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Johnson Controls International plc Data for the year ended September 30, 2023: Item Amount Revenue $30,000,000,000 Cost of Goods Sold $20,000,000,000 Operating Expenses $6,000,000,000
Johnson Controls International plc
Data for the year ended September 30, 2023:
Item | Amount |
Revenue | $30,000,000,000 |
Cost of Goods Sold | $20,000,000,000 |
Operating Expenses | $6,000,000,000 |
Income Tax Expense | $2,000,000,000 |
Net Income | $2,000,000,000 |
Total Assets | $50,000,000,000 |
Total Liabilities | $30,000,000,000 |
Shareholders' Equity | $20,000,000,000 |
Managerial Accounting Process:
- Recording Costs:
- Johnson Controls records its cost of goods sold (COGS) at $20 billion, reflecting costs associated with manufacturing HVAC equipment and building automation systems.
- Operating expenses, including R&D, sales, and administrative costs, are recorded at $6 billion.
- Analyzing Costs:
- Conduct project-level profitability analysis to assess the financial performance of different building efficiency projects and product lines.
- Perform cost-volume-profit analysis to evaluate the impact of pricing strategies and production volumes on profitability.
- Reporting Costs:
- Present COGS in the income statement to illustrate the direct costs associated with manufacturing and distributing HVAC and building automation products.
- Detail operating expenses to provide transparency on costs incurred to support innovation, sales initiatives, and corporate functions.
- Provide cost allocation reports to show how costs are distributed across different business units, geographic regions, and customer segments.
Requirements:
- Calculate Johnson Controls' gross profit margin and discuss cost management strategies in the building efficiency and HVAC industry.
- Determine Johnson Controls' operating profit margin.
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