Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 47

In an effort to make the company more competitive, Fast- Guard, Inc., incurred significant expenses related to a reduction in the number of employees, consolidation of offices and facilities, and disposition of assets that are no longer productive. Explain how these costs should be presented in the financial statements of the company, and describe how an investor should view these costs in predicting future earnings of the company.