Connor bly is a sales manager for an automobile dealership

Reference no: EM13608907

Connor Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue from the number of autos sold in the year less related warranty expenses. Actual warranty expense have varied over the prior 10 years from a low of 3% of an automobile's selling price to a high of 10%. In the past, Bly has tended to estimate warranty expenses on the high end to be conservative. He must work with the dealership's accountant at year-end to arrive at the warranty expense accrual for cars sold each year.

1. Does the warranty accrual decision create any ethical dilemma for Bly?
2. Since the warranty expenses vary, what percent do you think Bly should choose for the current year? Justify your response.

Reference no: EM13608907

Questions Cloud

Determine the speed of the satellite as it approaches b on : to place a communications satellite into a geosynchronous orbit at an altitude of 22240 mi above the surface of the

Balser company manufactures and sells a product called : balser company manufactures and sells a product called northmoon. results of last year for the manufacture and sale of

Verdugo corporation is considering three long-term capital : verdugo corporation is considering three long-term capital investment proposals. relevant data on each project are as

A first is accustomed to training operators who do certain : a first is accustomed to training operators who do certain tasks on a production line. those operators who attend the

Connor bly is a sales manager for an automobile dealership : connor bly is a sales manager for an automobile dealership. he earns a bonus each year based on revenue from the number

A what is the magnitude of the electric field at the third : two particles each with a charge of magnitude 17 nc are placed at two of the vertices of an equilateral triangle with

Syfy company on july 15 sells merchandise on account to : syfy company on july 15 sells merchandise on account to eureka co. for 3000 terms 210 n30. on july 20 eureka co.

We have discussed at length the earned value management : we have discussed at length the earned value management process. i am sure all of you have used the traditional process

Bard manufacturing uses a job order cost accounting system : bard manufacturing uses a job order cost accounting system. during one month bard purchased 189000 of raw materials on

User Account

All Pages