TASK 1: Cost Classification and Ethics The Sorrel Pharmaceuticals Corporation manufactures a variety of drugs that are marketed internationally. Inventories on May 31 and June 30 were as follows: May 31 June 30 Materials Inventory $354‚100 $327‚400 Work in Process Inventory 112‚600 116‚400 Finished Goods Inventory 138‚500 142‚800 Purchases of materials for June were $142‚600. Direct labor costs were incurred and computed on the basis of 27‚000 hours at $8 per hour. Actual overhead costs incurred
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risk Audit risk: risk that auditor has not uncovered a material misstatement in the financial statements Potential accounts at risk: Provision for compensation claims/litigation Inventory Accounts receivable Accounts payable Brand name PRACTICE EXAM 2‚ QUESTION 3‚ PART 1 (PP.240-241) Identify 5 business factors and explain their impact on risk of material misstatement Also identify account balance most affected. Business factor (i) Listed on stock exchange Explanation of impact Risk -
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company can allocate the costs incurred in the production of products or services in either a direct or an indirect manner. The direct costs can be defined as being the amount materials actually cost plus any other directly linked costs‚ such as labor‚ materials‚ electricity‚ labor for employee and management‚ machine depreciation) Production materials‚ machine or assembly wages. Labor and wages – the cost of obtaining‚ training and retaining labor is a significantly high cost which must be allocated
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decision-making authority to an agent. An example of such a relationship is when the owner of a company delegates the decision-making authority to the manager. The costs of divergent behaviour that arises as a result of the agency relationship are referred to as agency costs. Furthermore‚ Watts and Zimmerman (1978) developed the theory of positive accounting which is focused on the assumption that ‘all individual action is driven by self-interest and that individuals will act in an opportunistic manner to increase
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used to explain the Social and Environmental Accounting‚ and moreover critique voices are from the works of Marx or by the deep-green or feminist literatures (Deegan‚ 2002)‚ to some extent‚ systems-oriented theory and Positive Accounting Theory can list some hints. This essay will seek to explain the reasons why firms voluntary disclosure information by referring to Legitimacy theory‚ Stakeholder theory‚ institutional theory‚ and lastly Political Costs hypothesis respectively. 2. Legitimacy theory
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II. Accounting and Auditing in the Philippines T his chapter presents an overview of Philippine accounting and auditing arrangements. It provides context for the following chapters on professional infrastructure‚ accounting and auditing standards‚ accounting and auditing training‚ and government budgeting and accounting arrangements. The chapter comprises eight sections‚ as follows: Part One: Accounting 1 – Introduction – identifies historical factors that have influenced accounting arrangements
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Complete the following Practical Practice Problems in Chapter 3 of your textbook: * 3-1A‚ 3-8A‚ 3-9A * 3-12A‚ 3-15A‚ 3-16A 3-1A The biweekly taxable wages for the employees of Rite-Shop follow. FICA Taxes Employee No. | Employee Name | Biweekly taxable wages | OASSDI | HI | 711 | Castro‚ Manny | $493.28 | 30.58 | 7.15 | 512 | Corrales‚ Pat | 870.00 | 53.94 | 12.62 | 624 | Guitar‚ Joseph | 419.80 | 26.03 | 6.09 | 325 | Moore‚ Connie | 523.20 | 32.44 | 7
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CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-16 (15 min.) Sales budget‚ service setting. 1. |McGrath & Sons |2009 Volume |At 2009 |Expected 2010 |Expected 2010 Volume | | | |Selling Prices |Change in Volume | | |Radon Tests |11‚000 |$250 |+5% |11‚550
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AFFECTING ACCOUNTING PRACTICE IN NIGERIA AND THE WAY OUT Accounting Practice refers to the routine manner in which the day-to-day financial activities of a business entity are gathered and recorded. A firm’s accounting practice refers to the method by which its accounting policies are implemented and adhered to on a routine basis‚ typically by an accountant and/or auditor or a team of accounting professionals. In another context‚ an accounting practice is intended to enforce a firm’s accounting guidelines
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Arthur Andersen: Questionable Accounting Practices Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clarence DeLany. After 90 years of hard work‚ this accounting firm we become known as one of the Big Five largest accounting firms in the United States. Andersen set standards for the accounting profession and advanced new initiatives on the strength of its then undeniable integrity. By the 1980s‚ standards throughout the industry fell as accountancy firms struggled
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