Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Robert Buey became Chief Executive Officer of Phelps Manufacturing two years ago. At the time, the company was reporting lagging profits, and Robert was brought in to "stir things up." The company has three divisions, electronics, fiber optics, and plumbing supplies. Robert has no interest in plumbing supplies, and one of the first things he did was to put pressure on his accountants to reallocate some of the company's fixed costs away from the other two divisions to the plumbing division. This had the effect of causing the plumbing division to report losses during the last two years; in the past it had always reported low, but acceptable, net income. Robert felt that this reallocation would shine a favorable light on him in front of the board of directors because it meant that the electronics and fiber optics divisions would look like they were improving. Given that these are "businesses of the future," he believed that the stock market would react favorably to these increases, while not penalizing the poor results of the plumbing division. Without this shift in the allocation of the fixed costs, the profits of the electronics and fiber optics divisions would not have improved. But now the board of directors has suggested that the plumbing division be closed because it is reporting losses. This would mean that nearly 500 employees, many of whom have worked for Phelps their whole lives, would lose their jobs.
If a division is reporting losses, does that necessarily mean that it should be closed?Was the reallocation of fixed costs across divisions unethical?What should Robert do?
in march kelly company had the following unit production costs materials 12 and conversion costs 9. on march 1 it had
describe the difference between temporary and permanent accounts and state which ones are closed. describe the purpose
oneida associates is a real estate company operating in the finger lakes region of central new york. its leasing
gulf coast resins company processes a base chemical into plastic. standard costs and actual cost for direct materials
Edgemont paid a cash dividend of $25,000 in 2009. No additional stock was issued. Compute the retained earnings on December 31, 2008, and 2009.
a companys fixed operating costs are 480000 its variable costs are 3.85 per unit and the products sales price is 4.30.
chocolaterie de geneve sa is located in a french-speaking canton in switzerland. the company makes chocolate truffles
Net cash flow provided (used) by operating activities. Net cash flow provided (used) by investing activities. Net cash flow provided (used) by financing activities.
adjusting entries are required at the end of the period to ensure that accrual accounting principles are applied.the
How much of the accrued bonuses can North Inc. deduct in year 1 under the alternative scenarios - North paid the bonuses to the employees on March 1 of year 2.
what is net present value of the following cash flows1 investment now of 450002 revenues of 13000 for 15 years and3
Assuming that the spot rate in 90 days is $.71, what is the net amount paid, assuming FAB wishes to minimize its cost?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd