CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings. Identify the stakeholders in this situation.

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Answer 1

Question

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the obligations of CR to the management and to EG.

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Answer 2

Question

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the obligations of CR to the management and to EG.

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the obligations of CR to the management and to EG.

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Answer 4

Question

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the obligations of CR to the management and to EG.

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Answer 5

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the obligations of CR to the management and to EG.

Answer 6

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

Answer 7

Chapter 17, Problem 4EYCT

a)

To determine

Case Summary:

CR is the Cost accountant of Company HPM. He implements Activity-based costing, in one of the plants, which is producing 3 models of mowers. On the analysis he finds out that the costs of Supercut model of mower was understated in the traditional costing. He also finds out that the sale of Supercut mower was lesser than the other 2 models. On knowing this analysis report, EG the head of Supercut model approaches CR. EG condemns the new pricing model but, CR explains him the benefits and accuracy of the Activity-based costing. So EG requests CR to massage the figures so that the product is not phased off, or else he might lose his job. Now CR holds to his stand, but assures to recompute the calculations to ensure the accuracy in his findings.

Identify the stakeholders in this situation.

Answer 8

b)

To determine

Identify the ethical considerations in this situation.

Answer 9

b)

To determine

Identify the ethical considerations in this situation.

Answer 10

c)

To determine

Identify the obligations of CR to the management and to EG.

Answer 11

c)

To determine

Identify the obligations of CR to the management and to EG.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 17 - Prob. 1Q Ch. 17 - Prob. 2Q Ch. 17 - Prob. 3Q Ch. 17 - Prob. 4Q Ch. 17 - Prob. 5Q Ch. 17 - Prob. 6Q Ch. 17 - Prob. 7Q Ch. 17 - Prob. 8Q Ch. 17 - Prob. 9Q Ch. 17 - Prob. 10Q

Identify the ethical considerations in this situation.

Identify the obligations of CR to the management and to EG.

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Chapter 17 Solutions