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Accounting 2 week 2 discussion

Accounting 2 week 2 discussion - would each party be...

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Accounting II Week 2 Discussion 1. How did using manufacturing cost only rather than all costs associated with the CompWest.com job affect the amount of Farley’s bid for the job? In this case Hayes did not perform his job complete and correct. He was to include, as stipulated in the pricing policy, costs to design, manufacture, distribute, and provide customer service. Unfortunately Hayes only included the manufacturing costs. Failure to include all costs has caused Farley’s bid to be much lower than what it should be. Hayes should have included all indirect costs: manufacturing overhead, design costs, and customer service for the bid. Farley’s bid would be very low compared to other potential bidders. Without a profit margin Farley may not make a profit at all or they may lose money. 2. Identify the parties involved in Paul York’s ethical dilemma. What are his alternatives? How
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Unformatted text preview: would each party be affected by each alternative? What should York do next? The parties that are involved in York’s dilemma are Bryon Wilson the President, Tony Hayes, the cost accountant, and Paul York, himself being that he is the controller. Bryon Wilson is affected by this because he specifically asked for a pricing policy that included estimated costs to design, manufacture, distribute, and provide customer service for the job and the clear objective was to earn a profit. Tony Hayes is involved because he is the cost accountant who made the mistake and only included manufacturing costs. As I see it Farley may be stuck with a contact if the bid was placed and accepted. York and Bryon Wilson will hopefully be able to fix the error thus allowing Farley to earn a profit and maybe save Hayes’ job. Reassigning the duties of Hayes and his termination do seem to be in order....
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