Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Chapter 10, Problem 2TP
You are a
A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract?
B. Explain recommendations to control risk that would you suggest after reviewing the contract.
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The Gray Company has a staff of five clerks in its general accounting department. Three clerks who work during the day perform sundry accounting tasks; the two clerks who work in the evening are responsible for (1) collecting the cost data for the various jobs in process, (2) verifying manufacturing material and labor reports, and (3) supplying production reports to the supervisors by the next morning.
The salaries of these two clerks who work at night should be classified as:
A) Period costs.
B) Direct costs.
C) Product costs.
D) Indirect costs.
E) Variable Costs.
Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company.
II. Discussion :
a. As an accountant of the Al Rahim clothing Company, prepare a report of the Income Statement and Balance Sheet.
b. Discuss the differences between the Straight Line Method of Depreciation and Diminishing Balance Method of Depreciation. Give examples.
Assume you are a newly appointed accountant in a local fashion Company named Al Rahim clothing Company based in Oman. Currently, the Company has five different departments include Accounting and Finance, Marketing, Human Resources, Information Technology and Sales & Distribution. Managers in each department are given the authority regarding operational decisions, and their performance is measured on the Company’s profit, and all the other employees receive the fixed salary package. You have been asked to answer the following tasks in preparation for the assignment that you will perform internally for the Company.
a. Explain the meaning of Accounting Standards and discuss its main objectives.
b. Discuss the difference between Financial Accounting and Management Accounting.
c. Discuss the differences between the Straight Line Method of Depreciation and Diminishing Balance Method of Depreciation. Give examples.
Chapter 10 Solutions
Principles of Accounting Volume 2
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