Link: http://www.canada.com/story.html?id=809800
Summary:
As a result of the popularity and trends of credit cards, the global issue of credit card fraud has undesirably emerged. Currently, Canada’s financial institutions have slowly introduced a new design, incorporating a computer chip in each card. The traditional swipeable card with the old magnetic strip is gradually replacing the old form due to our technological advances. The change will prevent an anticipated loss of 300 million due to credit-card frauds. The idea is to insert it in a reading device throughout the transaction. This device will detect the computer chip, which will then be practically impossible to create a fraud for. The process of entering a PIN number is still required, but the signature part will not be needed. Enhancing the security of credit-cards, card holders will have a greater confidence carrying their credit cards out.
Connections:
Chapter 14 in our textbook mainly deals with cash control and banking, but it also has an interesting section on credit cards and their different applications. With respect to the credit card section of the textbook, it is known that the practical use of credit cards could introduce a “cashless society” for us. Similarly, the popularity of credit cards and its need to incorporate a new style of security feature, as described in the article, also leads us to this utopian idea. That is the reason why credit cards are to be reinforced with a fascinating security feature of computer chip to protect and ensure us for the continuous usage of our credit cards.
Personal Reflection:
With a keen desire for a credit card like most teenagers, I would always look forward for the legal age of 18. Having cards with your name carved on your card surely symbolizes maturity and independence. But after reading this article, this idea has slowly dissipated after reading this article. Furthermore, I now believe that payment with cash does seem to be a better idea in comparisons with credit cards. For one thing, the transaction fee and annual fees will be omitted with cash. For another, with a need for a 300 million funds to introduce this new security feature, credit card frauds must be indeed serious. Not wanting to be financially scammed or experiencing any sort of unfortunate events, I now choose to stick with the old style of cash payment rather those “dangerous credit cards for adults”.
- A. Tao
Block A
Friday, November 21, 2008
Wednesday, October 29, 2008
Chapter 12 Blog : Wholesaler’s Discounts
Link: http://www.canada.com/theprovince/news/story.html?id=93a45c97-122e-4917-9c38-1a0df3b2bed6
Summary:
As of today, common wholesalers, such as Costco, released a marketing technique of high discount rates. Realizing that customers will visit places where they could purchase goods for a cheap price, they initiate this technique to create more revenues, despite the high discount percentage. Because all, if not most, wholesales receive their goods from manufacturers, their price of their goods when purchased must be significantly lower than the regular prices they sell to us and other retailers. Through calculations, they choose to decrease their price to increase the number of sales, maximizing their profit, indeed. "Every time a wealthy person goes into Costco, there's something there that attracts their attention" - Taylor said.
Connections:
Relating to Chapter 12 of our textbook, the concept of cash discount has an entire section introducing two new accounts called “Discounts Allowed and Discounts Earned”. Due to the recent economical decline, Costco should increase their terms of sale. To put it differently, they should allow their customers, especially retailers to receive a greater discount within an extended period of time. With some common sense and critical thinking, their accounting department should increase their ‘Discounts Allowed’ account to further maximize its prosperity as a wholesaler. Understanding this concept, this is the reason why so many people choose to purchase their goods in large supplies from different wholesalers.
Personal Reflection:
Being a long-term fan of Costco, we visit there at least once a month to stock up and purchase anything that is “cheap.” In my opinion, the idea of discounts surely favours both customers and the company itself. In other words, the company receives its popularity from the public and retailers, while customers could get any desired goods for a low price, conveniently. On the down side, I extremely detest the idea of membership in Costco. Since we need to be a member to receive those amazing discounts, we must purchase its membership card on a yearly basis. In the company’s point of view, this can be an awesome marketing idea to keep their customers from leaving because this regulation indirectly forces customers to visit Costco often. But in my eyes, the cost of the membership card is a “rip-off” and the price we pay for those awesome discounts.
- A. Tao
Block A
Summary:
As of today, common wholesalers, such as Costco, released a marketing technique of high discount rates. Realizing that customers will visit places where they could purchase goods for a cheap price, they initiate this technique to create more revenues, despite the high discount percentage. Because all, if not most, wholesales receive their goods from manufacturers, their price of their goods when purchased must be significantly lower than the regular prices they sell to us and other retailers. Through calculations, they choose to decrease their price to increase the number of sales, maximizing their profit, indeed. "Every time a wealthy person goes into Costco, there's something there that attracts their attention" - Taylor said.
Connections:
Relating to Chapter 12 of our textbook, the concept of cash discount has an entire section introducing two new accounts called “Discounts Allowed and Discounts Earned”. Due to the recent economical decline, Costco should increase their terms of sale. To put it differently, they should allow their customers, especially retailers to receive a greater discount within an extended period of time. With some common sense and critical thinking, their accounting department should increase their ‘Discounts Allowed’ account to further maximize its prosperity as a wholesaler. Understanding this concept, this is the reason why so many people choose to purchase their goods in large supplies from different wholesalers.
