion and entertainment events |
Number of events |
2,000 |
Financial and activity data on the five customers follows (Sales and Gross Profit data in millions):
| Quantity of Sales and Support Activity | ||||||
|---|---|---|---|---|---|---|
| Customer | Sales | Gross Profit | Activity 1 | Activity 2 | Activity 3 | Activity 4 |
| #1 | $17.00 | $3.40 | 106 | 23 | 220 | 82 |
| #2 | 12.00 | 2.40 | 130 | 36 | 354 | 66 |
| #3 | 3.00 | 0.60 | 52 | 10 | 180 | 74 |
| #4 | 4.00 | 0.80 | 34 | 6 | 138 | 18 |
| #5 | 3.00 | 0.60 | 16 | 5 | 104 | 10 |
| $39.00 | $7.80 | 338 | 80 | 996 | 250 | |
In addition to the above, the sales staff used the corporate jet at a cost of $800 per hour for trips to customers as follows:
| Customer #1 | 24 hours |
| Customer #2 | 36 hours |
| Customer #3 | 5 hours |
| Customer #4 | 0 hours |
| Customer #5 | 6 hours |
The total cost of operating the airplane is included in general and administrative expense; none is included in selling and customer support costs.
a. Prepare a customer profitability analysis for Rogers Aeronautics that shows the gross profits less all expenses that can reasonably be assigned to the five customers.
Notes:
| Customer #1 | Customer #2 | Customer #3 | Customer #4 | Customer #5 | |
|---|---|---|---|---|---|
| Sales | Answer | Answer | Answer | Answer | Answer |
| Cost of goods sold | Answer | Answer | Answer | Answer | Answer |
| Gross profit | Answer | Answer | Answer | Answer | Answer |
| Less expenses | |||||
| Sales commissions | Answer | Answer | Answer | Answer | Answer |
| Sales visits | Answer | Answer | Answer | Answer | Answer |
| Product adjustments | Answer | Answer | Answer | Answer | Answer |
| Phone and other remote contacts | Answer | Answer | Answer | Answer | Answer |
| Promotion and entertainment | Answer | Answer | Answer | Answer | Answer |
| Corporate jet expense | Answer | Answer | Answer | Answer | Answer |
| Customer profitability | Answer | Answer | Answer | Answer | Answer |
| Customer return on sales | Answer | Answer | Answer | Answer | Answer |
b. Now assuming that the remaining general and administrative
costs are assigned to the five customers based on relative sales
dollars, calculate net profit for each customer.
Enter figures as complete numbers (with all zeros). For example, 1
million is 1,000,000.
Do not use negative signs with any answers.
Do not round during calculation G&A expenses. Round final
G&A expenses to the nearest whole number.
Round return on sales to one decimal place. (Ex: 10.4%)
| Customer #1 | Customer #2 | Customer #3 | Customer #4 | Customer #5 | |
|---|---|---|---|---|---|
| Customer profitability | Answer | Answer | Answer | Answer | Answer |
| Less G & A expense | Answer | Answer | Answer | Answer | Answer |
| Net customer profitability | Answer | Answer | Answer | Answer | Answer |
| Net customer return on sales | Answer | Answer | Answer | Answer | Answer |
In: Accounting
Drive-through Service Time at McDonald’s When you are on the go and looking for a quick meal, where do you go? If you are like millions of people every day, you make a stop at McDonald’s. Known as “quick service restaurants” in the industry (not “fast food”), companies such as McDonald’s invest heavily to determine the most efficient and effective ways to provide fast, high quality service in all phases of their business. Drive-through operations play a vital role. It’s not surprising that attention is focused on the drive-through process. After all, over 60% of the individual restaurant revenues in the United States come from the drive-through operations. Yet understanding the process is more complex than just counting cars. Marla King, professor at the company’s international training center, Hamburger University, got her start 25 years ago working at a McDonald’s drive-through. She now coaches new restaurant owners and managers. “Our stated drive-through service time is 90 seconds or less. We train every manager and team member to understand that a quality customer experience at the drive-through depends on them,” says Marla. Some of the factors that affect a customers’ ability to complete their purchases with 90 seconds include restaurant staffing, equipment layout in the restaurant, training, and efficiency of the grill team, and frequency of customer arrivals to name a few. Customer order patterns also play a role. Some customers will just order drinks, while others seem to need enough food to feed an entire soccer team. And then there are the special orders. Obviously, there is plenty of room for variability here. Yet that doesn’t stop the company from using statistical techniques to better understand the drive-through action. In particular, McDonald’s utilizes numerical measures of the center (mean) and spread (variance) in the data and to help transform the data into useful information. In order for restaurant managers to achieve the goal in their own restaurants, they need training in proper restaurant and drive-through operations. Hamburger University, McDonald’s training center located near Chicago, Illinois, satisfies that need. In the mock-up restaurant service lab, managers go through a “before and after” training scenario. In the “before” scenario, they run the restaurant for thirty minutes as if they were back in their home restaurants. Managers in the training class are assigned to be crew, customers, drive-through cars, special needs guests (such as hearing impaired), or observers. Statistical data about the operations, revenues, and service times are collected and analyzed. Without the right training, the restaurant’s operation usually starts breaking down after 10-15 minutes. After debriefing and analyzing the data collected, the managers make suggestions for adjustments and head back to the service lab to try again. This time, the results usually come in well within standards. “When presented with the quantitative results, managers are pretty quick to make the connections between better operations, higher revenues, and happier customers,” Marla states. When managers return to their respective restaurants, the training results and techniques are shared with staff who are charged with implementing the ideas locally. The results of the training eventually are measured when McDonald’s conducts a restaurant operations improvement process study, or ROIP. The goal is simple: improved operations. When the ROIP review is completed, statistical analyses are performed and managers are given their results. Depending on the results, decisions might be made that require additional financial resources, building construction, staff training, or reconfiguring layouts. Yet one thing is clear: Statistics drive the decisions behind McDonald’s drive-through service operations.
