Chapter 17 Assignment - overhead. Also, this allocation of...

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Aaron New ACC 240 – Section 33858 Oct 31 st , 2010 Chapter 17 assignment PE 17-1) C PE 17-2) D PE 17-4) B PE 17-5) D PE 17-6) E PE 17-7) B PE 17-8) A PE 17-9) B PE 17-10) C AA 15-41 – Minuteman Enterprises Q1) I will change the calculation to ABC as it provides a more accurate analysis of the situation. Although my profit will go down, given the more accurate information, I will be able to provide better information and make better decision. In the short run, I might be earning lesser, but, in the long run, I will be able to recover the losses and even make more profit then if I would stay with the traditional calculation method. Q2) No. it will not be ethical as I have been presented with evidence that direct labor hours is not a very relevant base for allocating manufacturing
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Unformatted text preview: overhead. Also, this allocation of resources will not be beneficial to the company as resources are wasted and could have been put in to better use. Q3) No. It would still be unethical as the method is still not the best suited for the situation. It may be the best method for the other companies, but for Minuteman, the best way to allocate resources is to convert to ABC. Q4) Yes. That would be the way to handle the situation. It will also provide a clean and reliable image to investors as well as the government. This would even bring more investors to invest because of the honest image the company puts up. Also, this will eliminate any future complication which could cost the company a lot more than to return the excess profit....
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This note was uploaded on 10/16/2011 for the course ACC 240 taught by Professor Sidneyford during the Fall '10 term at Chandler-Gilbert Community College.

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Chapter 17 Assignment - overhead. Also, this allocation of...

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