Stylish Chairs Stylish Chairs is a small company which makes and sells copies of an 18"-century rococo chair. The company is owned by the couple Anni-Frid and Benny. You are an intern working at Stylish Chairs. For the sake of simplicity, this assignment does not consider taxes and other fees and there is no stock or work in process in the beginning or end of every year. You might have to use information from previous questions for answering information for following questions and whenever possible support your arguments with your calculations. Question 1 Anni-Frid and Benny decided they need a management accountant for helping them understand their business and hire an old friend named Björn for this role. Besides being an old friend of the couple, Björn is good at playing the guitar. However, Björn lacks the qualifications for fulfilling the role of a management accountant. Required Please state one of the ethical standards, as provided by the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice', which is being jeopardized by Anni-Frid and Benny hiring Björn and justify why this standard is being jeopardized. (There might be more than one ethical standard being jeopardized but only one is required for this question) Question 2 First Björn is examining the activities for the past year. Stylish Chairs rents a small administrative office in Melbourne's central business district (CBD) for $20,000 per year and a large warehouse in Dandenong for $30,000 per year. The cost with staff in the administrative office in the CBD handling all the bureaucracy is $100,000 per year. Stylish Chairs has hired a firm for managing the sales and this firm charges a commission of $70 for each completed sale. The invoicing system used by Stylish Chairs is outsourced and for each sale completed the firm charges $1. The administrative office had in the past year other miscellaneous costs of $4,000, mostly costs with the lease of material and stationery, and this yearly cost is expected to remain the same amount for years to come. A full-time employee gets paid $80,000 per year for supervising the casual staff working in the warehouse in Dandenong. Like the administrative office, the warehouse had other miscellaneous costs of $5,000 in the past year and is expected to remain the same amount for years to come. Stylish Chairs has a contract with a delivery firm for delivering the copies of the 18th-century rococo chair to their clients, but Björn is not able to find the contract and is not sure how much the firm charges per transaction. The only information he can gather is regarding past year's quarterly costs:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Stylish Chairs
Stylish Chairs is a small company which makes and sells copies of an 18"-century rococo chair. The company
is owned by the couple Anni-Frid and Benny. You are an intern working at Stylish Chairs.
For the sake of simplicity, this assignment does not consider taxes and other fees and there is no stock or work
in process in the beginning or end of every year. You might have to use information from previous questions
for answering information for following questions and whenever possible support your arguments with your
calculations.
Question 1
Anni-Frid and Benny decided they need a management accountant for helping them understand their business
and hire an old friend named Björn for this role. Besides being an old friend of the couple, Björn is good at
playing the guitar. However, Björn lacks the qualifications for fulfilling the role of a management accountant.
Required
Please state one of the ethical standards, as provided by the Institute of Management Accountants (IMA)
Statement of Ethical Professional Practice', which is being jeopardized by Anni-Frid and Benny hiring Björn and
justify why this standard is being jeopardized. (There might be more than one ethical standard being
jeopardized but only one is required for this question)
Question 2
First Björn is examining the activities for the past year. Stylish Chairs rents a small administrative office in
Melbourne's central business district (CBD) for $20,000 per year and a large warehouse in Dandenong for
$30,000 per year.
The cost with staff in the administrative office in the CBD handling all the bureaucracy is $100,000 per year.
Stylish Chairs has hired a firm for managing the sales and this firm charges a commission of $70 for each
completed sale. The invoicing system used by Stylish Chairs is outsourced and for each sale completed the
firm charges $1. The administrative office had in the past year other miscellaneous costs of $4,000, mostly
costs with the lease of material and stationery, and this yearly cost is expected to remain the same amount
for years to come.
A full-time employee gets paid $80,000 per year for supervising the casual staff working in the warehouse in
Dandenong. Like the administrative office, the warehouse had other miscellaneous costs of $5,000 in the past
year and is expected to remain the same amount for years to come.
Stylish Chairs has a contract with a delivery firm for delivering the copies of the 18th-century rococo chair to
their clients, but Björn is not able to find the contract and is not sure how much the firm charges per
transaction. The only information he can gather is regarding past year's quarterly costs:
Transcribed Image Text:Stylish Chairs Stylish Chairs is a small company which makes and sells copies of an 18"-century rococo chair. The company is owned by the couple Anni-Frid and Benny. You are an intern working at Stylish Chairs. For the sake of simplicity, this assignment does not consider taxes and other fees and there is no stock or work in process in the beginning or end of every year. You might have to use information from previous questions for answering information for following questions and whenever possible support your arguments with your calculations. Question 1 Anni-Frid and Benny decided they need a management accountant for helping them understand their business and hire an old friend named Björn for this role. Besides being an old friend of the couple, Björn is good at playing the guitar. However, Björn lacks the qualifications for fulfilling the role of a management accountant. Required Please state one of the ethical standards, as provided by the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice', which is being jeopardized by Anni-Frid and Benny hiring Björn and justify why this standard is being jeopardized. (There might be more than one ethical standard being jeopardized but only one is required for this question) Question 2 First Björn is examining the activities for the past year. Stylish Chairs rents a small administrative office in Melbourne's central business district (CBD) for $20,000 per year and a large warehouse in Dandenong for $30,000 per year. The cost with staff in the administrative office in the CBD handling all the bureaucracy is $100,000 per year. Stylish Chairs has hired a firm for managing the sales and this firm charges a commission of $70 for each completed sale. The invoicing system used by Stylish Chairs is outsourced and for each sale completed the firm charges $1. The administrative office had in the past year other miscellaneous costs of $4,000, mostly costs with the lease of material and stationery, and this yearly cost is expected to remain the same amount for years to come. A full-time employee gets paid $80,000 per year for supervising the casual staff working in the warehouse in Dandenong. Like the administrative office, the warehouse had other miscellaneous costs of $5,000 in the past year and is expected to remain the same amount for years to come. Stylish Chairs has a contract with a delivery firm for delivering the copies of the 18th-century rococo chair to their clients, but Björn is not able to find the contract and is not sure how much the firm charges per transaction. The only information he can gather is regarding past year's quarterly costs:
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