Question

Would you recommend that Skechers record BOBS sales and expenses as a separate division? Explain.

Answer 1

Step 1

1 of 2

In this exercise, we will determine if it is recommendable to have a separate division for BOBS shoes.

Step 2

2 of 2

Maintaining a separate division for BOBS sales and expenses is more precise. Primarily to account for the shoes donated for each sale of BOBS shoes. Also, to properly report the costs attributed to the sales and donation of each pair of shoes. This will help managers decide whether, in some cases, to continue the sale of shoes, adjust the production costs of the shoes, continue the program to donate shoes, or some other considerations.

Step-by-step explanation:

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