Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Molly Highway is the manager of the repairs and maintenance department of JG Industries. She is responsible for preparing his department's annual budget. Most

image text in transcribed
2. Molly Highway is the manager of the repairs and maintenance department of JG Industries. She is responsible for preparing his department's annual budget. Most managers in the company inflate their budget numbers at least ten percent (10 % ) because their bonuses depend by how much below budget their departments operate. Highway turned in the following information for her department's 2018 budget to the company's budget committee: Budget 2017 20,000 80,000 Actual 2017 Budget 2018 24,000 Supplies Labour Utilities 16,000 82,000 8,000 96,000 10,200 15,000 8,500 Tools 12,500 9,000 25,000 Handcarried 16,400 30,000 equipment Cleaning materials Miscellaneous 4,600 4,200 5,520 2,400 2,000 2,100 TOTALS 152,600 137,700 183,120 Because the figures for 2018 are twenty percent (20 % ) above those in the 2017 budget. The budget committee questioned them. Highway defended them by saying that she expects a significant increase in activity in his department in 2018. Required: What do you think are the real reasons for the increase in the budgeted amount? What ethical considerations enter into this situation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Strategies For Business Decisions

Authors: Ronald Hilton, Michael Maher, Frank Selto

3rd Edition

0072830085, 978-0072830088

More Books

Students also viewed these Accounting questions