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wolverine [178]
3 years ago
13

Eric, the owner of a struggling business that supplies fresh product to restaurants, is faced with a decision that will mean eit

her the collapse of his business or perhaps the success of his business: Should he fill customer orders for produce with some older produce mixed in with the fresh produce
Business
2 answers:
Sloan [31]3 years ago
5 0

Answer: He should go with the ethically correct option which is not to mix the older produce with the newer one.

Explanation:

In ethical dilemmas especially ones involving business it is best to go for the ethically right option. Unethical decisions can give short term results but they are almost always caught out in the future meaning that the business faces ruin in the future. Using the cases of Enron and Worldcom as examples where the companies engaged in unethical accounting conduct that guaranteed short term success, their fall from grace showed that unethical decisions are not sustainable.

With this in mind he should not mix the produce for his business to survive because there is a high chance he will reject it in future.

zaharov [31]3 years ago
3 0

Answer:

Yes, this is an ethical dilemma because no choice is 100% right or wrong, and both choices are basically undesirable and equally bad.

Explanation:

Eric has two options:

  1. Keep selling his products like he has been doing so far, i.e. not mixing older products with fresh products, but most probably will go bankrupt and will have to close his business.
  2. Start to save some money by mixing older products with fresh products and hopefully he will be able to save his business, but he will be cheating on his clients and that will eventually come back to bite him.

If he chooses option one, he will probably have to close his business, and if he chooses option two, he will be doing something bad that may eventually cause him to close down also.  

It is easy to say that Eric should do the right thing and sink with the ship, but what if your were Eric? There is an old Cheyenne saying "don't judge a man until you've walked two moons with his moccasins (shoes)".

Eric needs to balance out what is best for him and what is the correct thing to do, and if possible try to come up with a third alternative that isn't so disastrous.

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In a company's standard costing system, direct labor-hours are used as the base for applying variable manufacturing overhead cos
BARSIC [14]

Answer:

From this information one can conclude that last period the variable overhead efficiency (quantity) variance was <u>unfavorable.</u>

Explanation:

The variable overhead efficiency variance measures the difference between the actual and budgeted hours worked with respect to standard variable overhead rate per hour.

Variable overhead efficiency variance can be calculated thus:

Actual labor hours less budgeted labor hours x Hourly rate for standard variable overhead

If the time it takes to manufacture a product and the time budgeted for it matches or performs well, the labor efficiency is favorable.

Variable overhead efficiency variance is deemed unfavorable when it takes the company more time than budgeted to produce. This also shows labor efficiency variance was unfavorable.

4 0
3 years ago
The following information was drawn from the 2016 accounting records of Ozark Merchandisers: 1. Inventory that had cost $21,200
solniwko [45]

Explanation:

Sales Discount = (Gross Sales - Sold Price) × Discount percentage

($39,900 - $1,520) × 2%

Net sales = Gross Sales - Sales Returns - Sales Discounts

= $39,900 - $1,520 - $767.60

= $37,612.40

Ozark Merchandisers Income Statement  

Net Sales Revenue                                     $37,612.40

Cost of Goods Sold ($21,200 - $920)        $20,280

Gross Profit                                                  $17,332.40

Selling and Administrative Expenses         $4,200

Income from Operations                             $13,132.40

Other Income  

Gain on sale of land                     $1,250  

Interest Expense                         ($360)         $890

Net Income                                                $14,022.40

Under Finance activities the interest expense is $360 in the statement of cash flow.

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3 years ago
________ refers to how people make decisions in a lottery or with uncertainty. People do not generally make expected value decis
allsm [11]

Answer:

The correct answer is c. Prospect theory.

Explanation:

Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.

Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.

4 0
2 years ago
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for
LenaWriter [7]

Answer and Explanation:

The computation of given question is shown below:-

                                     <u> Hi-Test Company</u>

                            <u>Weighted-average method</u>

                                                              <u>Equivalent units</u>

<u>Particulars                            Physical units  Material  Conversion costs</u>

Units to be accounted for

Beginning work-in-progress    2,000

Production started                    28,000

Total units                                  30,000

Units accounted for:

1. Completed and transferred

out                                             23,000        23,000        23,000

                                                                 (23,000 × 100%)

Ending work-in-progress          7,000          7,000           2,800

                                                               (7,000 × 100%) (7,000 × 40%)

2. Total units                             30,000         30,000       25,800

                                           <u>Materials   Conversion costs  Total costs</u>

<u>Costs to account for:</u>

Beginning work in

progress                              $45,000        $56,320               $101,320

                                                  ($25,600 + $30,720)

Costs added during

period                                  $375,000      $341,000            $716,000

Total costs                           $420,000     $397,320            $817,320

÷

Total equivalent unit

of production                         $30,000      $25,800

3. Cost per equivalent unit   $14.00         $15.40

Cost accounted for

4. Completed and transferred

out                                         $322,000     $354,200         $676,200

                                      (23,000 × $14.00) (2,800 × $15.40)

7. Ending work in progress   $98,000        $43,120            $141,120

                                    (30,000 × $14.00) (25,800 × $15.40)

Total cost                                $420,000     $397,320         $817,320

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Answer:

D

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