Question #1 (16 points)
List and describe the four standards in the IMAs Statement of Ethical Practice. As part of your answer, be sure to provide an example of an action that violates the standard.
Question #2 (14 points)
Consider the following information, prepared based on a monthly capacity of 50,000 units:
Advanced Managerial Accounting Winter 2014 Mid-Term Exam Directions: Answer all the questions. Please submit your work in Word or PDF formats only. You can submit an Excel file to support calculations, but please cut and paste your solutions into the Word or PDF file. Be sure to show how you did your calculations. Also, please be sure to include your name at the top of the first page of your file. You can use any sources you wish, except for other people. Please cite any sources you use. There is no time limit to complete the exam, other than it is due at 11:59 PM Eastern on Sunday, February 9th, 2014. The exam will count 30 percent toward your course grade. The point value for each question is noted. