Management accounting

The business scandal that occurred at Fannie Mae Chocolate Industry was when they manipulated accounting to collect millions of dollars in underserved bonuses and deceive investors. They were fined for 400 million dollars. Fannie Mae struggled to emerge from an $11 billion accounting scandal.The penalty that was given for them was the largest penalty ever in a accounting fraud case.The company also agreed to limit the growth of its multibillion-dollar mortgage holdings. Fannie Mae never admitted…

Question 5 The overhead rate is the total of indirect cost for a specific reporting period, divided by an allocation measure. Overhead rate is the percentage that we get after comparing to the total overhead expenses with the total expenses. Overhead rate has differentiate into 2 types which is blanket overhead rate (single overhead rate) and departmental overhead rate. Blanket overhead rate (single overhead rate) is the most simplistic tradisional costing system. It assign indirect cost…

Exercise 1 Difference between waste and value-added activities Value added activities: Any activity which add value to the product in terms of material, function, utility, shape etc. is a value-add activity and those which does not directly contribute to the overall value of the product is a non-value add activity Examples 1. Assembly of an engines to aircraft carrier is a value-added activity 2. Increasing the memory from 64 gigs to 128 or 256 gigs in new iPhone is a value adding Waste…

of 2 Toshiba’s Accounting Scandal Toshiba is a leading Japanese multinational conglomerate which provides diversified products and services such as electronics, home appliances, information & communications systems, medical equipment and power systems. The company was founded in 1875 to pioneer in high technology not only in Japan but also anywhere in the world (“About Toshiba”). Unfortunately, an independent investigation had revealed one of Japan’s biggest accounting scandals in…

He was introduced to the carpet cleaning industry at the age of twelve by his mother, who worked as a telephone solicitor for a small carpet cleaning firm. Due to the lack of barriers to entry in this industry (no licensing requirements, no apprenticeships to be served and only minimal start-up capital needed), it is not hard for anyone to start a carpet cleaning company. But at the same time, no barriers to entry meant that there was a cutthroat competition within the industry and it was not…

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6.1 Case study There are two classifications of costs associated with construction projects, direct costs and indirect costs. Direct costs include the labor, material and equipment operating costs necessary to put work in place. Indirect costs include supervision, job and home office overhead, profit, financing, and the cost of inflation. Direct costs can be allocated to each activity on the project. Indirect costs, on the other hand, cannot be realistically prorated and assigned to each…

After HealthSouth publicly became a traded company, their earnings were being escalated falsely. Management was under a huge amount of stress because they did not meet the standards of their business financially. When the company reported their earnings, they overstated them purposely. It fell under, “Income Before Income Taxes.” (Zmuda). Falling under the motivation of the fraud triangle, their sole motive was to meet their financial needs. Since they did not, between the years of 1999 and 2002…

A company should particularly take its Accounting Information System seriously, since IT will consume a major part of time and cost. According to KPMG report in 2008, “Worldwide, companies have spent considerable time, money, and other resources to convert to IFRS—and many of them report that a…

they need to ensure that those information are reliable and can be trusted. Before the negotiation starts, the conflicts happened between both managers should be eliminated in order to avoid the decision made is affected by their conflicts. The top management of W Industries should intervene the negotiation if it is necessary. In addition, W Industries should take into account the following factors after the negotiation stage has completed. For instance, the decision made might be influenced by…