|
Customer |
Customer waiting time |
Time of Day |
|
1 |
85 |
1 |
|
2 |
74 |
1 |
|
3 |
64 |
1 |
|
4 |
90 |
1 |
|
5 |
93 |
1 |
|
6 |
102 |
1 |
|
7 |
72 |
1 |
|
8 |
96 |
1 |
|
9 |
79 |
1 |
|
10 |
91 |
1 |
|
11 |
89 |
1 |
|
12 |
75 |
1 |
|
13 |
75 |
1 |
|
14 |
96 |
1 |
|
15 |
82 |
1 |
|
16 |
87 |
1 |
|
17 |
76 |
1 |
|
18 |
92 |
1 |
|
19 |
81 |
1 |
|
20 |
76 |
1 |
|
21 |
64 |
1 |
|
22 |
94 |
1 |
|
23 |
87 |
1 |
|
24 |
82 |
1 |
|
25 |
101 |
1 |
|
26 |
82 |
1 |
|
27 |
76 |
1 |
|
28 |
73 |
1 |
|
29 |
56 |
1 |
|
30 |
73 |
1 |
|
31 |
84 |
1 |
|
32 |
69 |
1 |
|
33 |
102 |
1 |
|
34 |
74 |
1 |
|
35 |
75 |
1 |
|
36 |
78 |
1 |
|
37 |
93 |
1 |
|
38 |
81 |
1 |
|
39 |
82 |
1 |
|
40 |
86 |
1 |
|
41 |
72 |
1 |
|
42 |
89 |
1 |
|
43 |
91 |
1 |
|
44 |
95 |
1 |
|
45 |
86 |
1 |
|
46 |
98 |
1 |
|
47 |
108 |
1 |
|
48 |
77 |
1 |
|
49 |
78 |
1 |
|
50 |
96 |
1 |
|
51 |
87 |
1 |
|
52 |
87 |
1 |
|
53 |
91 |
1 |
|
54 |
99 |
1 |
|
55 |
65 |
1 |
|
56 |
109 |
1 |
|
57 |
87 |
1 |
|
58 |
101 |
1 |
|
59 |
73 |
1 |
|
60 |
94 |
1 |
|
61 |
82 |
1 |
|
62 |
79 |
1 |
|
63 |
89 |
1 |
|
64 |
105 |
1 |
|
65 |
92 |
1 |
|
66 |
78 |
1 |
|
67 |
101 |
1 |
|
68 |
86 |
1 |
|
69 |
105 |
1 |
|
70 |
86 |
1 |
|
71 |
89 |
1 |
|
72 |
76 |
1 |
|
73 |
81 |
1 |
|
74 |
99 |
1 |
|
75 |
95 |
1 |
|
76 |
77 |
1 |
|
77 |
90 |
1 |
|
78 |
74 |
1 |
|
79 |
360 |
1 |
|
80 |
96 |
1 |
|
81 |
98 |
1 |
|
82 |
75 |
1 |
|
83 |
83 |
1 |
|
84 |
98 |
1 |
|
85 |
87 |
1 |
|
86 |
95 |
1 |
|
87 |
73 |
1 |
|
88 |
83 |
1 |
|
89 |
105 |
1 |
|
90 |
83 |
1 |
|
91 |
68 |
1 |
|
92 |
94 |
1 |
|
93 |
107 |
1 |
|
94 |
84 |
1 |
|
95 |
93 |
1 |
|
96 |
75 |
1 |
|
97 |
73 |
1 |
|
98 |
86 |
1 |
|
99 |
100 |
1 |
|
100 |
96 |
1 |
|
101 |
91 |
1 |
|
102 |
68 |
1 |
|
103 |
90 |
1 |
|
104 |
85 |
1 |
|
105 |
77 |
1 |
|
106 |
72 |
1 |
|
107 |
87 |
1 |
|
108 |
87 |
1 |
|
109 |
96 |
1 |
|
110 |
76 |
1 |
|
111 |
67 |
1 |
|
112 |
94 |
1 |
|
113 |
76 |
1 |
|
114 |
78 |
1 |
|
115 |
85 |
1 |
|
116 |
93 |
1 |
|
117 |
79 |
1 |
|
118 |
82 |
1 |
|
119 |
66 |
1 |
|
120 |
86 |
1 |
|
121 |
96 |
2 |
|
122 |
84 |
2 |
|
123 |
68 |
2 |
|
124 |
60 |
2 |
|
125 |
92 |
2 |
|
126 |
85 |
2 |
|
127 |
80 |
2 |
|
128 |
92 |
2 |
|
129 |
86 |
2 |
|
130 |
98 |
2 |
|
131 |
77 |
2 |
|
132 |
83 |
2 |
|
133 |
85 |
2 |
|
134 |
110 |
2 |
|
135 |
85 |
2 |
|
136 |
79 |
2 |
|
137 |
87 |
2 |
|
138 |
87 |
2 |
|
139 |
78 |
2 |
|
140 |
102 |
2 |
|
141 |
85 |
2 |
|
142 |
75 |
2 |
|
143 |
64 |
2 |
|
144 |
97 |
2 |
|
145 |
84 |
2 |
|
146 |
116 |
2 |
|
147 |
105 |
2 |
|
148 |
84 |
2 |
|
149 |
77 |
2 |
|
150 |
85 |
2 |
|
151 |
86 |
2 |
|
152 |
85 |
2 |
|
153 |
68 |
2 |
|
154 |
108 |
2 |
|
155 |
73 |
2 |
|
156 |
90 |
2 |
|
157 |
91 |
2 |
|
158 |
102 |
2 |
|
159 |
95 |
2 |
|
160 |
71 |
2 |
|
161 |
143 |
2 |
|
162 |
70 |
2 |
|
163 |
98 |
2 |
|
164 |
102 |
2 |
|
165 |
66 |
2 |
|
166 |
99 |
2 |
|
167 |
103 |
2 |
|
168 |
76 |
2 |
|
169 |
72 |
2 |
|
170 |
93 |
2 |
|
171 |
78 |
2 |
|
172 |
85 |
2 |
|
