Chapter 01 – Cost Accounting: Information for Decision Making
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amount is so small that differential profit probably would not be the deciding factor.
1-36. (20 Min.) Cost Data for Managerial Purposes: Tom’s Tax Services.
a. The following differential costs would be incurred:
b. Since the addition of the customer would result in an increase of operating profits by
Chapter 01 – Cost Accounting: Information for Decision Making
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1-37. (20 Min.) Cost Data for Managerial Purposes––Budgeting
a.
b. The three items that we would investigate would be (a) utilities; (b) chocolate; and,
Chapter 01 – Cost Accounting: Information for Decision Making
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1-38. (20 Min.) Cost Data for Managerial Purposes––Budgeting
a.
b. The three items that we would investigate would be (a) eggs; (b) chocolate; and, (c)
Chapter 01 – Cost Accounting: Information for Decision Making
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1-39. (20 Min.) Cost Data for Managerial Purposes––Finding Unknowns:Quince
Products.
1-40. (20 Min.) Identifying Unethical Action – Appendix
a. We recommend that Accountant B be retained to help Quince Products with their
expansion plans. Accountant B has experience with small companies and growth.
Chapter 01 – Cost Accounting: Information for Decision Making
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1-41. (20 Min.) Cost Data for Managerial Purposes––Finding Unknowns
Chapter 01 – Cost Accounting: Information for Decision Making
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1-42. (20 Min.) Identifying Unethical Actions (Appendix)
Yes. This action would violate both the Integrity and Credibility Principles.
1-43. (20 Min.) Responsibility for Unethical Action
a. We can understand, but not justify, what Charles did. He was under considerable
pressure in both his professional and personal life and he probably felt that he had
no choice. The problem is that his behavior was unethical and illegal.