Reference no: EM13824001
LRF Printing provides printing services to many different corporate clients. Although LRF bids most jobs, some jobs, particularly new ones, are negotiated on a “cost-plus” basis. Cost-plus means that the buyer is willing to pay the actual cost plus a return (profit) on these costs to LRF.
Alice Reiley, controller for LRF, has recently returned from a meeting where LRF's president stated that he wanted her to find a way to charge more costs to any project that was on a cost-plus basis. The president noted that the company needed more profits to meet its stated goals this period. By charging more costs to the cost-plus projects and therefore fewer costs to the jobs that were bid, the company should be able to increase its profit for the current year.
Alice knew why the president wanted to take this action. Rumors were that he was looking for a new position and if the company reported strong profits, the president's opportunities would be enhanced. Alice also recognized that she could probably increase the cost of certain jobs by changing the basis used to allocate manufacturing overhead.
Instructions
(a) Who are the stakeholders in this situation?
(b) What are the ethical issues in this situation?
(c) What would you do if you were Alice Reiley?
|
What will be number of shares outstanding after the split
: Michelangelo Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 4%, preferred stock of $25 par, and 38,000 shares of $75 par common. What will be the number of shares outstanding after the split?
|
|
Benefits of adopting activity based costing in organization
: What are 3 benefits of adopting Activity Based Costing in an organization? What kind of companies adopts Activity based costing? What are 3 limations (disadvantages) of Activity Based Costing?
|
|
About the dividends per share
: Michelangelo Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 4%, preferred stock of $25 par, and 38,000 shares of $75 par common. During its first four years of operations, the following amounts were d..
|
|
Hbs working knowledge
: Case Brief should not exceed 500 words (one single-spaced typed page). It should be written with the assumption that the reader is familiar with the details of the case.
|
|
Negotiated on a cost-plus basis-ethical issues
: LRF Printing provides printing services to many different corporate clients. Although LRF bids most jobs, some jobs, particularly new ones, are negotiated on a “cost-plus” basis. Cost-plus means that the buyer is willing to pay the actual cost plus a..
|
|
Specific ethical issues that general electric
: Determine two (2) specific ethical issues that General Electric (GE) Healthcare faced when implementing its strategy to introduce low cost diagnostic equipment to developing countries. Recommend two (2) actions that GE can take to resolve these ethic..
|
|
Determine net cash flows from operating activities
: During 2010, Diaz Corporation had net income of $41,000. Included on its income statement were depreciation expense of $2,300 and amortization expense of $300. During the year, Accounts Receivable increased by $3,400, Inventories decreased by $1,900,..
|
|
Regression analysis-what are the estimated total costs
: The regression analysis for Cruz Catering gave the following results: Total costs = $3,000 + $1.90 meals + $15 jobs + $100 new products + $50 new customers. What are the estimated total costs in a month in which there are 3,000 meals prepared/sold, 2..
|
|
Quoted material must have accompanying citation
: What is it that sets some large urban areas apart from others and makes them stand out as special tourist destinations? Your essay response must be a minimum of 500 words in length, not counting references listed at the end or repeating of the questi..
|