these outsourced companies and organize the workflow (Kimmel‚ Weygandt‚ & Kieso‚ 2009). Why install the ABC System? Super Bakery’s management decided to implement an ABC system‚ because the business wanted to create a more accurate tracking system of the costs for each and every order. By using the ABC system the business could improve pricing. Super Bakery‚ Inc also suspected a wide variation of customers in different parts of the country (Kimmel‚ Weygandt‚ & Kieso‚ 2009). The author agrees that
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B.‚ Powers‚ M.‚ & Crosson‚ S. (2005). Principles of accounting. Contributed capital‚ p. 596. Boston: Houghton Mifflin Company. Warren‚ C.‚ Reeve‚ J.‚ & Fess‚ P. (2002). Accounting (20th ed.). Cincinnati: South-Western. Weygandt‚ J.‚ Kieso‚ D.‚ & Kimmel‚ P. (2005). Financial Accounting (5th ed.). New Jersey:John Wiley & Sons Inc.
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executives and the board of directors within a corporation must ensure that these internal controls are effective. The reliability and efficiency of the internal controls must be directed and supervised by the board of directors and corporate executives (Kimmel 345). Because the LJB Company is a small sized company in regards to the employee number‚ there should be a re-evaluation of the costs versus the benefits of being a publicly traded company. It would be best to know how the company would deal with
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000 per month in fixed operating expenses plus $2‚000 to lease equipment‚ which brings at total of $6‚000 in fix cost” (Kimmel‚ Weygandt & Kieso‚ 2009). However‚ in order for Snap Fitness to break even‚ it needs to have 300 members. With the “information provided above and our knowledge of CVP analysis‚ we will now estimate the amount of variable costs for Snap Fitness” (Kimmel‚ Weygandt & Kieso‚ 2009). The CVP analysis is important for Snap Fitness because “it is a critical factor in such
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to completely avoid unethical practices and behaviors. The most important element of unethical practices and behavior is opportunity for an employee to commit fraud the company has to create the opportunity for the employee to be able to succeed. (Kimmel‚ 2009) Greed and rationalization are the harder two to control within an organization. If the company does not have internal controls put in place to try and elude unethical behavior it is setting itself up for trouble. Some internal controls
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Comparative analysis looks at the financial operation of a business‚ investors are interested in the sustainable earnings of a business (main part)‚ when investors are interested in making comparisons of a company/business from period to period (Kimmel‚ Weygandt‚ & Kieso‚ 2011). The business world relies on several different types of comparisons to improve the decision making of financial information. Intracompany basis‚ Intercompany and Industry averages. Intracompany are comparisons within
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entries to the accounting department. This control measure helps to ensure timely recording of the transaction and contributes directly to the accuracy and reliability of the accounting records. (Kimmel‚ 341). The application of documentation procedures and physical control can be seen with the
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situations to reference since there was only one listed next to E1-5. However all the items listed should be on a balance sheet for it is defined as a financial statement that reports the assets‚ liabilities and owner’s equity at a specific date (Weygant‚ Kimmel & Kieso 2008). Now question E 1-4 would better suited the answer to the instructions: For each of the three situations‚ say if the accounting method used is correct or incorrect. If correct‚ identify which principle or assumption supports the method
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point. First‚ a cost-volume- profit (CVP) analysis is defined as "the study of the effects of changes in costs and volume on a company’s profits" (Kimmel‚ Weygandt‚ & Kieso‚ 2009). In the case of Tesla’s current state‚ it appears a proper CVP analysis was conducted because Tesla effectively overseeing production costs and keeping expenses low
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robbery‚ and unauthorized use. Internal control also ensures the accuracy and reliability of accounting records in the accounting process for a company (Weygandt‚ Kimmel‚ Kieso‚ 2008). The two primary goals of internal control are to safeguard a company’s assets‚ and to enhance accuracy and reliability of accounting records (Weygandt‚ Kimmel‚ Kieso‚ 2008). This system within a system has an important role on how well the accounting system works. The purpose of internal controls is to protect businesses
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