Capstone CaseQuestions- Caribbean Brewers

In preparation for the upcoming board meeting, the CFO has asked you to provide him witha report that addresses the following questions.Include your own quantitative analysesin the report, where appropriate, to support your responses to the questions.

1. To what extent, if any, are the costs of production rising?
2. Is JJ's assertion that the production facility is operating at least as efficiently as before the expansion correct?
3. Is the current performance measurement system for production personnel appropriate?If so, why?If not, what would you recommend for an alternative performance measurement system?
4. Given the wording in Figure 5 with respect to the taxation of related party transactions, to what extent is Caribbean Brewers vulnerable to tax reassessment?
5. What are the ethical implications of the majority shareholders' actions?As an accountant, what are your ethical responsibilities in this situation?

Reading Material

Caribbean Brewers: Transfer Pricing, Ethics and Governance Case Study