Find who are stakeholders in this situation

Assignment Help Cost Accounting

Reference no: EM1375407

Curtis Rich, cost accountant for high power mower company currently installed activity based costing at High power St Louis Lawn tractor where three models : 8 hp blade runner, 12 hp quick cut, and 18 hp super cut are manufactured. Curtis's new product costs for these three models show that companies traditional costing system had been significantly under-costing the 18 hp super cut. This was due primarily to lower sales volume of the super cut compared to blade runner and quick cut.

Before completing his analysis and reporting results to management, Curtis is approached by his friend Ed Gray, who is production manager for 18 hp super cut
model. Ed has heard from one of Marcus's staff about new product cost and is upset and worried for his job because new cost show super cut to be losing rather than making money.

At first, Ed condemns new cost system where upon Curtis describes the practice of
activity based costing and why it is more precise than the companies present system. Even more worried now, Ed begs Curtis, "Massage figures just enough to save line from being discontinued. You do not want me to loose my job, do you? Anyway, nobody will know".

Curtis holds firm but agrees to re-compute all his calculations for accuracy before submitting his cost to management.

a) Find who are stakeholders in this situation?

b) What, if any, are ethical considerations in this situation? ( Curtis's ethical consideration ? Ed's ethical consideration ? Management's ethical consideration ?

c) Explain what are Curtis's ethical obligations to the corporation? and to his friend ?

Reference no: EM1375407

Questions Cloud

Robert has just completed a senior secondary level : Robert has just completed a senior secondary level course in desktop painting from NIOS and wants to start a small business of her own related to desktop painting which form of business organisation will you recommend for a small business

Evaluate what macrs convention applies to machine : Evaluate what MACRS convention applies to machine and find weston's cost recovery for 2012 is $ and for 2013 is $ .

Demonstrate the unambiguous gains : A farmer and a rancher currently lead a subsistence existence, manufacturing only meat and potatoes. The farmer could make two units of meat per forty hour week,

Explain delegation of duties and third-party beneficiaries : Explain Delegation of Duties and Third-Party Beneficiaries- Think about the nature of the agreement that you have with the college or university in which you study particularly when you do your own assignments for a grade or degree

Find who are stakeholders in this situation : Find who are stakeholders in this situation and Explain what are Curtis's ethical obligations to the corporation? and to his friend ?

Prepare journal entry for the issuance : Create the journal entry for the issuance when the market price of common shares is $ 168 each and market price of the ideal is 210 each.

Explain noncompetition clause and public policy : Explain Noncompetition Clause and Public Policy- A man entered into an agreement to buy a small business from the entrepreneur who had started it

Provide a brief definition of a compilation : Explain one difference in auditor's procedures when conducting a evaluation under SSARS vs. a review of interim financial information conducted under auditing standards.

Compare a surplus or a deficit : Suppose if you were chief economic advisor to the President at present, what are the 3-recommendations you would make to him to improve overall effectiveness of the economy?

User Account

All Pages