Average of time estimated to complete a repair job

Assignment Help Accounting Basics
Reference no: EM13766280

Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead, the amount paid a mechanic is based on an industry average of time estimated to complete a repair job. The repair shop bills the customer for the industry average amount of time at the repair center's billable cost per hour. This means a customer can pay, for example, $120 for two hours of work on a car when the actual time worked was only one hour. Many experienced mechanics can complete repair jobs faster than the industry average. The average data are compiled by engineering studies and surveys conducted in the auto repair business. Assume that you are asked to complete such a survey for a repair center. The survey calls for objective input, and many questions require detailed cost data and analysis. The mechanics and owners know you have the survey and encourage you to complete it in a way that increases the average billable hours for repair work.

Required:

  1. Who are the stakeholders in this situation?
  2. What are the ethical consideration?
  3. How will you complete this assignment and why?

Reference no: EM13766280

Questions Cloud

Auditors and regulatory oversight : The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies have violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their comp..
Prepare classified statement of financial performance : Provide a Report to Management of X Limited Company giving advice based on your results from the ratios - Prepare classified Statement of Financial Performance
Advantages and disadvantages of incentive pay : List and explain the advantages and disadvantages of incentive pay, and describe how companies can overcome the disadvantages
Write a term paper on language development in children : Write a term paper on Language Development in Children. The Term Paper is to include a discussion, based on a minimum of three articles.
Average of time estimated to complete a repair job : Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead, the amount paid a mechanic is based on an industry average of time estimated to complete a repair job.
What is the companys cost of equity : The Down and Out Co. just issued a dividend of $2.46 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $30 a share, what is the company's cost of ..
Why does the new religion appeal to nwoye : Why does the new religion appeal to Nwoye? How do the missionaries attract new converts? What does Oberika mean when he says "Our clan can no longer act like one?"
Risk-free rate and market risk premium : Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of 0.8 and an expected return of 9.6 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.7 percent, the reward-to-risk ratios for stocks Y..
Prepare the payroll register for the pay period : a. Prepare the payroll register for the pay period. b. Prepare a schedule to show calculation for any payroll taxes.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Report of the income statement

Jill reported a net loss of $6 million for the year. What amount of loss should Jack report in its income statement for 2011 relative to its investment in Jill?

  Mchael smith your uncle is an inventor who has decided to

1 michael smith your uncle is an inventor who has decided to incorporate. uncle michael knows that you are an

  All purchases are paid as follows 20 two months after

all purchases are paid as follows 20 two months after purchase 55 in the folowwing month and 25 in the month of

  Prepare a graph showing behavior of maintenance costs

Prepare a graph showing the behavior of maintenance costs, andidentify the fixed and variable cost elements. Use 200 unitincrements and $1000 cost increments.

  Scott company purchased equipment for 250000 on october 1

scott company purchased equipment for 250000 on october 1 2014. it is estimated that the equipment will have a useful

  Explain the interest rate assumed by the debtor and creditor

Explain the interest rate assumed by the debtor and creditor

  On december 3 mack company sold 500000 of merchandise to

on december 3 mack company sold 500000 of merchandise to pickert co. terms 110 n30. the cost of the merchandise sold

  Explain how shaving 5% off the estimated direct labor hours

Explain how shaving 5% off the estimated direct labor hours in the base of the predetermined overhead rate usually results in a big boost in the net operating income at the end of the year.

  Vans company purchased a piece of equipment at the

vans company purchased a piece of equipment at the beginning of 2011. the equipment cost 860000. it has an estimated

  Analog computers needs to borrow 785000 from the midland

analog computers needs to borrow 785000 from the midland bank. the bank requires a 13 compensating balance. how much

  Schaefer company is in the process of adjusting and

schaefer company is in the process of adjusting and correcting its books at the end of 2010. the books are still open

  Explain accrual accounting why do generally accepted

explain accrual accounting? why do generally accepted accounting principles require accrual accounting? what is the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd