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As the management accountant at AJack Partnership, you are involved in the planning and control of financial statements and cost accounting. AJack has been experiencing excellent sales and profit numbers. You have decided to invest and purchase stock in the company. The direct investment would not be material to the company, but it would be material to you. In your free time, you like to go to the local Gambling and Jack Box Boat.
Do you think that you should face the same integrity issues that an outside auditor faces with respect to conflicts of interest? Why, or why not?
As an employee of the firm, do you believe that you should refrain from engaging in questionable activities, such as gambling? Why, or why not?
Do you believe that internal management accountants possess the degree of skill commonly possessed by outside accountants and auditors? Explain your reasoning.
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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.
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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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