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The idea of trying to ship every possible order to customers before year end in order to increase revenue numbers
The idea of trying to ship every possible order to customers before year end in order to increase revenue numbers
is often done in business; it is commonly called "window dressing". On the other hand, there have been instances of companies convincing customers to accept orders they would normally not order, with the caveat that they can return them free of charge if they decide they don't want them.
How these two different methods of escalating sales differ in ethical terms? Do either or both violate accounting standards? What could the company do to alleviate the perceived need to get this kind of earnings management at year end?
