Using MIS (10th Edition)
Using MIS (10th Edition)
10th Edition
ISBN: 9780134606996
Author: David M. Kroenke, Randall J. Boyle
Publisher: PEARSON
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Chapter 6.3, Problem 4EGDQ

a.

Explanation of Solution

“Yes”, the amount $200,000 is spending on five days for Alliance’s partners and their spouses seems excessive and this personal excessiveness do not control the ethical nature of Alliance’s act.

Reason:

According to categorical imperative and utilitarian perspective, Alliance’s meeting expenses and their partner’s distributions sound excessive...

b.

Explanation of Solution

“Yes”, Earning 74% as gross marginal profit may seems excessive.

Reason:

  • Since they moved their data storage and it’s processing from their own Web farm to “cloud”, they reduced their internal costs...

c.

Explanation of Solution

From given semiannual distributions $1M, $3M or $5M, nothing seems excessive.

  • By using cloud, Alliance reduced their in-house operational cost up to 64%. Hence they gained 74% profit. It seems excessive...

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As of the time of writing, Damon Davis was completing out the paperwork for Drano Plumbing. He estimated a $50,000 net profit would be made. He counted the columns of the balance sheet and knew how much was in the credit column ($300,000) and how much was in the negative column ($400,000). What, in your opinion, was the most plausible reason for the discrepancy in the results? What should he do next to identify the issue's cause if this wasn't the cause of the issue?
Damon Davis was finalizing the paperwork for Drano Plumbing. He projected a net profit of $50,000. When he added up the columns on the Balance Sheet, he saw that the debit column was equivalent to $400,000 and the credit column was equal to $300,000. Which of the following was the most probable explanation for the mismatch in results? If this was not the cause of the issue, what should he undertake to ascertain its origin?
Damon Davis was finalising Drano Plumbing's paperwork. He projected a $50,000 net profit. When he added up the columns on the Balance Sheet, he saw that the debit column amounted to $400,000 and the credit column amounted to $300,000. What was the most probable cause of the outcome discrepancy? If this was not the cause of the issue, how should he proceed to ascertain its origin?
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