Warranties are contingent liabilities; therefore, Navistar should have estimated the expenses and use accrual-basis accounting approach to record the warranty expense. The auditors should have looked at their warranty expense and unearned warranty revenue accounts to conclude if the numbers on the financial statements matched the numbers on the
ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.
Within the subsequent 40 expense reports, three additional exceptions were found. One exception (Sample No.11) was missing approval, and remaining two exceptions (Sample No.15 and No.45) were missing receipts, indicating the employee expense reporting process had systemic issues and was not in compliance with Schnitzer Steel Accounting Manual Section 300-10. No exceptions were found regarding reimbursement eligibility base on Accounting Manual Section 300-20.
Explain whether Style Ltd should or should not move towards an ABC system. Reference must be made to the business in question. Style Ltd should shift to an Activity-Based Costing (ABC) system, particularly given its prevalence in the manufacturing industry where it plays a pivotal role in enhancing the reliability of cost data (Kenton, 2023). Given Style Ltd's diverse hairdryer production involving complex activities, ABC's nuanced approach to capturing these intricacies makes it more suitable. Net profit per unit under traditional costing system: GEN MUK $ 120.10 $ 63.00 Net profit per unit under ABC system: GEN MUK $ 127.18 $ 78.53.
If Pure-Train sells extended warranties to its customers for a fee, it indicates that a contract is separately priced. This implies that the extended warranties provide a warranty protection or product services that are not included in the acquisition price of the product covered by the contract (FASB ASC 605-20-25-1). FASB also states that extended warranty provides “coverage against the risk of certain specified claim costs for a specified period” (FASB ASC 605-20-25-2). For example, if the customer requests a covered service to be performed on the product that needs repair or service costs, such claim costs are considered repair costs (FASB ASC 605-20-25-2). Under the new rules, revenue from extended warranty contracts should be recognized in income over the period of the contract (FASB ASC 605-20-25-3).
In agreement with company policy, Abby bills the full cost of the ordered materials, assuming there will be unused product. However, once there is an order for the unused product, the disposal charges is no longer a cost to Ace and therefore does not need to be passed to the customer. The cost of the product itself can now be allocated accordingly between the two cost estimates. George’s assessment includes double billing for a single material cost, as well as the disposal fee, which is not needed in order to inflate the bottom line. This now brings forth the ethical issue as double billing for a single cost and not removing unnecessary cost from the estimate in order to inflate profits.
One of the first things that needs to be addressed before any policies are put into place are how are violations reported and what happens when violations are reported? Violations can be reported in various methods. A person can call a toll-free number to report the violation. The violation can be reported via email or dropped in an ethics “drop box”. The final way an ethics violation can be reported is directly to immediate supervisor, department head, human resources person or member of the compliance team.
Introduction This report aims to provide guidance on a board of directors restructuring for De Buys & Sons in accordance with Section 72 of the 2008 Companies Act and the King IV Code. The report identifies the flaws in the current board structure and suggests one that is more in line with ethical standards. To ensure that the business follows moral and ethical business practices, it also calls for the creation of a social and ethics committee. The recommendations made in this report will promote ethical conduct and corporate governance and ensure that the company complies with relevant legislation. Issues with the current board structure
The most significant component of cash outflows in case of purchase option was the cost of the replacement spare engine. Our cash flows included the tax shield on depreciation, and maintenances costs associated with the purchase and use of the engine. We determined the after tax cash flows under both options, in case of Hong Kong Air purchase option, the after-tax cash flows are, cost of the V2500 spare engine, the tax shield on depreciation and maintenances costs and the after tax discount rate was used. In case of the lease option, the after-tax cash flows are; include; monthly rental at 8% of engine price, rate per flight hour, rate per engine cycle all over the period of the lease not less than 10 years.(ref) The discount rate used was the after tax cost of debt.
1. In Chapter 7, you learned that many technically inclined project management professionals have very poor financial cost management skills and that top management is usually more concerned with numbers as they relate to all associated costs and returns from IT investments. As a result, many organizations send their information technology employees for training and mentoring on practices such as cost estimating. Find a suitable program that would benefit such employees. What is the name of the program?
EXECUTIVE SUMMARY TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15 INTRODUCTION COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.
What do pro forma financial statements show? There are various things Pro forma financial statement shows but first, let’s understand the word pro forma which means a financial statement based on projection and assumption of what the business future would be to determine what should be happening now. Pro forma financial statement can be thought of as a “Projected results for financial statements in the future, given assumptions about what will happen in the meantime” (Siegel & Yacht, 2009, p. 81).
ABC can be used just as easily in service costing as in product
you may find that total amount of costs assigned to Regular model is $765.857,14 and $771.142,86 to Deluxe model. After final computations you can see that the cost of one unit of Regular model is $2,55 and cost of one unit of Deluxe model is $3,87. b) Determine the product costs and profits per
Table of Contents Abstract: 3 Introduction: 3 Functions of an Accounting Information System: 4 Literature Review: 4 The Role of Financial Statement in Managerial Decision Making: 6 Accounting Information System related to Decision-making process: 7 Accounting Information on Decision-making Process: 7 Conclusion: 9 References: 10 Abstract: This paper discussed the extended normative model and supported through a longitudinal study. It is exploring the roles of Accounting Information Systems in an organization facing financial stages. Many teams suffer the various crises in different types.
