Sub issue and recommendation for Biovail Case Essay Example

Sub issue and recommendation for Biovail Case Essay Example Sub issue and recommendation for Biovail Case Essay Sub issue and recommendation for Biovail Case Essay Sub issue: Other than having fraud conducting of revenue recognition, Biovail Corporation also has overestimated the amount of Wellbutrin XL on the truck. The company estimated that revenue associated with this shipment was in the range of $10 million and $20 million and confirmed that the manufacturing cost value of this shipment had been fully insured. The trooper estimated that the truck was about one-quarter full. After the investigation done, the analyst stated if there had been $20 million worth of Wellbutrin XL pills on the truck, it would have been full or nearly full. In addition, Biovail Corporation also has expired of Legacy product patents. The Legacy product portfolio included the well-known brands Cardizem CD, Ativan, Vasotec, Vaseretic and Isordil. These products were not actively promoted by Biovail and represented non-core assets for which patent protection had expired. However, sales of Cardizem CD have represented 40% of product sales at Biovail. Biovail Corporation also having problem in report the revenue because it based on channel stuffing. Channel stuffing is the action sends the distributor more product than they are able to sell in order to increase earning. Distributors hold the excessive amount of product. The conflict of the self-interest is the one of the issue that will be arise as the CEO of the company has the share in Biovail Corporation. Recommendation Have the code of ethics. Biovail Corporation should have the code of ethics in it management. In calculating revenue, FOB structure of the product should have been understood in the deep. The overestimated of the product quantity should be avoided because it can lead to bad reputation of Biovail Corporation. The overestimated of quantity of product in the truck that are involved in accident has make the public look at the Biovail Corporation as the firm that are not have the ability in having efficiency management. Other than that, it will give bad reputation because public seen Biovail lied as to get the insurance claim. Biovail Corporation also should follow conservatism principle in record the loss and revenue in uncertainty situation. Have the code of ethics to understand each product term and ethics according to the  accounting principles. This ethics code can save the company from doing the fraud. Renew the legacy product patent Biovail Corporation should renew the legacy product patent. From the case, these products were not actively promoted by Biovail Corporation and represented non-core assets for which patent protection had expired. This situation will lead the competitor to compete with Biovail. Biovail should be caution because one of the legacy products, Cardizem CD has representing 40% of product sale in it firm. So, renew the patent will maintain this percentage of product sale. Having the Good Corporate Governance Structure Biovail Corporation should investigate the background of the Corporate Governance before hire. It must be make sure that they are independent and free from bias.

12 Terms for Tests and Related Expressions

12 Terms for Tests and Related Expressions 12 Terms for Tests and Related Expressions 12 Terms for Tests and Related Expressions By Mark Nichol What’s the difference between an acid test and a litmus test? Can you test-drive something that can’t be driven, or test-fire something that can’t be fired? Here are literal and figurative definitions of some phrases that include the word test. 1. Acid test: a chemical test used to distinguish gold from other metals; by analogy, a very important or intense test of character or performance 2. Alpha test: a test of an early version of a company’s software or hardware by company employees or by consultants 3. Beta test: a test of a beta, or revised, version of a company’s software or hardware by people outside the company (often, a sample of prospective customers) before it is finalized and generally released for sale 4. Litmus test: a test for acidity using litmus, an organic dye absorbed onto a medium called litmus paper that changes color when exposed to chemicals; by analogy, a test in which one component or factor determines the outcome, or the posing of a question whose answer indicates the respondent’s suitability, or lack thereof, for a position, or an action whose result determines whether one or more other actions should be taken 5. Test ban: a self-imposed prohibition of nuclear weapons testing by mutual agreement between two or more countries 6. Test bed: a vehicle used to test equipment; by analogy, any thing, place, or method for testing a product or an idea 7. Test board: a sample piece of cardboard or other packing material for testing strength or resistance to damage, or a console for testing electronics (also, an organization that administers academic examinations) 8. Test case: a legal or similar case pursued with the intent of establishing a precedent for similar decisions; by analogy, an action undertaken to determine the likely outcome for such actions 9. Test check: auditing of sample data (also, as a verb, test-check, to audit sample data) 10. Test drive: use of a vehicle to evaluate its performance; by analogy, evaluation of any device or of implementation of a policy or procedure (also, as a verb, test-drive, to test a vehicle or other device, or a policy or procedure) 11. Test fire: testing of a weapon to evaluate its performance (also called a firing test); by analogy, to introduce or launch a policy or product to determine how it will be received (as a verb, test-fire, to test a weapon or launch a policy or product) 12. Test market: a region or group selected for limited release of a product (also, as a verb, test-market, to make a product available on a limited basis to evaluate its appeal) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:Cost-Effective vs. Cost-EfficientEnglish Grammar 101: Verb Mood20 Slang Terms for Law Enforcement Personnel