ETHICS AND REVENUE RECOGNITION

ETHICS AND REVENUE RECOGNITION

Alan Dunlap is CEO of a large appliance wholesaler. Alan is under pressure from Wall Street Analysts to meet his aggressive sales revenue growth projections. Unfortunately, near the end of the year he realizes that sales must dramatically improve if his projections are going to be met. To accomplish this objective he orders his sales force to contact their largest customers and offer them price discounts if they buy by the end of the year. Mr. Dunlap also offered to deliver the merchandise to a third-party warehouse with whom the customers could arrange delivery when the merchandise was needed.
ETHICS AND REVENUE RECOGNITION