Indicate which principles are violated: A food company ordered a machine needed in the assembly line of its production department. Upon order, the machine was immediately listed as one of its assets.

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $2.70 to determine the bid price. Since our average cost is only $2.405 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides,…

A company signs a contract to manufacture a product. The contract includes installation and a maintenance agreement over the life of the product. The product cannot be operated without the installation. This company as well as other companies could provide the installation and maintenance. For this company, what is the number of performance obligation(s) in this contract? Enter 0, 1, 2, or 3.

Smith Manufacturing Company allows employees to purchase materials, such as metal and limber, for personal use at a price equal to the company's cost.  To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor.  Brian, an assistant cost accountant, then charges the employee an amount based on Smith's net purchase cost. Brian is in the process of replacing a deck on his home and has requisitioned lumbar for personal use, which has been approved in accordance with company policy.  In computing the cost of the lumber, Brian reviewed all the purchase invoices for the past year.  He then used the lowest price to compute the amount due to the company for the lumber.  The Institute of Management Accountants (IMA) is the professional organization for managerial accountants.  The IMA has established four principles of ethical conduct for its members: Honesty Fairness Objectivity Responsibility These…