The Dangerous Morality of Managing Earnings

Operating Revenue I have seen over 20 years of practical experience that managers of all levels use different methods to manipulate quarterly short-term revenue. Most administrators have different views on ethical and unethical behavior in managing short term benefits and seem to tend to use suspicious practices to meet the number of companies. Based on Gibson's fourth quarter sales preferential treatment, accounting practices that allow customers to pay 120 consecutive days in order to increase sales in the fourth quarter will be confirmed from a "revenue management risk ethics" case study It was. Case study and returned results

Nonetheless, the moral consequences of managing revenue has a positive or negative impact on ethical and administrative behavior. According to my research, intention is the most important factor affecting decision making. You can decide which is moral in the future. Research by Nelson et al (2003) concludes that the use of revenue management is now a common practice. According to the survey, the company's day-to-day activities reduce the amount of prepaid expenses, amend depreciation, postpone invoices, and change the classification of sales transactions and income statements. The sample of 515 auditors and their list seems to be infinite. I can only think that I make a "small" or "careless" mistake everyday. These practices may bring much results in the future. The manager can do a lot to make a profit to the company. These benefits can produce positive and negative results. Stock prices, manager bonuses etc. are only one side of the equation.

In theory, there are two kinds of revenue management. They are income management with increased income and reduced income (Messod, 2001). a) Revenue Increase Revenue Management: As the name implies, revenue management with increased revenue will deliberately increase the company's net income so that investors can receive false signals on the company's financial condition and performance It is a process to make it. Make an investment company's decision (Messod, 2001). Because more debt and equity finance are obtained, management has incentives to strengthen profit management. b) Revenue reduction Revenue management: This revenue management process is achieved by reducing net income. Management is more involved in revenue reduction Revenue management is to obtain future rewards: By increasing expenditures to reduce this month's revenue, they will secure next month's profit