Asma is a junior management accountant at Flower Cloth Ltd. Asma is given the task of compiling a cost benefit analysis report on whether the company should purchase an expensive new machine from Radi Ltd where her brother is the new sales manager. Asma did not tell anyone in Flower Cloth about her brother' new job. In preparing her report, Asma overstates the qualitative benefits and understates the cost associated with this new machine to help her brother make his first sales as the new sales manager. Required: Discuss why and how Asma has deviated from the standards of ethical conduct.
Q: An accounting intern for a local CPA firm was reviewing the financial statements of a client in the…
A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For…
A: Activity based costing (ABC) is the costing method which allocates the overheads on the basis of…
Q: Wharton Associates is a recently formed law partnership. Denise Peyton, the managing partner of…
A: There are several types of costs that are used by the firm (Bradley Associates) like indirect cost…
Q: Shanice works in finance for a small manufacturing company and is working on next year’s budget. She…
A: Introduction: Financial planning is one of the most critical responsibilities. All procedures…
Q: Donald Waddell got a job at the Boyce Thompson Institute for Plant Research. Waddell did not have an…
A: The corporation had implemented a whistle-blowing policy formally be appointing an authorized…
Q: The operations vice president of Security Home Bank has been interested in investigating the…
A: Solution: First stage allocation of cost to activity cost pools Particulars Total Cost Opening…
Q: Do you agree with Timmy that his strategy is wonderful? Why or why not?
A: Yes, I agree with Timmy’s strategy. She can show that expense as her own business expenses as she…
Q: Joan owns a printshop and has a difficult time fighting out what to bid on jobs. She knows how to…
A: Job order costing is a process related to aggregating and assigning cost of manufacturing of an…
Q: Recently, the owner of KFC Franchise decided to change how she compensated her top manager. Last…
A: Fixed salary = 50,000 where profit was 110,000 New salary is 40,000 + 5% of profit where profit is…
Q: Margaret is the manager of a medium-size company. A few years ago, Margaret persuaded the owner to…
A: The doubtful debt is considered as an expense and dedi=ucted from the revenues in order to calculate…
Q: her, she decided to start a business which specialises in selling handbags. Ms. Rennet must pay VAT…
A: The amount of VAT paid by the user is dependent on the cost of the product, less any costs of…
Q: Ellie Ice-cream’s owner is disturbed by the poor profit performance of his ice cream counter. He has…
A: Relevant cost are the avoidable costs that can be avoided with the elimination of some product usage…
Q: an runs a successful hairdressing salon in Riccarton. The type of costs incurred in providing…
A: Direct costs are the expenses directly incurred in connection with the service provided to the…
Q: Margaret is the manager of a medium-sized company. A few years ago, Margaret persuaded the owner to…
A: Note: Most businesses count revenue when a sale is made, not when a payment is received.So, doubtful…
Q: Wharton Associates is a recently formed law partnership. Denise Peyton, the managing partner of…
A: Job order costing: Job order costing is one of the methods of costing to find out the cost of an…
Q: Joan owns a print shop and has a difficult time fighting out what to bid on jobs. She knows how to…
A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…
Q: Holton Chairs had been an innovative designer and producer of quality office chairs since Arnold…
A: Recording Journal entries in the books of Holton-Central Holdings Inc. DATE PARTICULARS Ref No…
Q: Three friends go to a restaurant. David, a self-employed entrepreneur, says, “I’ll pay and deduct it…
A: Bill payment: It is amount paid to the vendor or seller for the services or goods received.
Q: Dixie Irwin is the department manager for Religious Books, a manufacturer of religious books that…
A: Here, the manager's bonus is dependant on the cost reduction measures more particularly reducing the…
Q: earch, and assess the costs involved. He concludes that it will be necessary to increase staff…
A: The ethical issues are given as,
Q: e company should purchase an expensive new machine from Radi Ltd, where her brother is the new sales…
A: Standards of ethical conducts can be defined as the standards that should be followed by the members…
Q: Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small,…
A: Ethics refers to the moral values and principles which are to be followed in a person’s behavior or…
Q: Alma and Jean wrote a business proposal for their local partner, the GIF Corporation. They submitted…
A: Technical Communication The purpose of using the technical communication which includes reports…
Q: As a cost accountant for San Francisco Cannery, you have been approached by Phil Perriman, canning…
A: Depreciation is a way to measure the monetary benefit received from an asset during an accounting…
Q: Muscat Tubes Manufacturing LLC is a manufacturer of television picture tubes. The company must keep…
A: ABC analysis basically helps an organization to manage its inventory it basically works by…
Q: Nadia is Future Years Financial Planners' most productive employee. She is not satisfied with how…
A: Trade secrets are the processes and practices that are the secrets of a business and provide the…
Q: ucture, and make appropriate recommendations to the board. He study the report, conduct appropriate…
A: Given as, There is issue regarding health and Safety of the finance director and his fiancee.
