Chapter 10 Discussion Question

Chapter 10 Discussion Question - They have defined...

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Chapter 10 Discussion Question 43. Grocery stores generally tag all cut-up deli fruit with a date that represents the last day the fruit can be sold. Any fruit at the end of the last day is discarded. Why is it that many grocery stores do not let employees take the fruit home rather than discard it? Many companies such as grocery stores and restaurants have rules against employees taking food that is being thrown away. The idea is that by prohibiting that behavior the company insures that its assets will be handled properly and that authority will not be abused.
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Unformatted text preview: They have defined procedures where the food is logged and accounted for so that they can be assured their losses are accurate. The rationale behind this is to discourage employees from destroying or discarding merchandise that could otherwise be sold. Most importantly, most companies do not want to encourage employees taking home discarded or damaged food. By allowing this can lead to all sorts of "odd" incentives and companies don’t want to create incentives for employees not to sell the fruit....
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This note was uploaded on 10/22/2011 for the course ACCOUNTING ACC565 taught by Professor Lindachess during the Spring '10 term at Strayer.

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