FIFO refers to a stock costing and control method where old inventory is removed first whereas LIFO is where the newer stock is removedfirst. PepsiCo
PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo w…
Full Answer
Does Coca Cola use LIFO or FIFO?
Coca Cola uses trademarks, goodwill, and franchise. The others mainly usegoodwill. FIFO refers to a stock costing and control method where old inventory is removed first whereas LIFO is where the newer stock is removedfirst. PepsiCo uses LIFO and FIFO.
What is the difference between LIFO and FIFO?
FIFO refers to a stock costing and control method where old inventory is removed first whereas LIFO is where the newer stock is removedfirst. PepsiCo uses LIFO and FIFO.
What products are made by PepsiCo?
PepsiCo products include zero calorie beverages such as Black Can Pepsi, aqua mineral water, Life Water, Master Brew Kombucha, Gold Brew and Quaker 3 Minutos. Nutritious and delicious foods produced by PepsiCo consist of sunbites GrainWaves, Doritos blaze, Off the Eaten Path, Overnight Oats, andLay’s.
What is the current ratio of PepsiCo?
The current ratio of PepsiCo is 1.51. PepsiCo and Coca Cola have rates above the industry average, unlike Keurig Dr Pepper. This state implies that they have a strong financial performance. Contrariwise, KDP has a poor performance.
What accounting method does Pepsi use?
Pepsi uses both LIFO and FIFO in determine its inventory (the lower of cost or the market) (Barth, Landsman, Lang, & Williams, 2012). IFRS are accounting standards issued by IASB. They are used in more than 110countries around the world.
How does Pepsi manage their inventory?
PepsiCo's inventory management emphasizes automation. Adequacy, scheduling, and cost minimization are the key objectives in this strategic area of operations management. PepsiCo does so through computerized monitoring of inventory. Inventory managers can access real-time data to help them make decisions.
Does Pepsi use GAAP?
We use these non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for certain employees.
How does PepsiCo recognize revenue?
PepsiCo. revenue recognition is based on the customer's written sales agreement with a right of no returns allowed, upon shipment or delivery.
What is PepsiCo supply chain strategy?
One of PepsiCo's growth strategies is to proactively adapt to emerging market trends for natural, healthy, and nutritious beverages. The strategy makes the company's supply chain more global and complex. It also presents new challenges and risks.
What is PepsiCo supply chain management?
PepsiCo's Supply Chain Management Strategies In addition to coordinating numerous suppliers, manufacturers, shippers, warehousing managers, and retailers, PepsiCo must also plan for potential disruptions due to seasonal sourcing requirements, weather and climate change, and shifts in demand.
Is PepsiCo Pepsi?
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi Cola to an immensely diversified range of food and beverage brands.
Who audits PepsiCo?
KPMGKPMG's current lead audit partner was selected in 2013 and KPMG has served as the Company's independent registered public accounting firm since 1990. The Audit Committee recognizes the importance of maintaining the independence of PepsiCo's auditor, both in fact and in appearance.
How many outstanding shares does PepsiCo have?
PepsiCo shares outstanding for the quarter ending March 31, 2022 were 1.391B, a 0.29% increase year-over-year. PepsiCo 2021 shares outstanding were 1.389B, a 0.22% decline from 2020. PepsiCo 2020 shares outstanding were 1.392B, a 1.07% decline from 2019.
What are the cash flow and free cash flow characteristics of PepsiCo?
PepsiCo annual free cash flow for 2021 was $7.157B, a 11.34% increase from 2020. PepsiCo annual free cash flow for 2020 was $6.428B, a 15.05% increase from 2019. PepsiCo annual free cash flow for 2019 was $5.587B, a 10.85% decline from 2018.
How does coke recognize revenue?
Revenue is recognized when performance obligations under the terms of the contracts with our customers are satisfied. Our performance obligation generally consists of the promise to sell concentrates, syrups or finished products to our bottling partners, wholesalers, distributors or retailers.
Who owns PepsiCo?
PepsiCoThe Pepsi Bottling Group / Parent organization
Search for company or ETF
PepsiCo, Inc. operates as a food and beverage company worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Lati... + VIEW MORE
Analysis
The following section summarizes insights on PepsiCo, Inc.'s Inventory Method:
How does PepsiCo's Inventory Method benchmark against competitors?
We've identified the following companies as similar to PepsiCo, Inc. because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.
Search for metric or datapoint
The inventory record keeping method used by the company (FIFO / LIFO).
Definition of Inventory Method
The inventory record keeping method used by the company (FIFO / LIFO).
Company Overview
Ratio Analysis
- Companies employ various financial ratios to evaluate their performance in the market. For this assignment; thequick ratio, current ratio, asset turnover, inventory turnover, accounts receivable turnover, and gross profit percentage ratios will be explored. The ratios will generate information about the financial health of the companies mentioned above within the beverage industry. The f…
Comparison of Accounting Methods
- Intangible assets comprise goodwill, trademarks, franchises, patents and copyrights(LumenCandela, 2018). Goodwill refers to a firm’s acquisition price less net assets. The others provide a legal provision for a company’s operations and ownership. Coca Cola uses trademarks, goodwill, and franchise. The others mainly usegoodwill. FIFO refers to a stock costi…
Final Recommendation
- PepsiCo has a strong financial performance based on liquidity ratios. Moreover, it also recorded better productivity based on the efficiency rations. The company has an excellent capability to generate revenue from its assets. It can also collect its receivable accounts well. Therefore, I would recommend PepsiCo to an investor. Coca Cola would be a...
References
- KDP Inc. (2018). FORM 10-K: Annual Report with a Comprehensive Overview of the Company.Morningstar Document Research. LumenCandela. (2018). Types of Intangible Assets. Retrieved from Lumen Learning: https://courses.lumenlearning.com/boundless-accounting/chapter/types-of-intangible-assets/ Mattison, B.L., Miller-Nobles, T.L. & Matsumura, …