Posted by & filed under Accounting Careers, Accounting Principles, Ethics.

Description: Are you a Canadian consumer who has ever felt tricked by a cereal box? Ken Bennett was looking for a high-protein cereal choice, so when he spotted Kellog’s Vector in the cereal aisle with its claims of 13 grams of protein, he dropped a box into his shopping cart. On closer examination at the breakfast table, however, Mr. Bennett learned less than 6 grams of protein come from Vector; the rest comes from the recommended serving of milk poured over his “meal replacement.” Apparently that wording “meal replacement” gives Vector the legal right to make its 13 gram claim. Bennett offered “I felt tricked. I felt duped.”

Date:  January 9, 2024



Discussion points:

1) Have you or your classmates ever “felt duped” by a packaging issue like this one?

2) If you were an official with Kellog’s, and you were asked to respond to Mr. Bennett’s concerns, what would you say?

3) Page 14-1 of Wiley’s Financial Accounting: Tools for Business Decision Making provides a vignette about the Sobeys grocery chain. How does this page characterize the margins in the grocery business?

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