How does cost cutting at Best Buy impact its ROI? Original blog posting (June 28, 2014)

Best Buy struggling to thrive Competing against Amazon and others Best Buy is cutting its cost of goods sold through supply chain efficiencies

Question 1 On what financial statement does Cost of goods sold appear?

Question 2 Assuming everything else remains the same, how will cutting cost of goods sold impact Best Buy’s Return on Investment (ROI)? Explain your answer in terms of the impact on Sales Margin and Capital Turnover.

Question 3 What are other ways Best Buy could improve its ROI?

Question Recap On what financial statement does Cost of goods sold appear? Assuming everything else remains the same, how will cutting cost of goods sold impact Best Buy’s Return on Investment (ROI)? Explain your answer in terms of the impact on Sales Margin and Capital Turnover. What are other ways Best Buy could improve its ROI?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Related video resources can be found at http://www.youtube.com/user/accountingheadlines Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu