Cato is a cma working in a new assignment as an assistant

Reference no: EM13583291

Cato is a CMA working in a new assignment as an assistant to Rose. Rose is the head manager of a production department. Cato notices the department has over-applied factory overhead in each of the last ten years. Cato asks Rose about the pattern and is reminded that bonuses depend on meeting budgets. Rose further tells Cato not question estimates.

Required:
(a) Why would the Rose do this?
(b) What is the harm to the company?
(c) What should Cato do, and why?
(d) What actions should Cato avoid, and why?

Reference no: EM13583291

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