EIP Project S2-1: Multiple Allocation Bases and Ethical Dilemmas The profitability of the two types of products can be impacted by changing the allocation base in the way that the text implies. As stated in the case study, the controller’s reasoning is he wants the highest percentage of overhead cost assigned to the military contracts (Whitecotton, 2011). This impacts the profitibility of both product lines by (a.) increasing the apparent “cost” of each unit so as to increase the sale price
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different proportions of overhead rates. A more careful allocation should then lead to better business decisions. However, it is possible that some activity-based costs are irrelevant for decision-making scenarios, since this system does not conform to accounting standards and may therefore not be used for decisions regarding this area. This means that interpreting ABC information along with account data will require some expertise or else it
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Organisational Behaviour U58029 Individual assignment Name: Miguel Zhou Yang Student number: 13083861 Word count: Part 1: Organisational Misbehaviour Organisational behaviour can be defined as the study of what people think, feel and do in and around organisations (Mcshane & Glinow, 2008). Thus, the antonym for Organisational behaviour would obviously be Organisational Misbehaviour which its easiest and simplest definition according to Ackroyd & Thompson (1999) is “Organisational
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lucrative. In the early 1990's, Waste Management, instead of just picking up the garbage, provided garbage to their investors in the form of an accounting scandal which cost investors approximately $6 billion (Bloomberg News) and was described by Thomas C. Newkirk, associate director of the SEC's Division of Enforcement as "one of the most egregious accounting frauds we have seen" (SEC). What Mr. Newkirk is describing is a long-standing policy by those at the top of the executive rung at Waste Management
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to the upward of overcapacity, competition, and reduced demand for telecommunication services at the start of the economic recession and the result of the dot-com bubble downfall. All these burdens triggered WorldCom to become involved in accounting fraud and cook the books. WorldCom’s CFO Scoot Sullivan began the process of mismanaging as capital expenditure with what should have been normal expenses, therefore turning losses in profit, creating a camouflage that the company is carrying out
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Salem Telephone Company | Accounting 5302 | | Summary: Salem Data Services is a subsidiary of Salem Telephone Company. In this report we analyze and discuss the impact of Salem Data Services on its parent company and determine the best course of action for Salem’s Management to undergo. Expenses: We analyzed the expenses of Salem Data Services to better understand their cost structure and determined their variable and fixed expenses. We used the fact that revenue hours are the cost
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SELECTION CRITERIA: In selecting what option to select the team came up with the following criteria: 1.) Selected option should lead to a reduction in working capital requirement and reduce short term debt in the process. 2.) Selected option should reduce the Cash Conversion Cycle. 3.) Selected option should free up locked capital in receivables and inventories. 4.) Selected option should lead to a zero working capital policy in the long run. SELECTED OPTIONS: We decided to tighten accounts receivable
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Process of AIS Kudler Fine Foods is a company that is looking to expand and integrate their accounting software. Accuracy and the ability to have all locations communicate are essential in the decisions of the direction the company. Software that caters to the majority needs of the company will facilitate the recording process and increase the accuracy of such action. There are several types of accounting information systems the company could use. Each type has their advantages and disadvantages
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University of St. Marks and St. Johns MBA 621 Financial and Managerial Accounting Assignment 2: “Budgeting” Students Name: Md. Bazlul Karim Students ID: R1404D113105 Contents Introduction: 3 Question-1 3 Budgeting: 3 Strategic Planning: 3 Differences among Long Range Planning, Strategic Planning and Budgeting 4 Is Budgeted performance better than past performance as a basis for judging actual results? 4 The benefits of budgeting: 4 Is budgeting an unnecessary burden for
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pay attention to change in each transaction than the total value and have a tendency to get more distressed by the prospective losses than the happiness from prospective gains in an investment. 1. Frame Dependence: Example: 2. Mental Accounting: It explains how current and future assets are divided into different groups and therefore differently treated which explains the change in their investment decision and behaviour. Example: If given an option to buy either a piece of land at
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