Question
Jos Rodrguez, Vice President of Finance, and Victoria Figueroa, comptroller of the comapny Cafe Rico Company, are reviewing the company's financial ratios for 2014 and
Jos Rodrguez, Vice President of Finance, and Victoria Figueroa, comptroller of the comapny Cafe Rico Company, are reviewing the company's financial ratios for 2014 and 2015. The VP of Finance notes that the profit margin in relation to sales margin increased from 6% to 12%, a significant gain over the 2-year period. Rodrguez is in the process of issuing a press release that emphasizes the efficiency of Caf Rico in controlling costs. Victoria Figueroa knows that the difference in ratios is mainly due to a decision by the company to reduce the estimetes of the guarantee and bad debt expenses from 2015. Victoria Figueroa (controller) is not sure of the motives of the Finance supervisor; hesitates to propose to Rodrguez that the improvement of the company is not related to the efficiency in the control of costs. For reason of compliance, a press release is scheduled to be issued in a few days.
d. Give your opinion on the following quote: "Rodrguez, the vice president, is directly responsible for the publication in the media about economic results. Victoria has no real responsibility in this matter." please explain why she has responsiblity with deal on the matter.
Note: All answers must be based on the theoretical elements of the principle of "Full Disclosure".
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