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Unformatted text preview: 1-16(15 min.)Value chain and classification of costs, computer company.Cost Item Value Chain Business Functiona.Productionb.Distributionc.Designof products, services or processesd.Research and Developmente.Customer Service or Marketingf.Designof products, services or processes(or Researchand Development)g.Marketingh.Production1-17(15 min.)Value chain and classification of costs, pharmaceutical company.Cost Item Value Chain Business Functiona.Designof products, services or processesb.Marketingc.Customer Serviced.Research and Developmente.Marketingf.Productiong.Marketingh.Distribution1-26 (15 min.)Managementaccounting guidelines.1. Cost-benefit approach 2. Behavioral and technical considerations 3. Different costs for different purposes 4. Cost-benefit approach 5. Behavioral and technical considerations 6. Cost-benefit approach 7. Behavioral and technical considerations 8. Different costs for different purposes Behavioral and technical considerations1-29 (3040 min.)Professional ethics and end-of-year actions.1.The possible motivations for the snack foods division wanting to take end-of-year actions include: (a) Management incentives. Gourmet Foods may have a division bonus scheme based on one-year reported division earnings. Efforts to front-end revenue into the current year or transfer costs into the next year can increasethis bonus. (b) Promotion opportunities and job security. Top management of Gourmet Foods likely will view those division managers that deliver high reported earnings growth rates as being the best prospects for promotion. Division managers who deliver unwelcome surprises may be viewedas less capable. (c) Retain division autonomy. If top management of Gourmet Foods adopts a management by exception approach, divisions that report sharp reductions in their earnings growth rates may attract a sizable increase in top management supervision. 2.The Standards of Ethical Conduct . . . require managementaccountants to Perform professional duties in accordance with relevant laws, regulations, and technical standards.Refrain from engaging in any conduct that would prejudice carrying out duties ethically.Communicate information fairly and objectively.Several of the end-of-year actions clearly are in conflict with these requirements and should be viewed as unacceptable by Taylor.(b) The fiscal year-end should be closed on midnight of December 31. Extending the close falsely reports next years sales as this years sales. (c) Altering shipping dates is falsification of the accounting reports. (f) Advertisements run in December should be charged to the current year. The advertising agency is facilitating falsification of the accountingrecords....
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This note was uploaded on 06/06/2011 for the course ACCT 305 taught by Professor Franz during the Spring '07 term at S.F. State.
- Spring '07