Gutierrez Company, a publicly held corporation,
operates a regional chain of large drugstores. Each drugstore is
operated by a general manager and a controller. The general manager
is responsible for the day-to-day operations of the store, while
the controller is responsible for the budget and other financial
tasks. The general manager, Tracie Kappan, has been at Gutierrez
Company for several years. Employee turnover is high at Gutierrez
Company, just as it is in the retail industry in general. Kappan
just hired a new controller, Min Yang.
Yang was asked to prepare the master budget. Each
retail location prepares its master budget once a year and then
submits that budget to company headquarters for approval. Once
approved by headquarters, the master budget is used to evaluate the
store’s performance. These performance evaluations directly affect
the managers’ bonuses and whether additional company funds are
invested in that location.
When Yang was almost done preparing the budget, Kappan
instructed him to increase the amounts budgeted for labor and
supplies by 20%. When asked why, Kappan responded that this
budgetary cushion gives store management flexibility in running the
store. For example, because company headquarters tightly controls
operating funds and capital improvement funds, any extra money
budgeted for labor and supplies can be used to replace store
furnishings or to pay bonuses to help to retain good employees. She
explains that the chance of getting extra funds from company
headquarters is not good; this “cushion” is usually the only
opportunity to replace store décor or to pay bonuses to key
employees. Kappan also needs extra funds occasionally to make
“under the table” payments to employees as incentives to work extra
hours or to keep them from leaving for a higher-paying
job.
Yang feels conflicted. He is eager to please Kappan,
and he is wondering what he should do in this situation.
Requirements:
Using the IMA Statement of Ethical Professional Practice(Exhibit 1-7 pg.13 of the textbook) as an ethical framework, answer the following questions:
What are the ethical issue(s) in this
situation?
What are Yang’s responsibilities as a management
accountant?
Would your answer differ if Gutierrez Company were
instead owned by one individual instead of being publicly held? Why
or why not?
Would anyone be harmed if slack were to be built into
the budget? Why or why not?
Discuss the specific steps Yang should take in this
situation. Refer to the IMA Statement of Ethical Professional
Practice(Exhibit 1-7 pg.13 of the textbook) in your
response.(not less than 200 words)
In: Accounting
Gutierrez Company, a publicly held corporation,
operates a regional chain of large drugstores. Each drugstore is
operated by a general manager and a controller. The general manager
is responsible for the day-to-day operations of the store, while
the controller is responsible for the budget and other financial
tasks. The general manager, Tracie Kappan, has been at Gutierrez
Company for several years. Employee turnover is high at Gutierrez
Company, just as it is in the retail industry in general. Kappan
just hired a new controller, Min Yang.
Yang was asked to prepare the master budget. Each
retail location prepares its master budget once a year and then
submits that budget to company headquarters for approval. Once
approved by headquarters, the master budget is used to evaluate the
store’s performance. These performance evaluations directly affect
the managers’ bonuses and whether additional company funds are
invested in that location.
When Yang was almost done preparing the budget, Kappan
instructed him to increase the amounts budgeted for labor and
supplies by 20%. When asked why, Kappan responded that this
budgetary cushion gives store management flexibility in running the
store. For example, because company headquarters tightly controls
operating funds and capital improvement funds, any extra money
budgeted for labor and supplies can be used to replace store
furnishings or to pay bonuses to help to retain good employees. She
explains that the chance of getting extra funds from company
headquarters is not good; this “cushion” is usually the only
opportunity to replace store décor or to pay bonuses to key
employees. Kappan also needs extra funds occasionally to make
“under the table” payments to employees as incentives to work extra
hours or to keep them from leaving for a higher-paying
job.
Yang feels conflicted. He is eager to please Kappan,
and he is wondering what he should do in this situation.
Requirements:
Using the IMA Statement of Ethical Professional Practice(Exhibit 1-7 pg.13 of the textbook) as an ethical framework, answer the following questions:
What are the ethical issue(s) in this
situation?
What are Yang’s responsibilities as a management
accountant?
Would your answer differ if Gutierrez Company were
instead owned by one individual instead of being publicly held? Why
or why not?
Would anyone be harmed if slack were to be built into
the budget? Why or why not?
Discuss the specific steps Yang should take in this
situation. Refer to the IMA Statement of Ethical Professional
Practice(Exhibit 1-7 pg.13 of the textbook) in your
response.
(at least 200 words)
In: Accounting
The market for hotels in Sacramento is described by the following equations: Qd=80−P and Qs=2P−100
(a) What is the equilibrium price and quantity?
(b) Suppose the city places a $2 tax on hotel rooms. How much do consumers now pay? How much do producers receive? How much tax revenue is raised by the tax?
(c) Based on your answer to part (b) is supply or demand more elastic?
In: Economics
Problems 1 – Explain each of the following statements using supply-and-demand diagrams.
“When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.”
“When the weather turns warm in New England every summer, the price of hotel rooms in Caribbean resorts plummets.”
“When a war breaks out in the Middle East, the price of gasoline rises and the new price of a used Cadillac falls.”
In: Economics
you have a small hotel serving international customers from all over the world and you need to find a supplier that will provide you milk, cheese, and other dairy products. What will be the advantage and disadvantage of working with a small supplier who sells most of his products to you ? What will be the advantage and disadvantage of working with a very large supplier who sells only 1% of its products to you ? Discuss in ten or twelvesentences.
In: Operations Management
The manager of a small hotel resort is considering expansion. He would like to issue bonds but do not quite understand why he may or may not receive what amount of money is stated on the face of the bond but he has to repay what is on the face of the face bond. Write a report to the manager explaining the market forces that determine how much money will be collected. Also explain how the interest payment on bonds are calculated and paid.
In: Accounting
Based on the data below, forecast US hotel revenues for 2017, 2018, and 2019. Provide the model developed for your calculations.
YEAR REVENUE ($USD BILLION)
2001 105.00
2002 111.90
2003 118.80
2004 119.30
2005 135.50
2006 146.20
2007 153.80
2008 154.70
2009 133.30
2010 142.00
2011 153.30
2012 155.50
2013 163.00
2014 176.70
2015 189.50
2016 199.30
In: Finance
Please give a movie review of any movie. The movie can be any ENGLISH speaking movie of your choice. Examples would be Star Wars (newer series), Best Exotic Marigold Hotel, The 100 Foot Journey etc.. Any film that you feel will suit the assignment. Please make sure the movie is NOT a foreign film, and that it is no older than 10-15 years old.
at least 3-4 pages
In: Psychology
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. Project Boom (50%) Recession (50%) A $20 -$10 B -$10 $20 C $30 -$30 D $50 $50 If a manager adopted both project A and B simultaneously, the variance in returns associated with this joint project would be:
In: Economics
On a dark desert highway, a car leaves a gas station and heads straight for 10 km, heading exactly northeast.
(i.e., directed 45 degrees northward of due east). The car then turns onto a dirt road and drives completely
straight until it reaches a hotel located exactly 12 km north and 9.0 km east of the gas station. How far did the
car drive along the straight dirt road?
In: Physics