Accounting Case Essay - 1930 Words

Seligram, Inc.: Electronic Testing Operations 1. What caused the existing system at ETO to fail? 2. Calculate the reported cost of the five components listed in Exhibit 6 using: a. The existing system. b. The system proposed by the accounting manager. c. The system proposed by the consultant. 3. Which system is preferable? Why? 4. Would you recommend any changes to the system you prefer? Why? 5. Would you treat the new machine as a separate cost center or as a part of the main test room? Bridgeton Industries: Automotive Component Fabrication Plant 1. The official overhead allocation rate used in the 1987 model year strategy study at the Automotive Component and Fabrication Plant (ACF) was 435% of direct†¦show more content†¦(2) if the manifold product line is dropped. Explain any additional assumptions you make in preparing your estimated model year budgets. b. What will be the overhead allocation rate under the two scenarios? 6. Would you outsource manifolds from the ACF in 1991? Why, or why not? What more information would you want before reaching a final decision? Destin Brass Products Co. 1. Use the Overhead Cost Activity Analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for valves, pumps, and flow controllers. 2. Compare the estimated costs you calculate to existing standard unit costs (Exhibit 3) and the revised unit costs (Exhibit 4). What causes the different product costing methods to produce such different results? 3. What are the strategic implications of your analysis? Could the production process for flow controllers be changed in such a way to allow Destin Brass Products to reduce the unit cost of flow controllers? How would the change in the lot size for flow controller production affect unit costs? Has Destin Brass Products adopted the most profitable distribution system in the flow controller market? What actions would you recommend to managers at Destin Brass Products Company? 4. Assume that the interest in a new basis for cost accounting at Destin Brass Products remains high. In the following month, quantities produced and sold, activities, and costs wereShow MoreRelatedA Case Of Accounting Fraud1555 Words   |  7 Pagesmajor case of accounting fraud driven by the desire to build and protect one’s personal financial condition is the WorldCom debacle. Bernie Ebbers had to show continually growing net worth in order to avoid margin calls on his own WorldCom stock that he had pledged to secure loans. When WorldCom, the telecommunications giant, failed and was put into bankruptcy, the U.S. witnessed the largest accounting frauds in history. 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Introduction Management accounting in the recent daysRead MoreThe Case About Accounting Fraud At Worldcom1964 Words   |  8 Pagesthe analysis of the case about Accounting Fraud at WorldCom Group member: Weichuan Xu Miao zhou 1. What are the pressures that lead executives and managers to cook the books? Firstly, one of the pressure is the company’s goal that was made by the top executive Ebbers. There is an economic recession and the bubble collapse which make the conditions deteriorate in 2012. He thinks that the company should focus on being the NO.1 stock on Wall street rather than the company’s really good operationRead MoreAccounting Case : Tijuana Bronze Machine2779 Words   |  12 Pages Accounting Case: Tijuana Bronze Machine Name: Course: Professor: Date Due: Introduction Tijuana Bronze Machining was founded in San Diego, California in 1984 by its current president Herb Alpert. It specializes in the cutting of precious stones and the manufacture of pump parts, valves and flow controllers. 1. Exhibit 1a Product Cost Per Unit Valves Pumps Flow Cont Total Material ($) 16 20 22 58 Run Labor hrs 0.25 0.5 0.4 1.15 Machine hrs 0.5 0.5 0.2 1.2 Receiving O/H 0.1 0.3Read MoreAccounting (Managerial) 530 Portfolio Case Study978 Words   |  4 PagesAccounting (Managerial) 530 Portfolio Case Study Imagine you are applying to become a trainee in a management consulting company, Solutions Inc., which claims to deliver innovative solutions. They are looking for innovative employees who engage with their work. The selection process will be rigorous. You know you will be asked to submit reports based on questions regarding your knowledge of management accounting practice and strategic management accounting. To provide a context for the reportsRead MoreAccounting Microline Case1418 Words   |  6 PagesMemorandum To: Sharon Sonneborn From: Date: 9/9/2012 Re: Potential Acquisition of Garmin Ltd. And Subsidiaries Garmin Ltd is under consideration for acquisition by Mega Industries. As a result, an assessment of Microline’s financial condition and assessment is necessary to evaluate the company as a suitable candidate. Our team has prepared a memo stating Microline’s earning power potential , solvency position, and to which extent the companies financial statements reflect the true