WorldCom: The Final Catalyst 1. WorldCom created excess reserves or provisions for future expenses, which they later released or reduced, thereby adding to profits. The manipulation of profit through reserves or provisions is known as “cookie jar” accounting. According to the SEC first, WorldCom improperly released certain reserves held against operating expenses. Second, WorldCom improperly recharacterized certain operating costs as capital assets. 2. I am uncertain, but I believe the Arthur
Words: 490 - Pages: 2
Index 1. Income statement (Contribution Margin) | | 2008 | | | 2009 | | | 2011 | | 10,153 | Per Unit | Budgeted Amount | 9,967 | Per Unit | Budgeted Amount | 13,063 | Per Unit | Budgeted Amount | Sales | $815 | 8,279,000 | | $814 | 8,117,000 | | $816 | 10,656,000 | VC | $468 | (4,750,000) | | $467 | (4,654,000) | | $467 | (6,106,000) | CM | $347 | 3,529,000 | | $347 | 3,463,000 | | $349 | 4,550,000 | FC | | $(3,230,000) | | | $(3,333,000) | | | $(4,921,000) | NI |
Words: 1147 - Pages: 5
1.0 How do the formats of the income statements shown on pages 33 and 50 of Benetton’s annual report differ from one another (disregard everything beneath the line titled “income from operations”)? Which expenses shown on page 50 appear to have been reclassified as variable selling costs on page 33? A. The income statement shown on page 33 exclusively shows the contribution margin. This format is used for internal company analysis. Benetton has chosen to show it as a part of annual report. The
Words: 271 - Pages: 2
cost to their respective activities. The cost assigned per activity is also assigned to respective products required for each activity. With traditional costing methods manufacturing costs are only assigned to goods that have been sold rather than accounting for nonmanufacturing costs. There are steps to activity-based costing: Identifying the cost of each activity and estimated the total cost and indirect cost Estimate the cost driver for each activity and the total quantity for each driver’s allocation
Words: 1737 - Pages: 7
AUO1 – Auditing and Information Systems Additional Study Questions Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? Transaction processing systems - document financial activities Management information systems - used to collect qualitative as well as quantitative information
Words: 12321 - Pages: 50
Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment Answer Key True / False Questions 1. Controlling involves the coordination of daily business functions within an organization. FALSE AACSB: Reflective Thinking AICPA BB: Industry AICPA FN: Decision Making Bloom's: RC Difficulty: Easy Learning Objective: 01-02 Explain four fundamental management
Words: 6709 - Pages: 27
produces plastic fan parts. Riordans future goal is to be focused in reaching and maintaining profitability in assuring the financial and human capital sustains growth. Riordan Manufacturing have three separate entities with their own Finance and Accounting Systems. All input from these locations are kept at the corporate office in San Jose. Each system has all the same components other than EDI (Electronic Data Interchange) and EDSS (Executive Decision Support System) which is only available at the
Words: 551 - Pages: 3
Management Accounting April 10, 2013 Management Accounting Nepalese Perspective Management accounting is the method of measuring the performance of the organization through both quantitative and non-quantitative approach. Financial accounting and cost accounting both give the quantitative measures based upon which decisions are made but it will not be correct to make decisions based solely upon numbers thus only considering financial terms is considered the old method of decision making in management
Words: 847 - Pages: 4
LEARNING OBJECTIVE LO1: Explain why accounting is essential for decision makers and managers. LO2: Describe the major users and uses of accounting information. LO3: Explain the role of budgets and performance reports in planning and control. LO4: Describe the cost-benefit and behavioral issues involved in designing an accounting system. LO5: Discuss the role accountants play in the company’s value chain functions. LO6: Identify current trends in management accounting. LO7: Explain why ethics and standards
Words: 7862 - Pages: 32
Business Plan Pakmarica Painters is a new company and is a sole- proprietor business made of one principal owner with combination of experience of 30 years in the painting industry. Pakmarica Painters will be owned and directed by Anisa P Khan. The owner will be contributing a considerable amount of her own resources into the business and will also be trying to obtain funding of $50,000 to cover start the business and future development of the business. the company. The business has secured
Words: 760 - Pages: 4
