aifi halwa is running a successful business in Nizwa. They are supplying halwa to different suppliers in Dakhliya Region. They want to be economical and efficient in their business. It means they have to Decrease non-productive work within the organization Increase non-productive activities within the organization Decrease production of the product Increase production without considering th

aifi halwa is running a successful business in Nizwa. They are supplying halwa to different suppliers in Dakhliya Region. They want to be economical and efficient in their business. It means they have to Decrease non-productive work within the organization Increase non-productive activities within the organization Decrease production of the product Increase production without considering th

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 89TA

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Abdulla is a manager in an organization and he is responsible to take the necessary steps to protect the environment in manufacturing process. What ethical work does his organization do?. choose correct answera.Makes the management increases manufacturing cost b.No benefits to the workers c.Loss by spending more by his action d.Produces environment friendly products
Which statements are TRUE? 1. Minimum wage laws check the problem of purchasing power of income and solve income inequality. 2. In developing countries, demographic transition was slower than in developed countries. 3. Rural-urban migration can be prevented primarily through provision of free education. 4. Agglomeration refers to the coming together of firms whose products are correlated in a location thus allowing for the coming together of their workers. 5. Prisoner’s Dilemma takes place when the actions taken by one firm gives the incentives for other agents to take similar action.
Ahmed owns Ahmed Manufacturing LLC based in Muscat. In deciding on several important business-related decisions, he has to deal with the following independent scenarios/statements: (i) All future costs are irrelevant in decision making (ii) A sunk cost is a cost that has already been incurred but that can be avoided at least in part depending on the action a manager takes. (iii) If a firm uses Machine hours as the allocation base and that it has low skilled laborers, a special order caused unplanned overtime. These could create UNFAVORABLE Fixed overhead Spending Variance. (iv) In a decision to drop a segment, the opportunity cost of the space occupied by the segment would be the profit that could be derived from the best alternative use of the space. (v) The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is the product's contribution margin. For each of the scenario/statement (i) to (v) above, STATE your agreement OR…
Consider the following conversation between Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified public accountant: Gary: Donna, we have a real problem. Our operating cash is too low, and we are in desperate need of a loan. As you know, our financial position is marginal, and we need to show as much income as possibleand our assets need bolstering as well. Donna: I understand the problem, but I dont see what can be done at this point. This is the last week of the fiscal year, and it looks like well report income just slightly above breakeven. Gary: I know all this. What we need is some creative accounting. I have an idea that might help us, and I wanted to see if you would go along with it. We have 200 partially finished machines in process, about 20% complete. That compares with the 1,000 units that we completed and sold during the year. When you computed the per-unit cost, you used 1,040 equivalent units, giving us a manufacturing cost of 1,500 per unit. That per-unit cost gives us cost of goods sold equal to 1.5 million and ending work in process worth 60,000. The presence of the work in process gives us a chance to improve our financial position. If we report the units in work in process as 80% complete, this will increase our equivalent units to 1,160. This, in turn, will decrease our unit cost to about 1,345 and cost of goods sold to 1.345 million. The value of our work in process will increase to 215,200. With those financial stats, the loan would be a cinch. Donna: Gary, I dont know. What youre suggesting is risky. It wouldnt take much auditing skill to catch this one. Gary: You dont have to worry about that. The auditors wont be here for at least 6 to 8 more weeks. By that time, we can have those partially completed units completed and sold. I can bury the labor cost by having some of our more loyal workers work overtime for some bonuses. The overtime will never be reported. And, as you know, bonuses come out of the corporate budget and are assigned to overheadnext years overhead. Donna, this will work. If we look good and get the loan to boot, corporate headquarters will treat us well. If we dont do this, we could lose our jobs. Required: 1. Should Donna agree to Garys proposal? Why or why not? To assist in deciding, review the corporate code of ethics standards described in Chapter 1. Do any apply? 2. Assume that Donna refuses to cooperate and that Gary accepts this decision and drops the matter. Does Donna have any obligation to report the divisional managers behavior to a superior? Explain. 3. Assume that Donna refuses to cooperate; however, Gary insists that the changes be made. Now what should she do? What would you do? 4. Suppose that Donna is 63 and that the prospects for employment elsewhere are bleak. Assume again that Gary insists that the changes be made. Donna also knows that his supervisor, the owner of the company, is his father-in-law. Under these circumstances, would your recommendations for Donna differ?
A local coffee shop has two major product lines—drinks and pastries. If the manager allocates common costs on any objective basis discussed in this chapter, the drinks are profitable, but the pastries are not. The manager is concerned that the supervisor at corporate headquarters will drop the pastries. The manager is concerned because a relative, who is struggling to make a go of a new business, supplies pastries to the coffee shop. The manager, therefore, decides to allocate all common costs to the drinks because “Drinks can afford to absorb these costs until we get the pastries line on its feet.” After assigning all common costs to drinks, both the drinks and pastries product lines appear to be marginally profitable. Consequently, corporate headquarters decides to continue the pastries line. What can we do to boost pastry sales?
A local coffee shop has two major product lines—drinks and pastries. If the manager allocates common costs on any objective basis discussed in this chapter, the drinks are profitable, but the pastries are not. The manager is concerned that the supervisor at corporate headquarters will drop the pastries. The manager is concerned because a relative, who is struggling to make a go of a new business, supplies pastries to the coffee shop. The manager, therefore, decides to allocate all common costs to the drinks because “Drinks can afford to absorb these costs until we get the pastries line on its feet.” After assigning all common costs to drinks, both the drinks and pastries product lines appear to be marginally profitable. Consequently, corporate headquarters decides to continue the pastries line. Required How would you recommend the manager allocate the common costs between drinks and pastries? You are the assistant manager and have been working with the manager on the allocation…
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