173 |
76 |
2 |
|
174 |
105 |
2 |
|
175 |
99 |
2 |
|
176 |
92 |
2 |
|
177 |
87 |
2 |
|
178 |
68 |
2 |
|
179 |
87 |
2 |
|
180 |
93 |
2 |
|
181 |
75 |
2 |
|
182 |
70 |
2 |
|
183 |
103 |
2 |
|
184 |
73 |
2 |
|
185 |
78 |
2 |
|
186 |
62 |
2 |
|
187 |
82 |
2 |
|
188 |
74 |
2 |
|
189 |
83 |
2 |
|
190 |
98 |
2 |
|
191 |
98 |
2 |
|
192 |
106 |
2 |
|
193 |
77 |
2 |
|
194 |
92 |
2 |
|
195 |
82 |
2 |
|
196 |
82 |
2 |
|
197 |
78 |
2 |
|
198 |
93 |
2 |
|
199 |
88 |
2 |
|
200 |
112 |
2 |
|
201 |
85 |
2 |
|
202 |
103 |
2 |
|
203 |
76 |
2 |
|
204 |
91 |
2 |
|
205 |
73 |
2 |
|
206 |
77 |
2 |
|
207 |
73 |
2 |
|
208 |
72 |
2 |
|
209 |
95 |
2 |
|
210 |
59 |
2 |
|
211 |
98 |
2 |
|
212 |
81 |
2 |
|
213 |
102 |
2 |
|
214 |
73 |
2 |
|
215 |
83 |
2 |
|
216 |
99 |
2 |
|
217 |
88 |
2 |
|
218 |
101 |
2 |
|
219 |
109 |
2 |
|
220 |
102 |
2 |
|
221 |
70 |
2 |
|
222 |
62 |
2 |
|
223 |
84 |
2 |
|
224 |
79 |
2 |
|
225 |
94 |
2 |
|
226 |
78 |
3 |
|
227 |
98 |
3 |
|
228 |
78 |
3 |
|
229 |
85 |
3 |
|
230 |
108 |
3 |
|
231 |
67 |
3 |
|
232 |
95 |
3 |
|
233 |
106 |
3 |
|
234 |
78 |
3 |
|
235 |
83 |
3 |
|
236 |
61 |
3 |
|
237 |
90 |
3 |
|
238 |
72 |
3 |
|
239 |
72 |
3 |
|
240 |
80 |
3 |
|
241 |
90 |
3 |
|
242 |
82 |
3 |
|
243 |
75 |
3 |
|
244 |
72 |
3 |
|
245 |
94 |
3 |
|
246 |
65 |
3 |
|
247 |
88 |
3 |
|
248 |
68 |
3 |
|
249 |
114 |
3 |
|
250 |
110 |
3 |
|
251 |
101 |
3 |
|
252 |
81 |
3 |
|
253 |
83 |
3 |
|
254 |
102 |
3 |
|
255 |
85 |
3 |
|
256 |
87 |
3 |
|
257 |
75 |
3 |
|
258 |
71 |
3 |
|
259 |
94 |
3 |
|
260 |
87 |
3 |
|
261 |
92 |
3 |
|
262 |
90 |
3 |
|
263 |
91 |
3 |
|
264 |
79 |
3 |
|
265 |
81 |
3 |
|
266 |
65 |
3 |
|
267 |
89 |
3 |
|
268 |
72 |
3 |
|
269 |
86 |
3 |
|
270 |
144 |
3 |
|
271 |
58 |
3 |
|
272 |
92 |
3 |
|
273 |
76 |
3 |
|
274 |
79 |
3 |
|
275 |
97 |
3 |
|
276 |
61 |
3 |
|
277 |
73 |
3 |
|
278 |
98 |
3 |
|
279 |
111 |
3 |
|
280 |
81 |
3 |
|
281 |
88 |
3 |
|
282 |
71 |
3 |
|
283 |
82 |
3 |
|
284 |
72 |
3 |
|
285 |
67 |
3 |
|
286 |
105 |
3 |
|
287 |
98 |
3 |
|
288 |
87 |
3 |
|
289 |
70 |
3 |
|
290 |
76 |
3 |
|
291 |
107 |
3 |
|
292 |
300 |
3 |
|
293 |
95 |
3 |
|
294 |
66 |
3 |
|
295 |
95 |
3 |
|
296 |
82 |
3 |
|
297 |
85 |
3 |
|
298 |
86 |
3 |
|
299 |
106 |
3 |
|
300 |
93 |
3 |
|
301 |
102 |
3 |
|
302 |
80 |
3 |
|
303 |
84 |
3 |
|
304 |
101 |
3 |
|
305 |
82 |
3 |
|
306 |
78 |
3 |
|
307 |
103 |
3 |
|
308 |
102 |
3 |
|
309 |
85 |
3 |
|
310 |
98 |
3 |
|
311 |
100 |
3 |
|
312 |
71 |
3 |
|
313 |
98 |
3 |
|
314 |
100 |
3 |
|
315 |
98 |
3 |
|
316 |
99 |
3 |
|
317 |
93 |
3 |
|
318 |
107 |
3 |
|
319 |
75 |
3 |
|
320 |
77 |
3 |
|
321 |
75 |
3 |
|
322 |
100 |
3 |
|
323 |
91 |
3 |
Questions:
1. After returning from the training session at Hamburger
University, a McDonald’s store owner
selected a random sample of 323 drive-through customers and
carefully measured the time it took
from when a customer entered the McDonald’s property until the
customer had received the order at
the drive-through window.
These data are provided, using Excel spreadsheet. Note that the
owner
selected some customers during the breakfast period, others during
lunch or dinner time. For the
overall sample, compute the key measures of the central tendency
and variation.
Based on these measures, what conclusion might the owner reach with
