e 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 s
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REQUIREMENT: Ethical behaviour for managers and
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.
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- Preventing Job Withdrawal Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of essential knowledge and the effect on company morale. Organizations can mitigate voluntary turnover by recognizing signs of a progression of withdrawal and taking actions to retain these individuals. Employees may show signs of job withdrawal through behavior change, physical job withdrawal, and psychological job withdrawal. In this exercise, please read the following mini-case and answer the question that follows. Work had become so burdensome for Michelle that she dreaded having to show up every day. Michelle was recruited from a competitor of the company, and during her first month she excelled in her performance. Her managers and co-workers at first welcomed her and were quite friendly. They had however become somewhat complacent in their jobs and began to be a bit jealous of…The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank’s variousbranches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions.The Westfield branch of Security Home Bank has submitted the following cost data for last year:…Review the scripture below. Does God's word here have relevance to the concepts being studied in Managerial Accounting, or do spiritual and business concepts just not mix? Please share your ideas and give examples. Feel free to cite other sources. Luke 14:28-30 in the Bible reads: “But don’t begin until you count the cost. For who would begin construction of a building without first calculating the cost to see if there is enough money to finish it? Otherwise, you might complete only the foundation before running out of money, and then everyone would laugh at you. They would say, ‘There’s the person who started that building and couldn’t afford to finish it!’" Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income. A company is offered incremental business at a special price that exceeds the variable cost. What other issues must the company consider in deciding whether to accept the business? Although the cost-plus approach to product…
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- The Carla Vista Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The actual operating results appeared as follows. Determine the missing amounts. (Round Return on Investment to 1 decimal place, e.g. 52.7%.) Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment $ Planes 5,018,000 1,518,000 25,018,000 12% Taxis $459,000 $ 189,000 79,000 10% Limos 329,000 389,000…The operations vice president of Security Home Bank is investigating the efficiency of the bank's operations. She is concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt to show how those costs are related to the various services provided by the bank. The operations vice president has asked for your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home Bank submitted the following cost data for last year: Teller wages Assistant branch manager salary Branch…Mary Smith is the controller for ABC Printing Service. Mary has been putting in a lot of overtime; therefore, she has been allowed hire an assistant. Mary’s assistant is a bright, high school graduate, but he has never taken an accounting class. Mary is trying to decide which accounting activities could be delegated to her assistant. Mary is willing to give the assistant a few simple instructions on how to complete each task, but she doesn’t have time to teach the assistant to be an accountant. For each task listed, state whether Mary should continue to do the work or delegate the task to her assistant. Please explain each answer. List the account balances from the general ledger in the Trial Balance columns of the end-of-period spreadsheet. Add the Debit and Credit columns of the trial balance. Make the adjusting entries on the spreadsheet. Complete the spreadsheet. Type the formal financial statements using the data from the Income Statement and Balance Sheet columns of the…
- Assume Ethan Lester and Vick Jensen are CPAs. Ethan was seen as a “model employee” who deserved a promotion to director of accounting, according to Kelly Fostermann, the CEO of Fostermann Corporation, a Maryland-based, largely privately held company that is a prominent global designer and marketer of stereophonic systems. The company has an eleven person board of directors. Kelly considered Ethan to be an honest employee based on performance reviews and his unwillingness to accept the promotion, stating that he wasn’t ready yet for the position. Kelly admired his willingness to learn and grow, not just expect a promotion. Little did she know that Ethan was committing a $50,000 fraud during 2015 by embezzling cash from the company. In fact, no one seemed to catch on because Ethan was able to override internal controls. However, the external auditors were coming in and to solidify the deception, he needed the help of Vick Jensen, a close friend who was the accounting manager and also…Preventing Job Withdrawal Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of essential knowledge and the effect on company morale. Organizations can mitigate voluntary turnover by recognizing signs of a progression of withdrawal and taking actions to retain these individuals. Employees may show signs of job withdrawal through behavior change, physical job withdrawal, and psychological job withdrawal. In this exercise, please read the following mini-case and answer the question that follows. Work had become so burdensome for Michelle that she dreaded having to show up every day. Michelle was recruited from a competitor of the company, and during her first month she excelled in her performance. Her managers and co-workers at first welcomed her and were quite friendly. They had however become somewhat complacent in their jobs and began to be a bit jealous of…Preventing Job Withdrawal Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of essential knowledge and the effect on company morale. Organizations can mitigate voluntary turnover by recognizing signs of a progression of withdrawal and taking actions to retain these individuals. Employees may show signs of job withdrawal through behavior change, physical job withdrawal, and psychological job withdrawal. In this exercise, please read the following mini-case and answer the question that follows. Work had become so burdensome for Michelle that she dreaded having to show up every day. Michelle was recruited from a competitor of the company, and during her first month she excelled in her performance. Her managers and co-workers at first welcomed her and were quite friendly. They had however become somewhat complacent in their jobs and began to be a bit jealous of…