Lecture 5 - Case7-18 - CASE 7-18 Ethics and the Manager;...

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CASE 7-18 Ethics and the Manager; Absorption Costing Income Statements Michael Lee was hired as chief executive officer (CEO) in late November by the board of directors of Hunter Electronics, a company that produces a state-of-the-art DVD drive for personal computers. The previous CEO had been fired by the board due to a series of questionable business practices including prematurely recording revenues on products that had not yet been shipped to customers. Michael felt that his first priority on the job was to restore employee morale—which had suffered during the previous CEO's reign. He was particularly anxious to build a sense of trust between himself and the company's employees. His second priority was to prepare the budget for the coming year, which the board of directors wanted to review in their December 15 meeting. After hammering out the details in meetings with key managers, Michael was able to put together a budget that he felt the company could realistically meet during the coming year. That budget appears below:
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This note was uploaded on 10/20/2010 for the course AD abc123 taught by Professor Cat during the Summer '09 term at City University of Hong Kong.

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Lecture 5 - Case7-18 - CASE 7-18 Ethics and the Manager;...

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