Jose Groves is the manager of the Repairs and Maintenance Department of Groves Industries. He is responsible for preparing his department's annual budget. Most managers in the company inflate their budget numbers by at least 10% because their bonuses depend on how much below budget their departments operate. Groves turned in the following information for his department's 20x8 budget to the company's budget committee:<\/p>
<\/p>
<\/p>
Budget 20x7 Actual 20X7 Budget 20x8<\/p>
<\/p>
Supplies 20,000 16,000 24,000<\/p>
Labour 80,000 82,000 96,000<\/p>
Utilities 8,500 8,000 10, 200<\/p>
Tools 12,500 9, 000 15,000<\/p>
Hand-carried equipment 25,000 16,400 30,000<\/p>
Cleaning materials 4,600 4,200 5,520<\/p>
Miscellaneous 2,000 2,100 2,400<\/p>
----------------- ------------- --------------<\/p>
Total 152,600 137,700 183, 120<\/strong><\/p> <\/p> Because the figures for 20x8 are 20% above those in the 20x7 budget, the budget committee questioned them. Gonzales defended them by saying that he expects a significant increase in activity in his department in 20x8.<\/p> <\/p> What do you think are the real reasons for the increase in the budgeted amounts?<\/p> <\/p> What ethical considerations enter into this situation?<\/p>",
"transcribed_text": "",
"related_book": {
"title": "Principles Of Finance",
"isbn": "979-8439388899",
"edition": "1st Edition",
"authors": "Julie Dahlquist, Rainford Knight",
"cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg",
"uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899",
"see_more_uri": ""
},
"free_related_book": {
"isbn": "1032057548",
"uri": "\/textbooks\/quality-service-management-a-guide-to-improving-business-processes-1st-edition-9781032057545-9781000587777",
"name": "Quality Service Management A Guide To Improving Business Processes",
"edition": "1st\u00a0Edition"
},
"question_posted": "2024-06-29 02:15:35",
"see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12",
"step_by_step_answer": "The Answer is in the image, click to view ...",
"students_also_viewed": [
{
"url": "\/when-bullet-fires-in-gun-the-explosion-subsides",
"description": "When a bullet fires in a gun, the explosion subsides quickly. Suppose the force on the bullet is F = (360 107t2s2) N unit the force becomes zero (and remains zero). The mass of the bullet is 3 g....",
"stars": 3
},
{
"url": "\/study-help\/psychology\/in-your-opinion-how-much-continuing-education-should-licensed-clinical-1983090",
"description": "In your opinion, how much continuing education should licensed clinical psychologists be required to undergo? What forms should this continuing education take (workshops, courses, readings, etc.)?",
"stars": 3
},
{
"url": "\/the-houston-corporation-acquires-machinery-from-the-south-company-in",
"description": "The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non-interest-bearing, five-year note on June 30, 2006. The note is due on June 30, 2011. The machinery has...",
"stars": 3
},
{
"url": "\/study-help\/questions\/prove-the-following-language-is-not-regular-x-1-9860558",
"description": "Prove the following language is not regular: { x 1 #x 2 # . . . #xk | k > = 0 , each xi in 1 , xi 6 = xj for all i 6 = j } . Hint: You ll want to pump down .",
"stars": 3
},
{
"url": "\/study-help\/questions\/thank-you-so-much-question-19-the-following-accounts-appeared-1674237",
"description": "Thank you so much Question 19 The following accounts appeared on the trail balance of Blossom Company at December 31, 2020. Notes Payable (short-term) Accumulated Depreciation - Bldg. Supplies...",
"stars": 3
},
{
"url": "\/study-help\/questions\/continue-mini-case-1-the-accounting-cycle-part-1-the-5603523",
"description": "Continue Mini Case 1 (the Accounting Cycle Part 1), the following information is available for FastForward in September that may need adjustments.[1] By the end of September, FastForward has provided...",
"stars": 3
},
{
"url": "\/study-help\/questions\/question-1-a-nurses-aide-alleged-that-on-august-22-4884529",
"description": "question 1 A nurse's aide alleged that on August 22, 2012, she was attacked while cleaning a resident's room by a male coworker who attempted to rape her. She was able to escape and reported the...",
"stars": 3
},
{
"url": "\/study-help\/questions\/karris-manager-suspects-that-the-batteries-being-produced-lately-dont-5328998",
"description": "Karri's manager suspects that the batteries being produced lately don't have enough voltage. the null hypothesis at 5% For a left-tailed test, the critical value of z so that a hypothesis test would...",
"stars": 3
},
{
"url": "\/study-help\/questions\/question-1-the-valuation-model-that-computes-the-current-value-2320094",
"description": "QUESTION 1 The valuation model that computes the current value of a stock by dividing next year's dividend by the net of the discount rate minus the dividend's growth rate is called the...",
"stars": 3
},
{
"url": "\/study-help\/questions\/should-the-packaging-be-postponed-to-dc-penang-electronics-pe-5423087",
"description": "Should the packaging be postponed to DC? Penang Electronics (PE) is a contract manufacturer that produces and packages private label products for several retail chains including Target, Best Buy,...",
"stars": 3
}
],
"next_back_navigation": {
"previous": "\/study-help\/questions\/down-under-products-sales-budget-for-the-next-four-months-4446866",
"next": "\/study-help\/questions\/kona-footwear-is-contemplating-if-it-should-continue-producing-sandals-4446868"
},
"breadcrumbs": [
{
"name": "Study help",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers"
},
{
"name": "Business",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business"
},
{
"name": "Accounting",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting"
},
{
"name": "Jose Groves is the manager of the Repairs and Maintenance Department of",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/jose-groves-is-the-manager-of-the-repairs-and-maintenance-4446867"
}
],
"skill_details": {
"skill_id": "9",
"skill_name": "Accounting",
"parent_id": "1"
}
}d": "1"
}
}