respect to how well his store is
doing in meeting the 90 second customer service goal? Support your
argument with appropriate
hypothesis testing.
2. Compute the key measures of central tendency and variation for
drive-through times broken down by
breakfast, lunch, and dinner time periods. Based on these
calculations, does it appear that the store is
doing better at one of these time periods than the others in
providing shorter drive-through waiting
times? Support your argument with appropriate hypothesis
testing.
3. Determine if there are any outliers in the sample data.
Discuss.
show the steps of doing it in excel when answering it please
In: Math
On this worksheet, make an XY scatter plot linked to the following data:
| X | Y |
| 92 | 22 |
| 87 | 23 |
| 102 | 23 |
| 80 | 25 |
| 91 | 27 |
| 100 | 20 |
| 95 | 21 |
| 109 | 19 |
| 77 | 28 |
| 100 | 221 |
| 98 | 25 |
| 89 | 27 |
| 97 | 23 |
| 93 | 22 |
| 89 | 27 |
| 91 | 22 |
| 97 | 21 |
| 105 | 21 |
| 88 | 22 |
| 83 | 24 |
| 86 | 27 |
| 89 | 26 |
| 79 | 30 |
| 88 | 22 |
| 94 | 24 |
| 18) | Add trendline, regression equation and r squared to the plot. | ||||||||||||||
| Add this title. ("Scatterplot of X and Y Data") | |||||||||||||||
| 19) | The scatterplot reveals a point outside the point pattern. Copy the data to a new location in the worksheet. You now have 2 sets of data. | ||||||||||||||
| Data that are more tha 1.5 IQR below Q1 or more than 1.5 IQR above Q3 are considered outliers and must be investigated. | |||||||||||||||
| It was determined that the outlying point resulted from data entry error. Remove the outlier in the copy of the data. | |||||||||||||||
|
Make a new scatterplot linked to the cleaned data without the outlier, and add title ("Scatterplot without Outlier,") trendline, and regression equation label |
|||||||||||||||
20)
| Compare the regression equations of the two plots. How did removal of the outlier affect the slope and R2? | |||||||||||
In: Statistics and Probability
Use R to do each of the following. Use R code instructions that are as general as possible, and also as efficient as possible. Use the Quick-R website for help on finding commands. 1. The following is a random sample of CT scores selected from 32 Miami students. 28, 27, 29, 27, 29, 31, 32, 30, 34, 30, 27, 25, 30, 32, 35, 32 23, 26, 27, 33, 33, 33, 31, 25, 28, 34, 30, 33, 28, 26, 30, 28 (a) Find the mean and standard deviation of this sample. Give the interpretation of the mean in the context. (b) Find the five numbers summary and provide the interpretation of the sample median in the context. (c) Draw the histogram of the data. What can you say about the distribution of the data. (d) Draw the Boxplot of the data. Is there any potential outlier? 2. The weekly amount spent for maintenance and repairs in a certain company has an approximately normal distribution, with a mean of $600 and a standard deviation of $40. If $700 is budgeted to cover repairs for next week, (a) what is the probability that the actual costs will exceed the budgeted amount? (b) how much should be budgeted weekly for maintenance and repairs to ensure that the probability that the budgeted amount will be exceeded in any given week is only 0.1?
