Revenue recognition policy

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Reference no: EM13914273

A. What is ABC company recognition Policy?

B. What measurement problems does the company's revenue recognition policy create?

C. You are Alex Ethics, one of ABC's top-ranked salespeople. Your commission is based on your sales per the company's revenue recognition principle. It is near year end and if you can make one more significant sale you will increase your bonus by $35,000. You are having difficulty making this final sale to get your bonus. I'm Lee don't care, one of your best customers and also a close personal friend.

1- Set up a deal so you get your bonus and it does not cost me anything?

2- What are the factors which would encourage you to pull off this deal? Discourage you?

3- What should Alex's boss do if the nature of the deal is uncover?

4- What policy change would you suggest to ABC to eliminate this scenario?

Reference no: EM13914273

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