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Direct Material, Direct Labor & Factory O/H (Acc 502 Asynmnet)

1735 words - 7 pages

QUESTION 1Ethics is the philosophical analysis of human morality and conduct; a system of conduct or behavior, moral principles. (Source: Concise Dictionary)Therefore, in this scenario there is lack of ethics present in the business. As the manager wants to gain only for himself from the losses of others by getting 15% increase in his salary if he convinces the employees that the no-pay-raise policy is justified which can be regarded as a fraud because his making others fool by justifying on the pay raise when the manager himself will be benefitted. Moreover, the owner is unfair towards the employees. If he needs to control costs than he should look for other techniques rather than being unfair to others by only increasing the salary of the manager. There should be bounding between the employees and employers and fair dealing should be made. The owner should be fair to everyone and treat all alike he should increase pay for all or not at all.Furthermore, in his business unethical behavior or lack of corporate social responsibility is practiced by comparison. The decision to behave ethically is a moral one, employees must decide what they think is the right course of action and is fair for everyone. This may involve rejecting the route that would lead to the biggest short term profit but such action is not practiced in the business therefore there wont be unity and unfair treatment for employees. If there was bounding than the manager would have thought about others as well and rejected the offer but he is only thinking about himself regardless of others losses which is simply being selfish and unfair to others hard work as well.QUESTION 2
Month

Kilogram of canned mutton

Water

January

117000

68700

February

72000

70050

March

110000

84000

April

65000

50000

May

90000

30000

June

125000

68100

July

80000

72300

August

85000

74850

September

71000

70200

October

123000

67350

November

130000

68800

December

150000

69000

VC/UNIT = (69000-50000) / (150000-65000)= 19000/85000=$0.22/KgVariable Cost = 0.22 x X= 0.22 x 150000=$33000Y = Fixed Cost + Variable Cost69000 = Fixed Cost + 3300036000 = Fixed CostY = $0.22x + 36000QUESTION 3Selling below total cost simply means selling below the price set on goods and services. Reasons for selling below total cost are due to expire of goods. When the goods are about to get expired and no one will buy them after it gets expired so it will be thrown away therefore, business firms sell at a more cheaper cost so that the product can be sold and there won't be any wastage of goods and the firm will earn at least some revenue.Moreover, because competition from other businesses. To attract customers to buy the product, business firms will sell at a very low price so that their goods will be sold and it will increase their sales therefore more cheaper price will attract a large some of customers because customers prefer to buy at a lower cost therefore...

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