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!
Question - "Blake Romney became Chief Executive Officer of Peters Inc. two years ago. At the time, the company was reporting lagging profits, and Blake was brought in to "stir things up." The company has three divisions, electronics, fiber optics, and plumbing supplies. Blake 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. Blake 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. 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 Peters their whole lives, would lose their jobs.
1. If a division is reporting losses, does that necessarily mean that it should be closed?
2. Was the reallocation of fixed costs across divisions unethical?
3. What should Blake do?"
(Application of Years-of-Service Method) Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service.
walker industries has a bond outstanding with 12 years to maturity a 9 coupon paid semiannually and a 1000 par value.
1.paid the rent for the next six months.a an asset would be debited and an expense credited.b an asset would be debited
The following information pertains to Job A-200. Direct materials $200 Direct labor $120 1. What is the total manufacturing costs assigned to Job A-200
Prepare on Para Company's books journal entries to record the investment-related activities
Prepare a schedule of cash disbursements in April, May, and June for Edwards Company.
Blossom Company gathered the following reconciling information in preparing its April bank reconciliation:
Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet would be five years, after which time the vehicles would have to be d..
which of the following best describes what is meant by generally accepted auditing standards? audit assertions
Hermosa Components: Revenue Growth Scenario. As a result of their analysis in problem, Hermosa wishes to explore the implications of being able to grow sales.
What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease? What are the free cash flow consequences of leasing the fabricator if the lease is a true tax lease?
On the basis of this agreement, what price should the investor offer? A normal return on the fair value of net assets in this industry is 15 percent
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