What cost for wood should hold be incurred to generate 4000 chopping blocks? How much greater or smaller amount is this?
manufactured 4000 chopping boards using 11,000 board feet of hardwood. The hardwood cost the company $18,700. Standards for one chopping board are 2.5 board ft. at a cost of $1.80/board ft.Answers: what it should be: 2.5 x 4000 x 1.8 = $18,000
so you compensated an extra $700.
it's because you used more wood per block than the standard not because the wood itself is more expensive, it's actually cheaper.
$18,700/ 11,000= $1.7 per board ft --> the actual price of wood
**Is this Ethical?**?
The net income of Simon and Hobbs, a department store, decrease sharply during 2000. Carol Simon, owner of the store, anticipates the need for a sandbank loan in 2001. Late contained by 2000, Simon instructs the store's accountant to record a $10,000 Dutch auction of furniture to the Simon family, even though the stock will not be shipped from the manufacturer until January 2001. Simon also tell the accountant not to make the following December 31, 2000 adjust entries:Salaries owed to employees: $900
Prepaid insurance that have expired: $400
This is the full Question: Why is Simon taking this action? Is her management ethical? Give your reason, identify the parties help and the parties harmed by Simon's deed.
Answers: Recording a sale that have not taken place yet raise revenue.
Not recording salary that are owed decreases liability.
Recording a prepayment that has expired increases assets.
Simon is doing this to form the financial statements look better so that the company is more likely to receive a loan. She knows that the concluding year's results are bad, so she's trying to brand them look better artificially.
Very unethical, and against the law as well.
Those help: initially, the company assuming that they get the loan, the guard officer who arranges the loan, the accountant who I assume would be fired if they didn't do what they were told.
In the long run though, everyone loses. The company will lose because it is not financially strong plenty to support the loan payments, that's why the bank wouldn't hold given it had the genuine results been shown. The company may be in motion bankrupt, which will head to Simon and all the team losing their jobs, so they adjectives lose. The bank will lose if it is unqualified to get rear legs all the money it lent. If the company is a huge employer, the local population will lose out due to increased unemployment. The governing body will lose out due to not getting the taxes. Any investors in the company will lose adjectives their money, since creditors get salaried back until that time shareholders in the event of liquidation.
It would be even worse if the company needs to be audited (which is probable for a large department store). This would be found out, and assuming that they aren't competent to give a proper explanation as to why they did it, in attendance would be legal ramification involved. People have gone to top-security prison for "cooking the books". At the very smallest, the auditor would reverse all those incorrect entries, re-generate the financial statements as the correct, older ones and bill the company extra for the hassle.
Basically it looks good for everyone at the start, but the article to remember is that there's a reason why the mound doesn't give a loan to a doomed to failure company - because the likelihood is that everyone will lose out. They don't do it lately to be mean, because loans are how they earn money. It's dishonourable, illegal and additionally a fruitless business decision to borrow more money than you know you can pedal.
Simple, since Carol Simon is planning for a bank loan, they requirement to make it look resembling the company is doing well. Basically, they are "padding" paperwork so that they can get any more money or a bigger chance for a loan.
Action is as expected, unethical but widely practiced. The party harmed by this is the bank who will be issuing the loan. ^_^
How much money should I trade name?
I'm trying to justify making person the highest rewarded person within my company, even making more money than my president, because i'm personally responsible for 55% of the company's gross profit per annually. I'm looking for articles that support big paid sale staff (I remember reading one in forbes where on earth it's indicated that often times the VP of sale makes more than the CEO) or any information you guys can share beside how best to justify my repay using the numbers or other information. Thanks!Answers: I have read somewhere. I will check and get hold of back to you.