Case Management Accounting

Although maintaining the current plant- abundant aim Is probably non Illegal, its subsequence has one purpose to extract gain from goernment business. Doug knows the plant-wide rate Is not accurately assigning command processing overhead be to non-homogeneous Jobs and Is leave behinding to alter the assignments on an drumhead basis for purposes of instruction on insular- orbit jobs. Fundament altogethery, honorable behavior is concerned with choosing right over wrong. To knowingly overcharge governance for emerging business certainly seems so wrong.To strain overpricing knowing the new overhead order would to a greater extent than make up for any lost profits from the government sector through more competitive bidding in the private sector is a clear indication of greed. While managers excite an bargain to maximize profit and mete outholders wealth, this obligation mustiness be within honest boundaries In addition, the solution proposed by Doug Is not good as h e Is apply a plant-wide rate as be antenna for both private and government business but he uses segmental overhead rate to make balding prices competitive.This arises due to he attach to having twain producing sections, one intentness Intensive and the new(prenominal) is machine intensive. This is a violation of at least two major honorable standards integrity and objectivity. The labor intensive department generates lesser overhead than machine-intensive department. Furthermore, virtu solelyy wholly of their high-volume jobs are labor-intensive. The company is using a plant-wide rate based on their transport labor minute of arcs to assign overhead to all Jobs. As a result, the high volume, labor Intensive Jobs receive greater share of the machine intensive departments overhead than they sincerely deserve.This problem net greatly amend by switching to departmental overhead rates. But as most of the companys government contract work is done in the labor intensive dep artment and the department overhead will push pour down the cost on the government jobs, the company will lose receipts. Dual-pricing approach will be used. Plant-wide overhead rate approach for official records and departmental overhead rate approach for bidding in private sector business, which is a practice that is extremely unethical. 2. Tanya has an ethical obligation to communicate learning and should always make sure that ethical standards are upheld In the company.Tanya should first keep an eye on whether or not Gunderson has a merged code of conduct. She can pursue the avenues suggested by the code. Check the violations committed and how can you reference such violations. For example, If Tanya cannot persuade Doug to refrain from follow throughing his scheme, she should front her objections to Doughs needs to r all(prenominal) out on the higher management level. If no resoluteness is possible after appealing to all higher levels, the resignation may be the only b e option. Case 9-55 DRP Roger Jones bullion Budget Cash collection and funds available Less Cash disbursements Salaries BenefitsThere is more none going out than in that location is more money coming in. matu proportionalityn revenue to make up the insufficiency or cut down costs or he can implement both. Three approaches can be utilize to r for each one the goal of increasing revenue and cutting down costs. Alternative 1 Extend office hours so that a total of 40 hours are worked each week. This could cast up revenues by as more as $5,340. Based on a four-week month, the current revenue earned per hour is $166. 88($21 ,360/128). Thus, the total revenue outgrowth that is possible is hours). DRP.Jones would need to inform his assistants and receptionists of the change magnitude time ND indicate that each will receive a 15% affix in salary for the supernumerary time. The office is currently open for 34 hours per week. Benefits are primarily PICA, SEA and unemployment inde mnification benefits, and different insurance benefits would also increase. early(a) expenses that will possible increase with an increase in sales are alveolar consonant supplies, lab fees and utilities which is about 31% of the sales. The remaining expenses would be assumed as unbending expenses.In all ilklihood, this would require the receptionist to become pertain in assisting. This may not be possible without laying off the receptionist and hiring a person that has both sets of skills. Additionally, using the receptionist as an assistant would result in telephone abuses going unanswered and/or entree patients being ignored. C. Alternative 3 A third possibility is to increase the sluttish charged for the various dental services. assuming a variable cost ratio of 31% from Alternative 1, the increase in revenues needed to cover the $2,900 deficiency can be computed as follows 0. OR = $ 2,900 R = $ 2900/0. 69 R = $ 4,203 The increase would call for fees to increase an a verage of 19. 7%. Whether this increase is possible or not depends to nearly extent on how DRP. Jones charges compare with other dentists in the area. If some increase is possible, thence the increase could be combined with elements of the other two alternatives. For example, 10% increase in fees and working the extra hours per week, say Tuesday evening. I would expect DRP.Jones to be more likely accept a combination like the one Just mentioned rather than pass judgment any of the approaches in their pure form. The behavioral principles discussed in the chapter do have a role in this type of setting. DRP. Jones private goal must be in line with the goals of his professional organization, and he must have the motivation to achieve those goals. That is, however, a significant difference. DRP. Jones owns and manages the organization. To large extent, his goals must be done the same way as the organization.