Personal Reflection:
Being a long-term fan of Costco, we visit there at least once a month to stock up and purchase anything that is “cheap.” In my opinion, the idea of discounts surely favours both customers and the company itself. In other words, the company receives its popularity from the public and retailers, while customers could get any desired goods for a low price, conveniently. On the down side, I extremely detest the idea of membership in Costco. Since we need to be a member to receive those amazing discounts, we must purchase its membership card on a yearly basis. In the company’s point of view, this can be an awesome marketing idea to keep their customers from leaving because this regulation indirectly forces customers to visit Costco often. But in my eyes, the cost of the membership card is a “rip-off” and the price we pay for those awesome discounts.
- A. Tao
Block A
Wednesday, October 8, 2008
Chapter 11 Blog : Lululemon
Link: http://www.canada.com/saskatoonstarphoenix/news/business/story.html?id=1cd360a2-2b53-419f-a3bd-8aa6ec0df39e
Summary:
Currently, Lululemon Athletica is one of the most profitable cooperation in Canada. This well-known retailer emphasizes on yoga-inspired apparel for healthy living, which is commonly accepted by most females. As the prosperity of the corporation grows, it plans to add thirty-five stores in the next three to five years. This action will hopefully increase its popularity for its target market for females. As you all may know, the convenience for females to find their desired clothes wherever they go proves another type of popularity amongst the public. Lastly, this company is willing to spend most of its gross profit opening stores, proving its desire to attain popularity. As a result, its revenue has risen by 48%, proving a significant success in its profitability. “We create components for people to live longer, healthier, more fun lives” - Lululemon Athletica.
Connections:
As stated in the summary article, Lululemon Athletica has proven to be an extremely accepted brand throughout the last decade. In addition, one of the reasons why it makes such a large gross profit, other than its popularity, is its low cost of goods sold. Since it has a high revenue and a declining COGS, it further increases its gross profit, making it amazingly successful. In relation to our studies of Accounting 12, Lululemon is a very good example of a retailer, in fact. Furthermore, it purchases its clothes from their unique wholesaler and manufacturers and markets them to the public. Also, the concept of Cost of Goods Sold is a major portion of theory in chapter 11 and it is the high Cost of Goods Sold that gives Lululemon its thriving prosperity.
Personal Reflection:
As an average teenage male, Lululemon Athletica surely is not one of my desired stores. Hence, I do not understand its popularity and its significant growth in acceptance and popularity for females. As surveyed around my female classmates, the popularity of this brand comes from its marketed theme of comfort. Indeed, it is the technical clothing for yoga, dancing, running and other sweaty pursuits. Despite its expensive cost in my opinion, this appears to be commonly accepted everywhere. In school, many of my female fellow classmates and students possess clothes and handbags of this kind. In my environment, this brand currently marks our teenage definition of fashion and “in style”. Even though I personally do not favour anything from the cooperation, I must admit that it is doing an excellent job in attracting our modern female market.
- A.Tao
Block A
Summary:
Currently, Lululemon Athletica is one of the most profitable cooperation in Canada. This well-known retailer emphasizes on yoga-inspired apparel for healthy living, which is commonly accepted by most females. As the prosperity of the corporation grows, it plans to add thirty-five stores in the next three to five years. This action will hopefully increase its popularity for its target market for females. As you all may know, the convenience for females to find their desired clothes wherever they go proves another type of popularity amongst the public. Lastly, this company is willing to spend most of its gross profit opening stores, proving its desire to attain popularity. As a result, its revenue has risen by 48%, proving a significant success in its profitability. “We create components for people to live longer, healthier, more fun lives” - Lululemon Athletica.
Connections:
As stated in the summary article, Lululemon Athletica has proven to be an extremely accepted brand throughout the last decade. In addition, one of the reasons why it makes such a large gross profit, other than its popularity, is its low cost of goods sold. Since it has a high revenue and a declining COGS, it further increases its gross profit, making it amazingly successful. In relation to our studies of Accounting 12, Lululemon is a very good example of a retailer, in fact. Furthermore, it purchases its clothes from their unique wholesaler and manufacturers and markets them to the public. Also, the concept of Cost of Goods Sold is a major portion of theory in chapter 11 and it is the high Cost of Goods Sold that gives Lululemon its thriving prosperity.
Personal Reflection:
As an average teenage male, Lululemon Athletica surely is not one of my desired stores. Hence, I do not understand its popularity and its significant growth in acceptance and popularity for females. As surveyed around my female classmates, the popularity of this brand comes from its marketed theme of comfort. Indeed, it is the technical clothing for yoga, dancing, running and other sweaty pursuits. Despite its expensive cost in my opinion, this appears to be commonly accepted everywhere. In school, many of my female fellow classmates and students possess clothes and handbags of this kind. In my environment, this brand currently marks our teenage definition of fashion and “in style”. Even though I personally do not favour anything from the cooperation, I must admit that it is doing an excellent job in attracting our modern female market.
- A.Tao
Block A
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