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Ashford University ACC 206 Wk 4 DQ




Question;Wk;4 DQ;DQ 1 Activity-Based Costing and Other Cost Management Tools;Fraud Case 18-1. Complete all parts of the case and respond to at least two of;your classmates? postings.;Anu Ghai was a new production analyst at RHI, Inc., a;large furniture factory in North Carolina. One of her first jobs was to update;the activity rates for factory production costs. This was normally done once a;year, by analyzing the previous year's actual data, factoring in projected;changes, and calculating a new rate for the coming year. What Anu found was;strange. The activity rate for ?maintenance? had more than doubled in one year;and she was puzzled how that could have happened. When she spoke with Larry;McAfee, the factory manager, she was told to spread the increases out over the;other activity costs to ?smooth out? the trends. She was a bit intimidated by;Larry, an imposing and aggressive man, but she knew something wasn?t quite;right. Then one night she was at a restaurant and overheard a few employees who;worked at RHI talking. They were joking about the work they had done fixing up;Larry's home at the lake last year. Suddenly everything made sense. Larry had;been using factory labor, tools, and supplies to have his lake house renovated;on the weekends. Anu had a distinct feeling that if she went up against Larry;on this issue, she would come out the loser. She decided to look for work;elsewhere.;Requirements;1. Besides spotting irregularities, like the;case above, what are some other ways that ABC cost data are useful for;manufacturing companies?;2. What are some of the other options that Anu;might have considered?;DQ;2 Cost-Volume-Profit Analysis;Discuss how the following affect the break-even point


Paper#41156 | Written in 18-Jul-2015

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