P Phillips Part 3 wpc.docx

P Phillips Part 3 wpc.docx - Case Study Part III...

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Case Study Part III Anheuser-Busch LLC By Pamela Phillips Bus 500 Accounting for Managers Professor Shaffer
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To help establish where a company stands within in their market, the US government created the Standard Industrial Classification code system. This is a series of numbers that identify the primary market or business area that a company falls under. It was established with the primary function of collecting, presenting and analyzing the financial data of a company. It covers all economic activities (SICCODE.com). Each individual company has a primary SIC code. It places them within one of the 11 divisions. The company is then placed into one of the 83 2-digit major groups and then it is further defined by one of the 416 3-digit industry groups. Last step is placing it into one of the more specific 4- digit codes. Many companies are involved in more than one product, service or market and one may be nothing like another. In these cases their primary code is assigned based on the two characteristics, location and highest revenue. To understand the code one must know what each number and their placement in the code is identifying. The first two digits represent the major industry group. The third digit represents a more specific industry group and the fourth identifies the actual industry (SICCODE.com). The SIC code is useful to help identify different aspects of a company depending on the individual using it. Companies use the SIC code to identify their customers by the industry code. This can help a company when deciding which market to target based the market of their customer sales. A company can use he SIC code in order to identify and acknowledge their competitors in their market. Companies also use the SIC for tax purposes and to identify themselves on various forms and applications. The SIC code assures that a company is filed correctly with the SEC (The Securities and Exchange Commission). The SEC is divided into four divisions and each help to oversee securities transactions and all activities of the financial
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professionals, including trading, to ensure fraud and deception is not occurring (Rouse, January 2008). Anheuser-Busch is the leading US beer brewing distributor and manufacturer. Their primary SIC code is for their malt beverages (2082) (SICcode.com). The primary business type is manufacturing, which the company with the highest earning revenue located in Newark, NJ. By using these numbers one can look up the financial filings for the previous years. This data can be used to compare the company with their competitors in the same market area. In the case of
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