A cost report involves information about spending and expenditure on different activities of the business. Through this cost report, it is easy to inform the client and disclose the projected and actual costs of the project. And, it is useful to get information about the profitability of the project. Given Information: Person T got agreed to go along with reporting the favorable variance which is $21,000 for industrial engineering in the final report but the bill was not received yet. Therefore, it can mislead and exclude the final cost of the contract. This practice violated the credibility standard of the profession which is considered by the (IMA) Institute of Management Accountants Statement. Because the credibility standard of IMA requires that the management or other accountant professionals need to disclose all the relevant information. The acts of person T in response to the given situation.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 9.24C

To determine

Introduction: A cost report involves information about spending and expenditure on different activities of the business. Through this cost report, it is easy to inform the client and disclose the projected and actual costs of the project. And, it is useful to get information about the profitability of the project.

Given Information: Person T got agreed to go along with reporting the favorable variance which is $21,000 for industrial engineering in the final report but the bill was not received yet. Therefore, it can mislead and exclude the final cost of the contract. This practice violated the credibility standard of the profession which is considered by the (IMA) Institute of Management Accountants Statement. Because the credibility standard of IMA requires that the management or other accountant professionals need to disclose all the relevant information.

The acts of person T in response to the given situation.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Liam Corp. purchased 12,000 shares of Horizon Ltd.'s stock for $320,000 on August 15, 2014, classified as available for sale. Market value decreased to $195,000 by December 31, 2014. Liam reclassified this as trading securities in November 2015 when market value increased to $275,000. What effect on 2015 income should Liam report for Horizon Ltd. shares?

I am looking for the correct answer to this financial accounting question with appropriate explanations.

Express the gross profit amount as a percentage of the sales amount for tesla.