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Les Pulaski Case

Satisfactory Essays

Discussion 3

Les Pulaski, the supervisor of a new division of Innovation Corporation, received annual bonus based upon the number of sales that exceeds the breakeven point of the company (Crosson & Needles, 2014). She was given bonus for the mentioned year as well. But, a review of the sales for that year confirmed that 7,500 units were returned by the customer to the company. These returned were included when calculating her bonus. Researching further into this situation, she found out that the returned products were labeled as overhead expense and the cost for the 7,500 units were charged to the overhead account (Crosson & Needles, 2014). Due to this accounting error, it appeared that the sales of the product exceeded the breakeven point

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