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Question - A larger company has four main departments. The vision is that innovation is absolutely necessary for the company to deliver in the long run. For each department, they have chosen five different target figures as a basis for the company's bonus and incentive system. Three of the target figures are financial, one is related to delivery capability (time to market) and the last is a customer satisfaction target. In connection with the company's budget process, a "target" is always set for the individual target figures. A bonus is paid to the management team in each individual department if the coming years achieve four of the five selected target figures. Discuss the advantages and disadvantages of the chosen bonus system.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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