Alto Company consists of the Red River Division and the White Mountain Division. Red River produces and sells 100 pound bags of pottery clay which can either be sold to outside customers or to White Mountain. The following data are available from the last year:
Red River:
Product capacity in 100 lb. bags. 18,000 units
Selling price per bag to outside customers $ 20
Variable product cost per bag 10
Variable selling cost per bag 4
White Mountain:
Number of bags needed annually 6,000 units
Price per bag paid to an outside supplier $16
By selling to White Mountain, Red River will avoid $3 per bag in selling costs.
a. If Red River sells 18,000 bags annually to outside customers, what transfer price would be computed using the formula? Show calculations.
b. Assume
Write a 700- to 1,050-word summary of the team's discussion about IFRS versus GAAP, based on your team collaborative discussions. The summary should be structured in a subject-by-subject format. An introduction and a conclusion are needed. Your essay should include the answers to the following:
- IFRS 8-1: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed?
- IFRS 9-1: What is component depreciation, and when must it be used?
- IFRS 9-2: What is revaluation of plant assets? When should revaluation be applied?
- IFRS 9-3: Some product development expenditures are recorded as development expenses and others as development costs. Explain the difference between these accounts and how a company decides which classification is appropriate.
- IFRS 10-2: Explain how IFRS defines a continge
Analyze IT security vulnerabilities and available security and data protection technologies that can be applied to your project based on this week's readings (Essentials of MIS, Ch. 8 and Week 4 Electronic Reserve Readings). Create a Microsoft® Word plan of no more than 350 words that includes the following:
- Describe the internal and external threats to security for your project.
- Outline which type of security and threat prevention technology you recommend for your project and how it will be implemented. Your goal is to protect the privacy and financial information of your company and your potential customers.
Cite a minimum of 2 peer-reviewed references from the University of Phoenix Library.
Format consistent with APA guidelines.
Click the Assignment F
Question 1
- a) Describe five technologies that can support electronic commerce. (5 marks)
- b) List and explain five main reasons for implementing AIS in organizations. (5 marks)
- c) What is the role of a database system in the implementation of AIS? (5 marks)
- d) State five characteristics that make information valuable for decision making. (5 marks)
Question 2
You have been contracted by Maisha Bora Ltd to source or develop an accounting system for them. There are a number of options available to you and two of these are either developing AIS from scratch or buying a Commercial off the shelf (COTS) Application package.
- a) State some of the benefits of developing the system in-house. (5 marks)
- b) If you were to buy a COTS AIS, name three advantag
Suppose you are a CPA hired to represent a client that is currently under examination by the IRS. The client is the president and 95% shareholder of a building supply sales and warehousing business. He also owns 50% of the stock of a construction company. The client’s son owns the remaining 50% of the stock of the construction company. The client has received a Notice of Proposed Adjustments (NPA) on three (3) significant issues related to the building supply business for the years under examination. The issues identified in the NPA are unreasonable compensation, stock redemptions, and a rental loss. Additional facts regarding the issues are reflected below:
- Unreasonable compensation: The taxpayer receives a salary of $10 million composed of a $5 million base salary plus 5% of gross receipts not to exceed $5 million. The total gross receipts of the building supply business are $300 million. The NPA by the IRS disallows the salary based on 5% of gross receipts as a construc
Smith Manufacturing, Inc. has asked for your assistance in preparing a budget for next year's operations. Take a few moments to consider where you would begin the budgeting process.What types of information do you need?
Prepare a letter addressed to John Jones, CFO of Smith Manufacturing. In this letter be sure to request the information that is needed to begin the budgeting process. Also, provide an outline of how the budgeting process flows.
Sheetbend & Halyard Case
Jack Tar, CFO of Sheetbend & Halyard, Inc., opened the company’s confidential envelope. It contained a draft of a competitive bid for a contract to supply duffel canvas to the US Navy. The cover memo from the Sheetbend’s CEO asked Mr. Tar to review the bid before it was submitted.
The bid and its supporting documents had been prepared by Sheetbend’s sales staff. It called for Sheetbend to supply 100,000 yards of duffel canvas per year for five years. The proposed selling price was fixed at $30 per yard.
Mr. Tar was not usually involved in sales, but this bid was unusual in at least two respects. First, if accepted by the navy, the bid would commit Sheetbend to a fixed-price, long-term contract. Second, producing the duffel canvas would require and investment of $1.5 million to purchase machinery to refurbish Sheetbend’s plant in Pleasantboro, Maine.
Mr. Tar set to work and by the end of the week he had collected the following facts and assum
