erned by stronger new organization structure wi while bolstering what makes M Required me that you are McDonald's vice president of human who to are affected by the restructuring. The l undertake the restruct relations. Write a letter to the employees etter should explain why it was necessary for the company the ideas discussed in the section ing Trends in Managerial Accounting" of this chapter (Appen uring. Your explanation should refer to 10-5 Ethical Dilemma Product cost versus selling and administrative expens a Emerson is a proud woma with a problem. Her daughter has been accepted into a prestigious ams with pride, she is worried sick about how to pay for the school: as worked hard to support herself and her three children. She had to go need school. While Ms. Emerson be law is a single parent who h she heavily into debt to finance her own education. Even though she now has a g ood job, fa Wi mi continued to outpace her income and her debt burden is staggering rrow the money needed for her daughter's law school . She knows she t0 Ms. Emerson is the chief financial officer (CFO) of a small manufacturing company. She has just accepted a new job offer. Indeed, she has not yet told her employer that she will be leaving in a month. She is concerned that her year-end incentive bonus may be affected if her boss learns of her plans to leave. She plans to inform the company immediately after receiving the bonus. She knows her behavior is less than honorable, but she believes that she has been underpaid for a long time Her boss, a relative of the company's owner, makes twice what she makes and does half the work. Why should she care about leaving with a little extra cash? Indeed, she is considering an opportu- nity to boost the bonus Ms. Emerson's bonus is based on a percentage of net income. Her company recently introduced a new product line that required substantial production start-up costs. Ms. Emerson is fully aware that GAAP requires these costs to be expensed in the current accounting period, but no one else in the company has the technical expertise to know exactly how the costs should be treated. She is conside ing the start-up costs as product costs. If the costs are misclassified, net income will be uditors discover significantly higher, resulting in a nice boost in her incentive bonus. By the time the a the misclassification, M. Emerson will have moved on to her new job. If the matter is brought to the attention of her new oeer, she wili siaply plead ignorance. Considering her daughter's needs Ms. Emerson decides R is ! yi. war:-up costs as product costs Required sold will be equal to, less than, or greater than the number of units made. Write a brief paragraph explaining the logic that supports your answer Explain how the misclassification could mislead an investor or creditor regarding the company's a. Based on this information, indicate whether Ms. Emerson believes the number of units of product financial condition. c. Explain how the misclassification could affect income taxes d. Review the Statement of Ethical Professional Practice shown in Exhibit 10.19 and identify at least misclassification two ethical principles that 1s. Emerson's misclassification of the start-up costs violated. erned by stronger new organization structure wi while bolstering what makes M Required me that you are McDonald's vice president of human who to are affected by the restructuring. The l undertake the restruct relations. Write a letter to the employees etter should explain why it was necessary for the company the ideas discussed in the section ing Trends in Managerial Accounting" of this chapter (Appen uring. Your explanation should refer to 10-5 Ethical Dilemma Product cost versus selling and administrative expens a Emerson is a proud woma with a problem. Her daughter has been accepted into a prestigious ams with pride, she is worried sick about how to pay for the school: as worked hard to support herself and her three children. She had to go need school. While Ms. Emerson be law is a single parent who h she heavily into debt to finance her own education. Even though she now has a g ood job, fa Wi mi continued to outpace her income and her debt burden is staggering rrow the money needed for her daughter's law school . She knows she t0 Ms. Emerson is the chief financial officer (CFO) of a small manufacturing company. She has just accepted a new job offer. Indeed, she has not yet told her employer that she will be leaving in a month. She is concerned that her year-end incentive bonus may be affected if her boss learns of her plans to leave. She plans to inform the company immediately after receiving the bonus. She knows her behavior is less than honorable, but she believes that she has been underpaid for a long time Her boss, a relative of the company's owner, makes twice what she makes and does half the work. Why should she care about leaving with a little extra cash? Indeed, she is considering an opportu- nity to boost the bonus Ms. Emerson's bonus is based on a percentage of net income. Her company recently introduced a new product line that required substantial production start-up costs. Ms. Emerson is fully aware that GAAP requires these costs to be expensed in the current accounting period, but no one else in the company has the technical expertise to know exactly how the costs should be treated. She is conside ing the start-up costs as product costs. If the costs are misclassified, net income will be uditors discover significantly higher, resulting in a nice boost in her incentive bonus. By the time the a the misclassification, M. Emerson will have moved on to her new job. If the matter is brought to the attention of her new oeer, she wili siaply plead ignorance. Considering her daughter's needs Ms. Emerson decides R is ! yi. war:-up costs as product costs Required sold will be equal to, less than, or greater than the number of units made. Write a brief paragraph explaining the logic that supports your answer Explain how the misclassification could mislead an investor or creditor regarding the company's a. Based on this information, indicate whether Ms. Emerson believes the number of units of product financial condition. c. Explain how the misclassification could affect income taxes d. Review the Statement of Ethical Professional Practice shown in Exhibit 10.19 and identify at least misclassification two ethical principles that 1s. Emerson's misclassification of the start-up costs violated