Sue wooten is the department head in the molding department

Assignment Help Accounting Basics

Reference no: EM13601894

R. B. Patrick Company manufactures a high-tech component that passes through two production processing departments, Molding and Assembly. Department managers are partially compensated on the basis of units of products completed and transferred out relative to units of product put into production. This was intended as encouragement to be efficient and to minimize waste.

Sue Wooten is the department head in the Molding Department, and Fred Barando is her quality control inspector. During the month of June, Sue had three new employees who were not yet technically skilled. As a result, many of the units produced in June had minor molding defects. In order to maintain the department's normal high rate of completion, Sue told Fred to pass through inspection and on to the Assembly Department all units that had defects nondetectable to the human eye. "Company and industry tolerances on this product are too high anyway," says Sue. "Less than 2% of the units we produce are subjected in the market to the stress tolerance we've designed into them. The odds of those 2% being any of this month's units are even less. Anyway, we're saving the company money."

Instructions
(a)Who are the potential stakeholders involved in this situation?
(b)What alternatives does Fred have in this situation? What might the company do to prevent this situation from occurring?

Reference no: EM13601894

Questions Cloud

Do the tools help only in certain situations such as : how would you reply to your coworker? consider the following items in your discussion1.do the tools help only in

Division a sells soybean paste internally to division b : 1.when an industry has excess capacity market prices may drop well below their historical average. if this drop is

You manage a call center and are concerned that the calls : you manage a call center and are concerned that the calls coming into the center are not evenly distributed.you monitor

Find the magnitude and direction of the resultant force on : question an electron is near a positive ion of charge 9e and a negative ion of charge ?8e see the figure below. take a

Sue wooten is the department head in the molding department : r. b. patrick company manufactures a high-tech component that passes through two production processing departments

Maggie sharrer a recent graduate of rollings accounting : maggie sharrer a recent graduate of rollings accounting program evaluated the operating performance of poway companys

Question a 024 microf and a 030 microf capacitor are : question a 0.24 microf and a 0.30 microf capacitor are connected in series to a 9 v battery.a calculate the potential

A treasury bond that matures in 10 years has a yield of 6 : a treasury bond that matures in 10 years has a yield of 6. a 10 year corporate bond has a yield of 8. assume that the

The june 1 work in process inventory consisted of 5000 : clopack company manufactures one product that goes through one processing department called mixing. all raw materials

User Account

All Pages