Who are the potential stakeholders involved

Assignment Help Cost Accounting

Reference no: EM13168785

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: EM13168785

Questions Cloud

Prepare a schedule of adjustments as of december : Prepare a schedule of adjustments as of December 31, 2012, to the initial amounts per Dimitri's accounting records.

What is the formula of the manganese chloride compound : What is the formula of the manganese chloride compound produced in the reaction? (Type your answer using the format CO2 for CO2.)

How many valence electrons : The phosphorous anion (P-) has how many total electrons and how many valence electrons?

What will be the volume of the blimp at a height : what will be the volume of the blimp at a height of 2300 m, where the temperature is 12°C?

Who are the potential stakeholders involved : Who are the potential stakeholders involved and what alternatives does Fred have in this situation? What might the company do to prevent this situation from occurring?

What is the enthalpy of solution of licl expressed : A 4.50G sample of LiCl at 25.0 degree celcius dissolves in 25.0 mL of water also at 25.0 degree celcius. The final equilibrium temperature of the resulting solution is 60.8 degree celcius. What is the enthalpy of solution of LiCl expressed in kilo..

What is the pressure of the gas trapped in the buret : if the height of the mercury column in the leveling bulb is 20 mm greater than that in the gas buret and the atmospheric pressure is 650 mm, what is the pressure of the gas trapped in the buret?

How much oxygen is required to oxidize it back to co2 : All the CO2 that enter waterbody is converted to CH2O. How much oxygen (moles/m^2) is required to oxidize it back to CO2?

Examine the two operating statements in detail : Examine the two operating statements in detail, paying particular attention to the lines on which changes in net position and changes in fund balances are reported and develop a list of reasons why the two numbers are not the same.

User Account

All Pages