Business, 31.08.2021 14:10 mauralawson
The focus of Positive Accounting Theory (PAT) is to forecast a firm's
actions concerned with accounting policy choices and the response of the
firm towards proposed new accounting standards. PAT adduce the
importance of accounting policy to management is related to the contracts
entered into by the firm
a) The political process in the article consists of the review of the rules and
regulation that govern the operations of the industry, such as the method
promotion of prescription drugs through educational events, based on
proposals by members of the public and input from consumer
organizations that are focused on protecting the end users of the
prescription drugs
b) According to the article, the maximum fines for companies that brake the
rules is expected to increase from $200,000 to $250,000, however the
consumer organization calls for a maximum fine of $1.1 million
Based on the expected increase of $50,000, the impact on small firms will
much more than impact of the fines on large companies in the
pharmaceutical industry that can afford such fines thereby promoting the
large firms to introduce more new prescription drugs that increases
revenue and market share
The increased fines will alter the accounting information of the firms which
can lead to more generalized expenses in order to avoid fines rather than
increased details. Therefore, expenses on advertisement may increase
alongside increase in revenue
c) (i) The proposed increase in fines from $200,000 to $250,000 will
further reduce the earnings of defaulting firms. However, the increased
revenue and market share that comes after promoting prescription drugs
at events can be easily made to offset the fine costs by increasing the
price of the drugs
(ii) The increase in fines indicates the level of effectiveness of the previous
fines was less than expected, therefore, the increase fines will not impact
the management compensation contract of firms that follow the rules, but
may increase incentives in other firms
Answers: 3
Business, 22.06.2019 01:30, bigsmokedagangsta
Iam trying to get more members on my blog. how do i do that?
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Business, 22.06.2019 11:30, kimjp56io5
Amano s preguntes cationing to come fonds and consumer good 8. why did the u. s. government use rationing for some foods and consumer goods during world war ii?
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Business, 22.06.2019 13:40, vanessam16
Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be:
Answers: 3
Business, 22.06.2019 17:20, iilovejohnccena1022
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?
Answers: 3
The focus of Positive Accounting Theory (PAT) is to forecast a firm's
actions concerned with accou...
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