Question 5: Planning: Operational BudgetsJohn is a manager of the sales department of Conad company. The company operates in therętail industry where it buys products from offshore suppliers at a lower price and sells thoseproducts in the local market at a higher price. The pandemic has slowed down the movementsof goods across countries. Most countries have restricted or stopped international flights andair travel. This has, in turn, shrunk the air freight capacity of most of the airlines. The shippingsector has also been hit as vessels are placed under quarantine for weeks before beingallowed into the ports thereby slowing down processes. Shipping containers are stuck at theports and on transit at state borders. Due to these changed conditions, the company needsto place its orders to the suppliers eight months in advance to meet customer demands ontime. The CFO of the company is preparing the master budget for next year and asked johnto provide him with information on the estimated sales for next year. The company has apolicy that sales managers can receive a bonus equal to 5 percent of the actual sales in excessof budgeted sales.Reqüired:(a) Describe the ethical conflict that John is facing when asked to provide estimated salesfor next year?(b) If John behaves unethically, how would his behaviour impact the company and itscustomers?ce fo..docxSAQ Which side..docxTopic 6 Decision..pptSAQ B33°C A

(A) Being a sales manager if asked to estimate the sales for the coming year there are some ethical…

John is a manager of the sales department of Conad company. The compan rętail industry where it buys products from offshore suppliers at a lower pri products in the local market ata higher price. The pandemic has slowed dow of goods across countries. Most countries have restricted or stopped interna air travel. This has, in turn, shrunk the air freight capacity of most of the airli sector has also been hit as vessels are placed under quarantine for wee allowed into the ports thereby slowing down processes. Shipping container: ports and on transit at state borders. Due to these changed conditions, the to place its orders to the suppliers eight months in advance to meet custon

John is a manager of the sales department of Conad company. The compan rętail industry where it buys products from offshore suppliers at a lower pri products in the local market ata higher price. The pandemic has slowed dow of goods across countries. Most countries have restricted or stopped interna air travel. This has, in turn, shrunk the air freight capacity of most of the airli sector has also been hit as vessels are placed under quarantine for wee allowed into the ports thereby slowing down processes. Shipping container: ports and on transit at state borders. Due to these changed conditions, the to place its orders to the suppliers eight months in advance to meet custon

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 2E

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