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Week 6 Acct 505 Essay

895 words - 4 pages

RE: Case 12-32 | Deangela Dixon | 12/2/2012 7:36:32 AM |
| Modified:12/2/2012 7:38 AM |
| 1. The decision being considered here is whether to continue operations at Ashton. The only relevant costs are the future facility costs that would be affected by this decision. If the facility were shut down, the Ashton facility has no resale value. In addition, if the Ashton facility were sold, the company would have to rent additional space at the remaining processing centers. There is no real cost at this point of using the Ashton facility despite what the financial performance report indicates. Therefore, it might be a better idea to consider shutting down the other facilities since ...view middle of the document...

By recommending closing the Ashton facility, Braun will have to violate the Credibility Standard, which requires the disclosure of all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analysis, or recommendation. Presumably, if the corporate board were fully informed of the consequences of this action, they would disapprove. |
RE: Ethical Breach? | Deangela Dixon | 12/4/2012 5:14:48 AM |
| Modified:12/4/2012 5:30 AM |
| The danger of ethical breaches is that they are a fundamental change in the ethics of your organization. When an ethical breach occurs, you must move quickly to repair the damage to your organization and then analyze the nature of the breach, determining if the breach was unethical, which should incite a chance in your rules or lead to a severe punishment for the person who initiated the breach

Read more: How to Analyze Ethical Breaches |

It is not fair for Braun to be held accountable for previous mistakes. |
RE: Case 12-32 Deangela Dixon 12/5/2012 4:39:22 AM

Prices should be set ignoring the depreciation on the Ashton facility. The cost of using the Ashton facility at this point is zero. Any attempt to recover the sunk cost of the original cost of the building by charging higher prices than the market will bear will lead to less business and lower profits.

| | RE: Problem 11-22 | Deangela Dixon | 12/3/2012 8:53:51 AM |
| 1.a

1 2 3 4

Process Time 0.6 0.6 0.6 0.6
Inspection Time 0.1 0.3 0.6 0.8
Move Time 1.4 1.3 1.3 1.4
Queue Time 5.6 5.7 5.6 5.7

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