What are some of the signs that a company lacks controls?
What will be an ideal response?
Some signs that a company lacks controls:
• Lax top management-Senior managers do not emphasize or value the need for controls, or they set a bad example.
• Absence of policies-The firm's expectations are not established in writing.
• Lack of agreed-upon standards-Organization members are unclear about what needs to be achieved.
• "Shoot the messenger" management-Employees feel their careers would be at risk if they reported bad news.
• Lack of periodic reviews-Managers do not assess performance on a regular, timely basis.
• Bad information systems-Key data are not measured and reported in a timely and easily accessible way.
• Lack of ethics in the culture-Organization members have not internalized a commitment to integrity.
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If Ash Company had sales during the year of $10,000,000, an average accounts receivable of $2,000,000, and net income of $500,000, its accounts receivable turnover ratio would be 0.25
a. True b. False Indicate whether the statement is true or false
Describe how the administrative model of decision making differs from the classical model and explain the three concepts on which the administrative model is based.
What will be an ideal response?
Wanger, Inc., manufactures and sells two products: Product G1 and Product F2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct G1800 9.0 7,200 Product F2800 11.0 8,800 Total direct labor-hours 16,000 The direct labor rate is $15.30 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct G1$100.50 Product F2$292.00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead
CostExpected Activity???Product G1Product F2TotalLabor-relatedDLHs$732,480 7,2008,80016,000Machine setupssetups 53,809 400300700Order sizeMHs 600,525 3,8003,7007,500 $1,386,814 The overhead applied to each unit of Product G1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) A. $866.76 per unit B. $780.12 per unit C. $380.33 per unit D. $830.79 per unit
A sale on March 21 with terms of n/10 eom is due to be collected by
a. April 30. b. March 31. c. April 10. d. April 1.