Your Company Agrees to Collaborate on a Supply Chain Relationship

question 4

Essay

Your company agrees to collaborate on a supply chain relationship with another firm. During the collaboration, you discover by mistake that they have given you access to all their inventory and sales data.
You look at this and find that you can see the prices and quantities of products they are buying from all their other suppliers. This can give you an enormous advantage in competing for their business. What should you do?

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Definitions:

Accrual Method

A bookkeeping approach that registers revenues and costs as they are accrued or realized, irrespective of the timing of the associated cash transactions.

Taxable Income

The amount of income that is subject to income tax after deductions and exemptions.

Corporate Income Tax Rate

The percentage of corporate profits that are paid to the government as income tax.

Interperiod Tax Allocation

The accounting practice of distributing income taxes equally among the different periods affected by temporary differences.