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Please read the following scenario (attachment) and discuss the questions below:
Scenario:
Its reporting year ends December 31. The Chief Financial Officer (CFO) is concerned with having enough cash to pay the expected income tax bill because of poor cash flow management. On November 15, the purchasing department buys raw materials in anticipation of rapid growth in CD-ROM orders after the beginning of the year. The CFO tells Kathleen that he is going to record the purchase as Supplies Expense.
Please help Kathleen to address her concerns:
What motivation would the CFO have for demanding that the raw materials be recorded as Supplies Expense?
What ethical implications are there?
Cite at least one source to support your answers. Use APA to cite your source(s).
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Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
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Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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