During heaton company’s first two years of operations, the company reported absorption costing net operating income as follows: year 1 year 2 sales (@ $25 per unit) 1,000,000 1,250,000 cost of goods sold (@ $18 per unit) 720,000 900,000 gross margin 280,000 350,000 selling and administrative expenses* 210,000 230,000 net operating income 70,000 120,000 * $2 per unit variable; $130,000 fixed each year. the company’s $18 unit product cost is computed as follows: direct materials $ 4 direct labor 7 variable manufacturing overhead 1 fixed manufacturing overhead ($270,000 ÷ 45,000 units) 6 absorption costing unit product cost $ 18 forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. production and cost data for the two years are:

Taking commercial paper means the holder acts honestly

For a firm that uses the weighted average method of process costing, which of the following must be true? (a) physical units can be greater than or less than equivalent units. (b) physical units must be equal to equivalent units. (c) equivalent units must be greater than or equal to physical units. (d) physical units must be greater than or equal to equivalent units.

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum. should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?