Q: Big Tractor, Inc.'s best salesperson is Misty Hammond. Hammond's largest sales have been to…
A: Bob Blanchette's ethical concerns were that he was an employee of Tractor Motors and that he would…
Q: e was not fairly treated and therefore not promoted. He has secured a similar job in XYZ Limited,…
A: Fraud refers to the situation either employee uses the information of a company into wrongdoings.
Q: The director of the art department at an advertising company, Wilson Watson, wants to hire a new…
A: Fringe benefits: The fringe benefits are an additional benefit received by an employee other than…
Q: The operations vice president of Security Home Bank has been interested in investigating the…
A: Activity-based costing is a method of allocation of indirect costs between/among products or…
Q: David Kelley is considering the implementation of an incentive wage plan to increase productivity in…
A: Definition and Goal Accomplishment Plan:Incentive wage is the income earned by the employees in case…
Q: Rexcam is a partnership owned by Wilson, Watts, and Franklin that manufactures special machine tools…
A:
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For…
A: Activity Based Costing: Activity based costing is the method of identifying and assigning costs…
Q: Infinity Designs, an interior design company, has experienced a drop in business due to an increase…
A: Given:
Q: Gordon Grimes, a self-employed consultant near Atlanta, received an invitation to visit a…
A: Grimes can allocate cost on 3 basis: a. Standalone cost method b. Incremental cost allocation…
Q: Many small businesses have to squeeze down costs any way they can just to survive. One way many…
A:
Q: Sharon is an intern with a local CPA firm. Prior to returning to school, her supervisor goes on sick…
A: Ethics are a set of moral principles they affect how people in a society make decisions and how…
Q: he operations vice president of Security Home Bank has been interested in investigating the…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Recently, the owner of KFC Franchise decided to change how she compensated her top manager. Last…
A: The total profit of the owner is calculated by deducting all the amounts of expenses, wages, and…
Q: blem, the board has engaged a consultant to recommend an improved benefits structure, to apply to…
A: The three effected parties are given as,
Q: Holton Chairs had been an innovative designer and producer of quality office chairs since Arnold…
A: A journal entry is made to record the financial transaction in the books of accounts. Note: As you…
Q: A payday loan company has decided to open several new locations in a city and hires consultants to…
A: Since the compensation is based on profit, it is riskier and the payment overall would be more to…
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For…
A: Solution 1: First stage allocation of cost to activity cost pools Particulars…
Q: Suppose Charles owns a lawn-mowing company. Assume that without workers, no yards are mowed. When…
A: Marginal Product = Change in number of lawns mowed / Change in number of workers
Step by step
Solved in 2 steps
- Question 3 Please provide a very detail answer for the below question:- Asma is a junior management accountant at Flower Cloth Ltd. Asma is given the task of compiling a cost-benefit analysis report on whether the company should purchase an expensive new machine from Radi Ltd, where her brother is the new sales manager. Asma did not tell anyone in Flower Cloth about her brother’s new job. In preparing her report, Asma overstates the qualitative benefits and understates the costs associated with this new machine to help her brother make his first sales as the new sales manager. Required: Discuss why and how Asma has deviated from the standards of ethical conduct.Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle's first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is intent on purchasing the warehouse because he believes that more storage space is needed. Jerrod asks Danielle to come to his office, where the following conversation takes place: Jerrod: Danielle, you're new here, aren't you? Danielle: Yes, I am. Jerrod: Well, Danielle, I'm not at all pleased with the capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don't get it, where am I going to place our output? Danielle: Well, we need to get product into our customers' hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers…Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle’s first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is very intent on purchasing the warehouse because be believes that more storage space is needed. Jerrod asks Danielle into his office and the following conversation takes place: Jerrod: Danielle, you’re new here, aren’t you? Danielle: Yes, I am. Jerrod: Well, Danielle, I’m not at all pleased with capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don’t get it, where am I going to place out output? Danielle: Well, we need to get product into our customer’s hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers don’t lie; the warehouse does not…
- Ahmed owns Ahmed Manufacturing LLC based in Muscat. In deciding on several important business-related decisions, he has to deal with the following independent scenarios/statements: (i) All future costs are irrelevant in decision making (ii) A sunk cost is a cost that has already been incurred but that can be avoided at least in part depending on the action a manager takes. (iii) If a firm uses Machine hours as the allocation base and that it has low skilled laborers, a special order caused unplanned overtime. These could create UNFAVORABLE Fixed overhead Spending Variance. (iv) In a decision to drop a segment, the opportunity cost of the space occupied by the segment would be the profit that could be derived from the best alternative use of the space. (v) The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is the product's contribution margin. For each of the scenario/statement (i) to (v) above, STATE your agreement OR…Anita Brown is the manager of a wholesale food company. Her compensation, in part, is incentive-based. In other words, the higher the company income, the higher her incentive compensation. Each year, in an effort to influence her bonus, Anita makes several recommendations, concerning adjusting entries, to the company controller. One of her favorites is to ask the controller to reduce the estimate of doubtful accounts.1. How does lowering the estimate of doubtful accounts affect the income statement and balance sheet?2. Is there an ethical consideration in this case? If so, what is it?3. Should Anita be permitted to weigh in on adjusting entries under these circumstances? Why or why not?Mary Gatan had recently joined the ZMA as a sales executive. She was advised to be retrenched because the company was losing heavily, but that she would be given a substantial separation pay. The general manager, however, suggested to Mary to file a letter of resignation from the company, instead of having been involuntarily separated as the latter would have implications of inefficiency on her part. Mary chose to resign from the company and received the sum of P100,000 as separation pay. The above amount is Exempt from income tax Non-deductible expense on the part of the company Partially taxable Taxable in full
- Ellie Ice-cream’s owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analyses for the year just ended: The owner is thinking the elimination of this counter. If it is eliminated then: Depreciation of counter equipment is avoidable The supervisory salaries is avoidable The insurance expense is unavoidable The depreciation of building unavoidable The general overhead is unavoidable Required:a) Should the company eliminate the counter or not? Fill in the table and justify your answer. b) Mention at least three relevant costs.A local coffee shop has two major product lines—drinks and pastries. If the manager allocates common costs on any objective basis discussed in this chapter, the drinks are profitable, but the pastries are not. The manager is concerned that the supervisor at corporate headquarters will drop the pastries. The manager is concerned because a relative, who is struggling to make a go of a new business, supplies pastries to the coffee shop. The manager, therefore, decides to allocate all common costs to the drinks because “Drinks can afford to absorb these costs until we get the pastries line on its feet.” After assigning all common costs to drinks, both the drinks and pastries product lines appear to be marginally profitable. Consequently, corporate headquarters decides to continue the pastries line. What can we do to boost pastry sales?A local coffee shop has two major product lines—drinks and pastries. If the manager allocates common costs on any objective basis discussed in this chapter, the drinks are profitable, but the pastries are not. The manager is concerned that the supervisor at corporate headquarters will drop the pastries. The manager is concerned because a relative, who is struggling to make a go of a new business, supplies pastries to the coffee shop. The manager, therefore, decides to allocate all common costs to the drinks because “Drinks can afford to absorb these costs until we get the pastries line on its feet.” After assigning all common costs to drinks, both the drinks and pastries product lines appear to be marginally profitable. Consequently, corporate headquarters decides to continue the pastries line. Required How would you recommend the manager allocate the common costs between drinks and pastries? You are the assistant manager and have been working with the manager on the allocation…
- Alma and Jean wrote a business proposal for their local partner, the GIF Corporation. They submitted the proposal to Mr. John Uy, the CEO of the said company. Upon checking, Mr. Uy found out that the business proposal had faulty details about the GIF Corporation. Also, Mr. Uy got tired of reading the entire proposal as it contained unimportant parts. Since Mr. Uy is a busy person, he did not have enough time to read everything in the proposal and resorted to asking Alma and Jean to revise the entire document. Question: Evaluate what characteristic (s) of effective technical communication is not observed and provide a discussion of why you say soMary Martell is a finance intern at a big corporation that was given the task to evaluate the profitability of a new, state of the art production line. She found that the project has a negative NPV. This is bad news for Sarah Pearl, who is the head of the manufacturing department and the proponent of the project. Mary delivered the news to her boss, Winston Rodriguez, who called Sarah and gave her the news: “Hello Sarah this is Winston from the finance department. The new inter confirmed what we all knew in the department: the net present value of your proposal is negative and therefore we need to reject the project. To be honest, we already had reached that conclusion but we wanted an outside opinion and gave Mary the task of evaluating the project. Sorry, but the project is a no.” Sarah later sent an email to Winston: “Winston, please, don’t kill my project.” She then asked the following questions: 1.“Why is the NPV so important? 2.Why don’t we use the average accounting rate of…Mary Martell is a finance intern at a big corporation that was given the task to evaluate the profitability of a new, state of the art production line. She found that the project has a negative NPV. This is bad news for Sarah Pearl, who is the head of the manufacturing department and the proponent of the project. Mary delivered the news to her boss, Winston Rodriguez, who called Sarah and gave her the news: “Hello Sarah this is Winston from the finance department. The new inter confirmed what we all knew in the department: the net present value of your proposal is negative and therefore we need to reject the project. To be honest, we already had reached that conclusion but we wanted an outside opinion and gave Mary the task of evaluating the project. Sorry, but the project is a no.”Sarah later sent an email to Winston: “Winston, please, don’t kill my project.” She then asked the following questions: “Why is the NPV so important? Why don’t we use the average accounting rate of return…