Answer to Question #63375 in Accounting for Sam

Question

explain to voyager executives the importance of considering related expenses and discuss some of their controls as planning for its aggressive revenue expansion policy?

Answer 1

The application aggressive revenue recognition policy is the risk of loss of vigilance in relation to costs. To avoid this it is necessary to monitor key indicators such as gross margin, operating profit margin and total headcount per client. I consider it necessary to introduce quarterly financial planning in order to have a more realistic view of the economic results.