Office Depot Corporation



Office Depot Corporation

Introduction

Office Depot Corporation is one of the biggest Corporations providing office supplies worldwide. Office Depot is one of the world's largest office chain stores, with more than 1,000 stores worldwide in 23 countries. Their distribution channels are varied including shops and mail deliveries. It also has a strong catalog, and it involves itself in various e-commerce transactions with general public and corporations.

Office Depot Inc. was founded in 1986 , in Lauderdale Lakes, Florida by three partners: Pat Sher, Stephen Dougherty, and Jack Kopkin. It currently operates under three brands: Office Depot, Viking and Guilbert. The European division in 2005, covered eleven countries with warehouses or logistic centers located in nine different countries. Over the past two years, Office Depot has doubled the size of the European operations through both its internal growth and acquisitions. The European headquarter is based in Venlo , Netherlands.

The company also leads in terms of environmental management and dissemination of performance data, making it the only retailer present in the top 10 greenest companies in U.S. Office Depot, which is especially committed to environmental protection, has a broad policy of Corporate Social Responsibility (CSR), based on commitment to the environment. The aim of the company is to help the community in which, it is providing its services. Some of the most recent initiatives framed within the Office Depot CSR the renewal of its fleet of over 100 vehicles, replacing hybrid engine cars, the annual planting of 200 trees in the Natural Park of Sierra Calderota.

It is evident that company is socially responsible and is committed towards its obligations. It also take care of other regulatory requirements like regulations related to financial/annual reports and accounting principles. In this paper, we will try to assess whether the company is able to implement Cost Accounting concepts or not.

Cost Accounting Concepts

Financial Accounting and Management Accounting are the two most important branches of accounting. Financial Accounting is primarily interested in the financial statements for external use by investors, creditors, financial analysts, government agencies and other stakeholders. Management accounting is a part of accounting that aims to capture, measure, register, assess, and control the internal circulation of securities of the company. It aims to provide information for decision making on production, training, internal cost price and the selling price policy.

Management Accounting analyzis not on ly the internal decisions of the company, but also the external analysis, keeping in view the competitive environment of the company.

Cost Accounting is a branch of management accounting, which is related to the accumulation and analysis of cost information for internal use by managers. It involves inventory valuation, planning, control and decision making. It synthesizes these accounts and records the costs of manufacturing, and commercial services (Sizer, 2000).

Cost accounting is an information system to predetermine, record, store, distribute, monitor, analyze, interpret and report the costs of production, distribution, administration and financing. It is related to the accumulation, analysis and interpretation of the costs of acquisition, production, distribution, ...