Accounting Essays

Atkinson (2005) suggests that the longer a computer sits in inventory, the more its value decreases. Thus, it is financially beneficial to supply customers with products as they are ordered. For every computer that remains in Dell’s warehouse for seven days, one percent of its value is lost. Atkinson (2005) conducted a case study using […]

This paper conducts an experimental study to test the effects on budgetary slack of two potential controls for opportunistic self-interest – reputation and ethics. In the experimental study the level of information asymmetry between the subordinate and the superior regarding productive capability is manipulated and the subordinate’s reputation and ethical concerns regarding budgetary slack are […]

Effective communication of costs is crucial when determining the selling price of a product. Management accountants play a key role in cost classification and assigning costs to cost objects in order to achieve this. According to Drury, product costs relate to goods that are purchased or produced for resale, as demonstrated in the case of […]

Despite potential disagreement, the progress and implementation of managerial accounting in the past three decades supports the notion that it is effective. Senior executives commonly use this phrase to suggest delegating responsibility to lower ranks and proactively monitoring business metrics, all to achieve desired objectives (Emiliani 2000). In today’s competitive information age, organizations need to […]

Part-I Over the years global business environment has gone through some massive changes. These changes are due to changes in socio-economic situations, changes in consumers’ demands, changes in technological environment, changes in political scenario etc. Today’s business environment is referred to as the modern business environment which is characterized by globalization, advanced technology, intense competition, […]

The C-V-P analysis is a useful forecasting as well as managerial control tool. This analysis technique expresses the relation between income, sales structure, costs, production volume and profits and includes break-even point analysis and profit forecasting procedure. These relations may be used by managers to make short term forecasts, to assess company performance and to […]

Given that sustainability reporting is not currently required of companies, what do you see as the possible benefits and disadvantages of sustainability reporting? Using the information in the case, the summary data reported in Tables 4 and 5, and Johnson & Johnson’s most recent sustainability report (available at http://www. jnj. com/connect/caring/? flash=true), what aspects of […]

During the last two decades, there has been considerable advancement in management accounting research. This investigation centers on three main areas: responsibility accounting, Balanced Scorecard (BSC), and Tableau de Bord (French). Each of these aspects will undergo thorough analysis, followed by a comparison between BSC and Tableau de Bord. Ultimately, this paper seeks to offer […]

Operating leverage can be determined by understanding the distribution of fixed and variable costs in a company’s operational framework. This measure is typically based on operating income to exclude the influence of financial leverage and taxes. Calculating operating leverage would be simple if the exact proportion of fixed and variable costs were known. To illustrate, […]

Project Management Accounting in an Amoeba Management Profit Center Setting Introduction A profit center is a when a responsibility center’s performance is measured in terms of a profit. Both departmental revenue and costs are accounted for. The resulting profit (or loss) directly affects the bottom line of a company’s overall financial performance. Any department, division, […]

For the first 3 weeks, I just ordered the weekly demand because the demand was low and we had enough inventory. When there was a spike and we had potential stock out, I realized that I needed to hold more safety stock, I just ordered 2 weekly demands for each week. When there was a […]

The purpose of the report is to discuss three main topics. First, it will explore the necessity of implementing a new management accounting system in order to improve department and store profitability by assessing return on sales and return on investment. Second, it will evaluate the possibility of hiring experienced managers to ensure optimal staffing […]

“ Management accounting has moved off from traditional transaction-based fiscal information to non-financial and futuristic information ” . Discourse the above statement, foregrounding the new functions of direction comptrollers and accounting in modern concern endeavors. Indeed, ‘management accounting has moved off from traditional transaction-based fiscal information to non-financial and futuristic information ‘ as highlighted by […]

  Management has established a code of conduct that includes rules regarding conflicts of interest for purchasing agents. Category: Assertion: Pervasive Waterfront has established a disclosure committee to review the selection of new accounting policies. Category: 4. 6, Assertion: DAO Accuracy and Valuation, DAO Classification and Understandability. c. Any computer program revision must be approved […]

The Prefab Sprout Company is a construction company which develops and constructs modular home enclosures in South Florida. Though being listed on the New York Stock Exchange (NYSE), it is still a family-run business with about 40% of the shares resting with the Warner family. This working paper provides a thorough analysis of Prefab’s internal […]

When a client fails to properly separate duties, the risk of theft of cash prior to recording increases. If an auditor suspects this may have occurred, there are certain audit procedures that can be employed in testing for it. These include investigating those responsible for customer orders, credit approval, invoice generation and accounts receivable records […]

Corporate culture and ethics are very important sources to sustain positive working environment in an organization. Based on the pattern that caused the fraud, the management style of HealthSouth is clearly practiced very authoritative which the reason for Richard’s orders fulfilled dutifully in order to partake in the fraudulent schemes. It clearly stated that the […]

Ted is a director in the Business Advisory and Assurance Services division of a national public accounting house. He has been given the occupation of pull offing the audit of Easy Clean. Co.  which provides industrial and domestic rug steam-cleaning services. Easy Clean has ne’er been audited. Therefore. Ted does non hold any prior-year working […]

Have you ever told a lie? In most causes after telling one small lie another lie follows. After time passes and the lies began to seem like the truth, you dig yourself into a pool of lies which eventually contradicts your first lie. The same truth happens to Nick Lesson and his 8-8-8-8-8 account. It […]

The study emphasizes the similarities between Enterprise Risk Management (ERM) and the balanced scorecard, a widely used strategic control system. Both of these systems are focused on achieving strategic objectives, indicating that risk management and performance management/strategic control systems have evolved in their definitions and perceptions. This article presents a case study of Tesco plc, […]

The Saks Fifth Avenue case study concentrates on the human aspects of internal controls. Of note are Saks’ zero-tolerance policy of employee theft, anti-harassment policy and complaint procedure. Also, the case study highlights control activities in a major retail store. Finally, it questions what an auditor’s role is concerning employee’s work environment. Question #1 In […]

Summary of the Sarbanes-Oxley Act The Sarbanes-Oxley Act (SOX) was enacted on July 30, 2002 to protect shareholders and the public from fraudulent business practices and accounting errors. It focuses on maintaining independence in auditing by requiring CEOs and CFOs to certify financial reports. The act enhances transparency in financial reporting and encourages accountability by […]