FINANCIAL ACCT.FUND.(LOOSELEAF)
FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 9, Problem 3AA
To determine

Ethical issue:

Cameron Bly is a sales manager in an automobile dealership. The bonus earned by him per year is based on number of autos sold in a year less related warranty expenses and actual expenses varied from 3% low to 10%high over the prior 10 years and Bly has tended to estimate warranty expenses high end.

1.

To identify:-warranty accrual decision creates any ethical dilemma for Bly.

2.

To determine

To identify:-the percent warrant expenses Bly should choose for current year.

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