In the case study presented through the video posted, it is likely that uber could have actually been using an inaccurate method to calculate the income of New York City operators. Therefore, I recommend option A as the most valid solution for the case. Uber had a statutory arrangement with drivers that required it to apply its commission to drivers prior to the actual money payable for taxes, while Uber charged its commission on the total sum provided by customers (2). Taxes obtained from consumers are contractual dues that are obtained and charged on behalf of the state alone, as is basic business operation. Due to an error in the calculation, Uber paid the commission on the full sum collected from the customers due to the use of inaccurate formula for the necessary calculations (1). The uber business have a task of always ensuring that its systems are thoroughly checked and balanced to avoid such scenarios (2). In the digital platform, huge errors can arise form very small mistakes when keying in data entries and lead to very concurrent, recurring and unprecedented outcomes that would make it difficult to detect the initial point of error (2). Also, such errors can lead to very dire consequences that would otherwise be very unpleasant. The company would therefore need to appoint or employ personnel that should ensure proofreading of every step to see that the expected results are always achieved.
Sources
Uber Accounting Error (2021). Blackboard Learn. https://blackboard.strayer.edu/webapps/osv-kaltura-bb_bb60/LtiMashupPlayIframeWrapper?playUrl=/browseandembed/index/media/entryid/1_j1at793q/showDescription/false/showTitle/false/showTags/false/showDuration/false/showOwner/false/showUploadDate/false/playerSize/400x285/playerSkin/31110461/
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Tom .B. (2021). Uber Admits it Made an Accounting Error and Will Refund Nearly $50 Million to Drivers . Blackboard Learn. https://blackboard.strayer.edu/bbcswebdav/institution/ACC/100/1188_henryhand/ARTICLES/W2DQ_UberRefund.pdf
Discussion Response
Hello Diana,
I agree with your post. I believe that option A is the best option to implement in this case. What did you consider that helped you determine that option A was the best option? I my opinion, I believe that the company should set in place a system that reviews the required deductions for accuracy prior to finalizing payroll. In doing so, the company will always be sure that the calculations done on driver commissions are accurate and correct. Further, I agree that even the best of the best experts can still make minor mistakes that could cost the company a big deal. Therefore, setting up a system that reviews the required deductions for accuracy is a perfect solution.