In: Math
Consider a triangle ABC like the one below. Suppose that a = 63, b = 73, and c = 27. (The figure is not drawn to scale.) Solve the triangle.
Carry your intermediate computations to at least four decimal places, and round your answers to the nearest tenth.
If there is more than one solution, use the button labeled "or".

In: Math
You plan to retire in 27 years. You would like to maintain your current level of consumption which is $55,465 per year. You will need to have 25 years of consumption during your retirement. You can earn 4.89% per year (nominal terms) on your investments. In addition, you expect inflation to be 2.28% inflation per year, from now and through your retirement. How much do you have to invest each year, starting next year, for 17 years, in nominal terms to just cover your retirement needs?
In: Finance
Brille Corporation is issuing new common stock at a market price of $27. Dividends last year were 1.30 and are expected to grow at an annual rate of 11 percent forever. Flotation costs will be 8 percent of market price. What is Brille's cost of equity? Brille's cost of external common equity is? %
In: Finance
In: Finance
27-Diffusion is the movement of solutes in water. Diffusion spontaneously causes net movement of solute from ________ concentration, high energy, conditions into _______ concentration, low energy, conditions.
a. low; low
b. low; high
c. high; high
d. high; low
28-Catabolic pathways lead __________ cellular respiration and anabolic pathways lead _______ the citric acid cycle.
a. away from, toward
b. toward, toward
c. toward, away from
d. away from, away from
33-Cofactors that are required for enzyme function are ____________.
a. proteins
b. inorganic molecules
c. substrates
d. organic molecules
35-Photosynthesis would be impossible for eukaryotes without ____________.
a. secretory vesicles
b. chloroplasts
c. mitochondria
d. nuclei
37-The discovery of non-functional leg bones deep in the body of a whale is evidence that ___________.
a. we don’t understand whale anatomy
b. whales are evolving legs to walk on land
c. whale legs are shrinking from disuse
d. the ancestors of whales had legs and walked on land
41-Which process can produce carbon dioxide?
a. none of these reactions
b. cellular respiration and anaerobic fermentation
c. cellular respiration
d. anaerobic fermentation
e. photosynthesis
49-Which pair is most likely to form ionic bonds?
a. OH-, Cl-
b. Na+, H+
c. OH-, PO4-3
d. Na+, Cl-
54-The ____________produce(s) ______ and ATP.
a. Calvin cycle, water
b. Calvin cycle, NADPH
c. Light reactions, NADPH
d. Light reactions, carbon dioxide
55-What is the primary distinction between interphase and Mitotic phase?
a. Chromosomes are not visible in mitotic.
b. Chromosomes are not visible in interphase.
c. Nuclear envelope unassembled in mitotic cells
d. Mitotic spindle attaches to interphase chromosomes.
58-Who captures the sunlight energy that powers the biosphere?
a. Producers
b. Eukarya
c. Consumers
d. Decomposers
In: Biology
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In: Accounting