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Catalina works for a regional sales branch of a large pharmaceutical company. Individual employees as well as individual goals, he or she receives a large bonus check at the end of the year. Likewise, if all the sales reps meet their goals, the entire branch receives brand new equipment, vacation packages, and larger bonuses. It is two weeks until the end of the fiscal year, when reps report their sales. Every sales rep in the branch has met his or her individual sales goal, except Catalina; she is three sales short. A friend encourages her to report three additional sales and then, come next year, report that three of her sales had been cancelled. "There's a loophole in the company policy that makes it so they can't take away your bonus after you've already received it," her friend tells her. "Plus, if you don't meet your goal, none of us get new equipment or vacation. You'll ruin it for all of us!" Should Catalina report and then cancel those three sales so she and her coworkers can receive their bonuses?
Western State University uses job-cost records for various research projects. A major reason for such records is to justify requests for reimbursement of costs on projects sponsored by the federal government.
If investors are truly interested in knowing a company's future cash flows, why would they care about current earnings?
Provide examples from the manufacturing industry of:
Steckelberg Inc. produces and sells a single product. The selling price of the product is $150 per unit and its variable cost is $54 per unit. The fixed expense is $154,560 per month. The break-even monthly unit sales is ??
Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
What is the difference between a value-added and a non-value-added cost? Give an example of each. Participate in follow-up discussions by reviewing your classmates' posts and expanding upon what they have written regarding value-added and non..
One of the most important problems in dealing with inventory is the amount at which the inventory should be carried on the books. What are the items that should be included as inventory? Remember to consider purchase returns, purchase discounts, a..
What do you consider to be the most important thing for a forensic accountant to remember about evidence? Why?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
A chair manufacturer has two divisions: framing and upholstering. The framing costs are $100 per chair and the upholstering costs are $200 per chair. What is the minimum transfer price for this company?
Gordon died on January 1 and by his will left land with an adjusted basis of $60,000 and a FMV of $100,000 to Becky. Becky disclaims the property on December 31 of the year of death, when the land was still worth $100,000. Becky has made a gift (b..
A corporation had 50,000 shares of $20 per value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record this dividend is:
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