A manager of a company is evaluated on the gross profit percentage of his department. To boost

Question:

A manager of a company is evaluated on the gross profit percentage of his department. To boost sales, in spite of potential higher uncollectible accounts expense and company policy, he unduly extends more credit. Comment on this tactic.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

College Accounting

ISBN: 978-1111528126

11th edition

Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille

See More Books

Question Posted: Oct 21, 2014 02:50 AM

See More Questions

The gross profit percentage reported on long-term construction contracts often varies from year to year. What is the major reason for this variation?
In an effort to boost sales in the current year, Roy's Gym has implemented a new program where members do not have to pay for their annual membership until the end of the year. The program seems to...
The gross profit percentage is multiplied by total sales to determine sales at cost The total sales at cost are deducted from beginning inventory plus purchases to determine ending inventory...
Why have some firms gone to voluntary benefits as opposed to discretionary benefits?
Suppose that the three-month forward Swiss franc to dollar rate is SFr 1.440 per $. The forecast for the three-month ahead spot exchange rate by Analyst A is SFrl.410 per $ and the forecast by...
If possible, solve the system of linear equations and check your answer. 0.2x 0.1y = 0.5 0.4x + 0.3y = 2.5
11. Suppose the stock price is $50, but that we plan to buy 100 shares if and when the stock reaches $45. Suppose further that = 0.3, r = 0.08, T t = 1, and = 0. This is a noncancellable limit...
Mr. Brooks is employed as a financial analyst by a large Canadian public firm located in Winnipeg. During 2018, his basic gross salary amounts to $63,000. In addition, he was awarded an $11,000 bonus...
What types of government audits exist?
Sometimes useful information might be lost, not because the medium on which it was stored deteriorated or was damaged, but because no device was available to retrieve the information. How could that...
Vermont Bicycle Touring, now known as VBT, was founded in 1971 when a college professor with a passion for bicycling took a group of six people on a weekend ride through Woodstock, Vermont. Today VBT...
American Eagle Outfitters, Inc., specializes in high-quality trendy clothing geared toward 15-to 25-year-olds. American Eagle Outfitters has over 1,100 mall-based stores nationwide and sells a large...
Will I ask questions about the nature of the work and challenges instead of asking about factors such as vacation time and personal leave time? LO.1
Solve (c) 8 WI n=1 5 cos n N5
- Pierce Company reported net income of $160,000 with income tax expense of $19,000 for 2020. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the...
ABC Company had the following results as of 12/31/2020: ABC's hurdle rate is 10% CONTROLLABLE REVENUE CONTROLLABLE COST CONTROLLABLE ASSETS CONTROLLABLE INCOME 21. What is the division's margin? A....
A gray kangaroo can bound across a flat stretch of ground with each jump carrying it 10 m from the takeoff point. If the kangaroo leaves the ground at a 20 angle, what are its (a) takeoff speed and...
Since 1900, many new theories in physics have changed the way that physicists view the world. Create a presentation that will explain to middle school students why Quantum Mechanics is important, how...
Which of the following are characteristics that would make mortgage-backed securities (MBSS) inappropriate for less sophisticated, conservative investors? I. The maturity of MBSs is quite variable...
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
Approximately how much value was lost as a result of the WorldCom collapse?
Complete a comparative income statement for Asher Co. for December 31, 2012, and December 31, 2013. (Round to the nearest hundredth of a percent asneeded.) 2013 2012 Net Sales Cost of Goods Sold...
From the following, prepare a common-size income statement for Tony Co. by converting the dollar amounts into percentages. (Round to the nearest hundredth of a percent.) Use net sales as100%. 2013...
From the following comparative balance sheet of Howe Co., prepare a common-size comparative balance sheet. (Round all percentages to the nearest tenth of apercent.) 2013 $210,000 490,000 $700,000...
Discuss American History
Your firm has developed a new lithium ion battery polymer that could enhance the performance of lithion ion batteries. These batteries have applications in many markets including cellphones, laptops,...
Need help analyzing statistical data 1. ANOVA) True or false: If we assume a 95% confidence level, there is a significant difference in performance generally across all groups. 2. (t-test) True or...

A manager of a company is evaluated on the gross profit percentage of his department. To boost

Question:

Step by Step Answer:

The managers actions are not appropriate They are ma...View the full answer

College Accounting

Students also viewed these Managerial Accounting questions