John Biggs and Patty Jorgenson are both cost
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What should John do? Describe how you would deal with his ethical dilemma (considering the IMA code of ethics in your response).
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Chapter 1 Solutions
Cornerstones of Cost Management (Cornerstones Series)
- Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates’s payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions—payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. Tan considers this suggestion, and she lists the following items relating to outsourcing payroll accounting: The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced. Duck Associates’s bookkeeper would spend half her time preparing the weekly payroll input form that is given to the…arrow_forward> Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates's payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions-payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. meniups/l Tan considers this suggestion, and she lists the following items relating to out- sourcing payroll accounting: a. The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced. b. uck Associates's bookkeeper would spend half her time preparing the weekly payroll input form that…arrow_forwardAjmal and Mustafa work at the Batol Manufacturing Company. Ajmal is manager of the machine shop in the company’s factory; Mustafa is manager of the equipment maintenance department. The men had just attended the monthly performance evaluation meeting for plant department heads. These meetings had been held each month since Sara Vali, the president’s daughter, had become plant manager a year earlier. As they were walking, Ajmal spoke: “Boy, I hate those meetings! I never know whether my department’s accounting reports will show good or bad performance. I’m beginning to expect the worst. If the accountants say I saved the company a dollar, I receive praise,’ but if I spend even a little too much— I get in trouble. I don’t know if I can hold on until I retire.” Ajmal had just been given the worst evaluation he had ever received in his long career with the company. He was the most respected of the experienced machinists in the company. He had been with the company for many years and was…arrow_forward
- Arcadia Plastics follows the philosophy of transferring employees from job to job within the company. Management believes the job rotation deters employees from feeling that they are stagnating in their jobs and promotes a better understanding of the company. A computer services employee typically works for six months as a data librarian, one year as systems developer, six months as a database administrator, and one year in systems maintenance. At that point, he or she is assigned to a permanent position. Required: Discuss the importance of separation of duties within the information systems department. How can Arcadia Plastics have both rotation and well-separated duties?arrow_forward2) Jane, a secretary, was laid off. Her employer gave her three weeks notice. After two weeks, Jane realized that finding another job was going to be very tough, and she began to get bitter. Her son told her about a virus that had infected the computers at school. He had a disk infected with the virus. Jane took the disk to work and copied the disk onto the network server, which is also connected to the company’s mainframe. One month later, the company realized that some data and application programs had been destroyed.arrow_forwardFor the past 11 years, Elaine Wright has been an employee of the Star-Bright Electrical Supply store. Elaine is a very diligent employee who rarely calls in sick and staggers her vacation days throughout the year so that no one else gets bogged down with her tasks for more than one day. Star-Bright is a small store that employs only four people other than the owner. The owner and one of the employees help customers with their electrical needs. One of the employees handles all receiving, stocking, and shipping of merchandise.Another employee handles the purchasing, payroll, general ledger, inventory, and AP functions. Elaine handles all of the point-of-sale cash receipts and prepares the daily deposits for the business. Furthermore, Elaine opens the mail and deposits all cash receipts (about 30 percent of the total daily cash receipts). Elaine also keeps the AR records and bills the customers who purchase on credit.Point out any control weaknesses you see in the scenario. List some…arrow_forward
- Sara has just taken a job as the middle school assistant principal for an area school district. Prior to Chis, she was a teacher. She has received the following performance measurements for her first administrative job. Her first order of business is to determine if these performance measurements are short-term goals or long-term goals based on her individual situation. She has completed her administrative degree but has not yet worked as an administrator. Identify each of the following goals as short term or long term. A. Conduct teacher walk-throughs/observations/evaluations for teachers of grades 6 and 7. B. Assist the districts mission in seeking to educate all youth in the school district. C. Train to become a building instructional leader. Act as building administrator in the absence of the principal. D. Attend meetings with building principals and the administrative team when called to do so. E. Engage all students in a meaningful way, and support teachers and staff in providing rigor and relevance. Success of school-wide discipline and attendance policies and enforcement depends on a combination of creativity and sound pedagogy while adhering to district, state, and federal law, guidelines, and regulations. F. Facilitate and supervise all federal- and state-mandated drills (fire, lockdowns, tornado, others). G. Dress professionally. H. Assist the building principal in all job duties and responsibilities.arrow_forwardJennifer Caratini has recently accepted the job as the foodservice director for Techmar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifer’s role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an executive dining room, serving 100 to 200 meals per day. All of the meals are provided “free of charge” to the employees of Techmar. One of Jennifer’s first jobs is to prepare a budget for next year’s operations. In addition to the cost of food products and foodservice employees, what other expenses will Techmar incur by providing free meals to its employees? Since employees do not pay for their food directly, what will Jennifer likely use as the “revenue” portion of her budget? How do you think this number should be determined? In addition to her know-how as a foodservice director, what skills will Jennifer likely need as she interacts with the executives at Techmar who must approve her operating budget? For additional…arrow_forwardJennifer Caratini has recently accepted the job as the foodservice director for Techmar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifer’s role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an executive dining room, serving 100 to 200 meals per day. All of the meals are provided “free of charge” to the employees of Techmar. One of Jennifer’s first jobs is to prepare a budget for next year’s operations. In addition to the cost of food products and foodservice employees, what other expenses will Techmar incur by providing free meals to its employees? Since employees do not pay for their food directly, what will Jennifer likely use as the “revenue” portion of her budget? How do you think this number should be determined? In addition to her know-how as a foodservice director, what skills will Jennifer likely need as she interacts with the executives at Techmar who must approve her operating budget?arrow_forward
- Jennifer Caratini has recently accepted the job as the foodservice director for Technomar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifer's role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an executive dining room, serving 100 to 200 meals per day. All of the meals are provided "free of charge" to the employees of Technomar. One of Jennifer's first job is to prepare a budget for next year's operations. Question:Since employees do not pay for their food directly, what will Jennifer likely uses the "revenue" portion of her budget? How do you think this number should be determined? of her budget?arrow_forwardJennifer Caratini has recently accepted the job as the foodservice director for Technomar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifer's role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an executive dining room, serving 100 to 200 meals per day. All of the meals are provided "free of charge" to the employees of Technomar. One of Jennifer's first job is to prepare a budget for next year's operations.Question:In addition to her know-how as a foodservice director, what skills will Jennifer likely need as she interacts with the executives at Technomar who must approve her operating budget?arrow_forwardJennifer Caratini has recently accepted the job as the foodservice director for Technomar Industries, a corporation with 1,000 employees. As their foodservice director, Jennifer's role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an executive dining room, serving 100 to 200 meals per day. All of the meals are provided "free of charge" to the employees of Technomar. One of Jennifer's first job is to prepare a budget for next year's operations. 1. In addition to the cost of food products and food service employees, what other expenses will Technomar incur by providing free meals to its employees?arrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College