Use of absorption costing in terms of ethical ramifications

Assignment Help Financial Accounting
Reference no: EM131219527

Absorption costing and other methods make it possible to manipulate operating income raising some serious ethical concerns. Construct an argument either for or against the use of absorption costing (or similar methods) in terms of its ethical ramifications.

Reference no: EM131219527

Questions Cloud

Difference in financial reporting and management accounting : A friend has asked you for some advice: ‘My small business now makes a profit; I am only too aware of this, as I now face a big tax bill each year, when my tax accountant has prepared my annual accounts. What is the difference between financial repor..
Consider the three bond quotes : Consider the following three bond quotes: a Treasury bond quoted at 104:28, a corporate bond quoted at 96.35, and a municipal bond quoted at 100.75. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value..
Considering new project to manufacture widgets : DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $125,000. The cost of shipping and installation is an additional $10,000. The asset will fall into the 3-year MACRS class. The year 1- 4 ..
Items would be increase by transaction : A company received $75,000 cash from a bank loan that must be paid in three years. Which of the following items would be increase by transaction?
Use of absorption costing in terms of ethical ramifications : Absorption costing and other methods make it possible to manipulate operating income raising some serious ethical concerns. Construct an argument either for or against the use of absorption costing (or similar methods) in terms of its ethical ramific..
Transactions taking place in different chronological order : Brian Smith has been the champion of the Pacific Rim market within Products R'Us for the past few years. The emerging buying power in this sector has led to an increasing amount of business for Products R'Us. Smith was finding himself at a growing co..
Use of the existing mixing machine machine capacity : Your company makes three products in a single facility. Data concerning these products follow: The mixing machines are potentialy the constraints in the production facility. A total of 30,000 minutes are available per month on these machines. Direct ..
Discuss the differences in tax treatment : From the U.S. Tax Guide for Aliens, discuss the differences in tax treatment between U.S. citizens who earn foreign source income, the tax treatment of aliens, and resident aliens. Identify at least two (2) tax laws regarding either reporting income ..
What would the journal entry look like : Suppose Company A sells shoes that are manufactured by Company B. Company A and Company B made an agreement that Company A would sell at a minimum, 610 pairs of shoes every three months. Within these three months Company A sold 180 pair of shoes over..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Comparison of mutually exclusive projects based on

comparison of mutually exclusive projects based on eac.comparing investment criteria consider the following two

  What amount should the firm report as the current portion

The enacted tax rate is 29% for 2011 and 39% after. What amount should the firm report as the current portion of income tax expense for 2011.

  Prepare a stockholders equity section at december

Journalize the transactions and the closing entry for net income. Prepare a stockholders' equity section at December 31, 2015, including the disclosure of the preferred dividends in arrears.

  Reform of reimbursement systems for healthcare services

Reform of reimbursement systems for healthcare services provided to ambulatory patients began in 1992

  Post the adjusting entries into the general ledger

BUS 202 - Financial Accounting Assignment - Cimear's Hair Design. Make the adjusting entries for July 31 2012 in the general journal. Post the adjusting entries into the general ledger. Prepare an adjusted trial balance for July

  What was lion direct labor efficiency variance

Lion Company's direct labor costs for the month of January were as follow: What was Lion's direct labor efficiency variance?

  What is the current share price

Goulds Corp. pays a constant $7.85 dividend on its stock. The company will maintain this dividend for the next 12 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price?

  Determine basic earnings per share for the year

Evaluate the number of shares used to determine basic earnings per share for the year ended December 31, 2013.

  What would be shown as an operating cash flow

If its income tax expense was $80 million, what would be shown as an operating cash flow under the direct method?

  What is their yield to call

How many years would it take $50 to triple if you invested it in a bank that pays 8.25% per year and What's the future value of $2,500 after 5 years if the appropriate interest rate is 7.5%, compounded semiannually?

  Questionyuki age 45 at year-end has been contributing to a

questionyuki age 45 at year-end has been contributing to a traditional ira for years all deductible contributions as

  Which alternative should smokey choose assuming

Smokey Sims is 60 years old and has been asked to accept early retirement from his company. Which alternative should Smokey choose assuming that he is able to invest funds at a 6% rate?

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