Question

Refer to Amazon.com’s annual report to answer the following questions about its budgeting process and its responsibility centers.
Required:
1. Review the description of business in Item 1, the risk factors in 1A, and the MD&A. Does Amazon.com face more or less than the typical level of uncertainty in forecasting future operations? Why? List and briefly explain five of the most important uncertainties Amazon.com faces in preparing its budgets.
2. One of the risk factors discussed relates to integration of acquisitions. Did Amazon acquire any businesses in 2015 (provide a list and description of each acquisition). How will these affect the budgeting process?

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Budgeting and Responsibility Accounting
Question 1
Amazon faces more than the typical level of uncertainty in forecasting future operations. This is primarily due to the nature of the company’s business. Amazon exclusively sells its products and services online and as such the company works with hundreds of thousands of vendors. This exposes it to uncertainty with regard to fulfillment....

This is only a preview of the solution. Please use the purchase button to see the entire solution

$30.00

or $1 if you
register a new account!

Assisting Tutor

Related Homework Solutions

Accounting Questions
Homework Solution
$60.00
Accounting
Budgeting
Marketing
Expenses
Susanna
Wu
Hypoallergenic
Cosmetics
GianAuto
Denver
Cover
Accounting Questions
Homework Solution
$77.00
Accounting
Inventory
Trial
Balance
Retained
Earnings
Count
Dividends
Interest
Income
Statement
Cash
Flow
Business Questions
Homework Solution
$43.00
Business
Financial Analyst
Accounting
Economy
Stores
Costs
Average Values
Capital Budget
Financial Metrics
Capital Management
Annual Sales
Marginal Tax
Payback Period
Bonds
Projects
Hunt Company: Pretax Financial Income
Homework Solution
$20.00
Accounting
Business
Economy
Financial Income
Financial Loss
Taxable Income
Taxable Loss
Allowance
Records
Statements
Tax Rates
Accounting Questions
Homework Solution
$33.00
Business
Accounting
Finance
Balance Sheets
Statements
Costs
Economy
Expenses
Revenues
Assets
Net Income
Debit
Insurance
Earned Fees
Liabilities
Merchandise
Get help from a qualified tutor
Live Chats