Ethics and standard costs

Assignment Help Accounting Basics
Reference no: EM13757031

Ethics and Standard Costs

Farmer Frank's produces items from local farm products and distributes them to supermarkets. Over the years, price competition has become increasingly important, so Susan Kramer, the company's controller, is planning to implement a standard cost system for Farmer Frank's. She asked her cost accountant, Margaret Chang, to gather cost information on the production of blueberry preserves (Farmer Frank's most popular product). Margaret reported that blueberries cost $.75 per quart, the price she intends to pay to her good friend who has been operating a blueberry farm that has been unprofitable for the last few years. Because of an oversupply in the market, the price for blueberries has dropped to $.60 per quart. Margaret is sure that the $.75 price will be enough to pull her friend's farm out of the red and into the black.

Required:

Is Margaret's behavior regarding the cost information she provided to Susan unethical? Explain your answer.

Reference no: EM13757031

Questions Cloud

The proposed cyber security act : Review the May 2011 Cyber Security Legislative Proposal, the proposed Cyber Security Act of 2012, Executive Order (EO) 13636 Improving Critical Infrastructure Cyber security, and Presidential Policy Directive (PPD) 21 Critical Infrastructure Secur..
How turbulent politics of italy contribute to growth thought : How did the turbulent politics of italy contribute to the growth of reanaissance thought?
Compute the stress and strain in a steel rod of diameter d : Write a MAIN function and the following funcations to compute the stress and strain in a steel rod of diameter D (inches) and length L (inches) subject to the compress loads P of 10,000 to 1,000,000 pounds in increments of 100,000 pounds.
What are some of the challenges faced by indian government : What are some of the challenges faced by the Indian government?
Ethics and standard costs : Is Margaret's behavior regarding the cost information she provided to Susan unethical? Explain your answer.
What level of output should firm produce to maximize profits : Do you think the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed - What level of output should the firm produce to maximize profits?
Specify the nature structure and types of products of apple : Specify the nature, structure, and types of products or services of Apple, and identify two (2) key factors in the organization's external environment that can affect its success. Provide explanation to support the rationale
What war caused british to impose heavey taxes on colonist : What war caused the British to impose heavey taxes on the colonist in order to pay off war debt?
Compare and contrast sdlc and 2 other development models : When looking at the life span for the development of an application or system from the initial idea proposal through final deployment, there are several phases to accomplish. Several models examine the required phases along with tools to support e..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the annual depreciation expense

Compute the annual depreciation expense for 2006 and 2007, and book value at December 31, 2007, under the straight-line method.

  Find the gross profit margin for eachfind the inventory

the following data were taken from the financial statements of koura and makikoura inc maki incsales of

  To settle the debt doran agrees to accept from mann

mann inc. which owes doran co. 600000 in notes payable with accrued interest of 54000 is in financial difficulty. to

  Foreign exchange gain or loss

When a U.S. company purchases parts from a foreign company, which of the following will result in no foreign exchange gain or loss?

  What amount of ordinary business income is allocated

XYZ Corporation (an S corporation) is owned by Jane and Rebecca who are each 50% shareholders. At the beginning of the year, Jane's basis in her XYZ stock was $40,000. XYZ reported the following tax information for 2011.

  Singh and smythe is an architectural firm that provides

singh and smythe is an architectural firm that provides services for residential construction projects. the data

  Many companies have complained about sox and that it is

many companies have complained about sox and that it is costly specifically in this area. do you think companies have

  Sue the corporate controller has thus far been impressed

sue the corporate controller has thus far been impressed with your performance at the charlotte plant. she thinks it is

  The charter of a corporation provides for the issuance of

the charter of a corporation provides for the issuance of 100000 shares of common stock. assume that 45000 shares were

  January 2008 a young artist called michelangelo signed a

january 2008 a young artist called michelangelo signed a contract with a charity named art angels which supports young

  List the numbers of the foregoing transactions and opposite

the following expenditures relating to plant assets were made by devereaux company during the first 2 months of 2014.

  The alberts are considering buying another house their

the alberts are considering buying another house. their mortgage payments would increase by 500 to 1500 per month which

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