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1. Compare and contrast the production process based on manufacturing type. Provide an actual product as an example when describing the manufacturing type. (a) Make-to-assemble (b) Make-to-order (c) Make-to-stock

1. Compare and contrast the production process based on manufacturing type. Provide an actual product as an example when describing the manufacturing type. (a) Make-to-assemble (b) Make-to-order (c) Make-to-stock

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Provide a 2-page essay answering these questions. 

1. Compare and contrast the production process based on manufacturing type. Provide an actual product as an example when describing the manufacturing type. (a) Make-to-assemble (b) Make-to-order (c) Make-to-stock 2. Juan Dela Cruz is a production manager in a manufacturing company. He recently instructed the production department to replace a steel component of the product with plastic to reduce unit costs. Since making the change, there has been a sharp increase in product returns due to malfunction. In order to hide his poor decision, he instructs you, the accountant, to not record the returns. Juan Dela Cruz also told the manufacturing department to simply replace the returned units with a new plastic component and put the repaired units back into finished goods. (a) What could be the effect of the production manager's instruction to hide the returns in the Cost of Sales section? (b) Is it ethical for the production manager to give the above instructions i. to you as an accountant and ii. to the manufacturing department? (c) What could be the eventual result of his actions? (d) How will you respond to this situation?
Transcribed Image Text:1. Compare and contrast the production process based on manufacturing type. Provide an actual product as an example when describing the manufacturing type. (a) Make-to-assemble (b) Make-to-order (c) Make-to-stock 2. Juan Dela Cruz is a production manager in a manufacturing company. He recently instructed the production department to replace a steel component of the product with plastic to reduce unit costs. Since making the change, there has been a sharp increase in product returns due to malfunction. In order to hide his poor decision, he instructs you, the accountant, to not record the returns. Juan Dela Cruz also told the manufacturing department to simply replace the returned units with a new plastic component and put the repaired units back into finished goods. (a) What could be the effect of the production manager's instruction to hide the returns in the Cost of Sales section? (b) Is it ethical for the production manager to give the above instructions i. to you as an accountant and ii. to the manufacturing department? (c) What could be the eventual result of his actions? (d) How will you respond to this situation?
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