Cost and Management Assignment Example | Topics and Well Written Essays - 2000 words

Cost and Management - Assignment Example ant, or a management accountant must â€Å"perform their professional duties in accordance with relevant laws, regulations, and technical standards (1996, 23).† Lis proposal clearly violates laws, regulations and technical standards by incorporating her personal assets in order to increase the companys assets, as well as making her employee shoulder temporarily a part of the expenses in order to increase the companys income. Aside from violating the standard of competence, Lis proposal also violates the standard of integrity, which according to Horngren, Bamber & Stratton, accountant should â€Å"refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically [and to] refrain from engaging in or supporting any activity that would discredit the profession (1996, 23).† The philosophy behind accounting is to come up with reports that will show the performance of the company to people with vested interests to the company, such as the government, for the taxes, and the companys investors such as shareholders and creditors. With accounting, fair and accurate information is desired to be produced for the purpose of objectivity, another ethical standard for accounting. Only with objective information will people such as investors and creditors will put their trust on the company, investing on the company for the hope of gaining some return through competent management in the process. This will be violated with Lis proposal, as well. A. Using the Weighted Average method, prepare a production cost report (following the 4 steps outlined in the text) for the Strings department for October. Round to 4 decimal places for unit costs and to the nearest dollar in the production cost report. C. Assume that in order to remain competitive, the company undertook a major cost-cutting program during February. Would the effects of this cost-cutting program tend to show up more under the weighted average or under the FIFO method? Explain your