Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 12P
Emery Manufacturing Company produces component parts for the farm equipment industry and has recently undergone a major computer system conversion. Jake Murray, the controller, has established a troubleshooting team to alleviate accounting problems that have occurred since the conversion. Jake has chosen Gus Swanson, assistant controller, to head the team that will include Linda Wheeler, cost accountant; Cindy Madsen, financial analyst; Randy Lewis, general accounting supervisor; and Max Crandall, financial accountant.
The team has been meeting weekly for the last month. Gus insists on being part of all the team conversations in order to gather information, to make the final decision on any ideas or actions that the team develops, and to prepare a weekly report for Jake. He has also used this team as a forum to discuss issues and disputes about him and other members of Emery’s top management team. At last week’s meeting, Gus told the team that he thought a competitor might purchase the common stock of Emery, because he had overheard Jake talking about this on the telephone. As a result, most of Emery’s employees now informally discuss the sale of Emery’s common stock and how it will affect their jobs.
Required:
Is Gus Swanson’s discussion with the team about the prospective sale of Emery unethical? Discuss, citing specific standards from the code of ethical conduct to support your position. (CMA adapted)
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Sannah Cookies and Bakery owns and operates seven bakeries shop in several location situated at Kedah. The company have done well and is planning to develop several business information systems including payroll, sales and inventories to increase the company’s performance and efficiency. Miss Sofea has been appointed to manage the new project development for the systems. After the system prioritization analysis has been conducted, Miss Sofea decided and approved by the management to start with the implementation of the payroll system.
Ahmed, the system analyst has completed the system design specification and architecture issues. Now, he is ready to address the implementation tasks. He needs to prepare the system testing schedule. Miss Sofea reminded him,
“Make sure you include a large number of error in the test data. You know users are bound to make mistakes. We need to design built-in safeguards that will catch the errors and either fix them automatically or alert the user to the…
Jade Ltd is now considering how to obtain a computer software. The director of Jade Ltd has noticed that over the last 20 years, many companies have spent a great deal of money internally developing new intangible assets, such as software. You have been asked by the director to provide your advice on the accounting treatments of the two possibilities below:
(i) Employ its own programmers to write software that the company will use
(ii) Purchase computer software externally, including packages for payroll and general ledger.
Required:
In accordance with IAS 38 / AASB 138 Intangible Assets, discuss whether internally developed intangible assets should be recognised, and explain the differ in the accounting treatments for the two possible options.
Chapter 1 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 1 - What is cost management, and how does it differ...Ch. 1 - How do cost management and financial accounting...Ch. 1 - Identify and discuss the factors that affect the...Ch. 1 - What is a flexible manufacturing system?Ch. 1 - Prob. 5DQCh. 1 - What is the difference between a line position and...Ch. 1 - The controller should be a member of the top...Ch. 1 - Prob. 8DQCh. 1 - What is the role of cost management with respect...Ch. 1 - Prob. 10DQ
Ch. 1 - What is business ethics? Is it possible to teach...Ch. 1 - Firms with higher ethical standards will...Ch. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - What are the two parts to the CMA examination?...Ch. 1 - Classify each of the following actions as either...Ch. 1 - Hepworth Communications produces cell phones. One...Ch. 1 - Prob. 3ECh. 1 - Consider the following thoughts of a manager at...Ch. 1 - Bill Christensen, the production manager, was...Ch. 1 - Each of the following scenarios requires the use...Ch. 1 - Prob. 7ECh. 1 - Lily Shultz is a junior majoring in hotel and...Ch. 1 - John Biggs and Patty Jorgenson are both cost...Ch. 1 - Emily Henson, controller of an oil exploration...Ch. 1 - Prob. 11PCh. 1 - Emery Manufacturing Company produces component...Ch. 1 - Prob. 13P
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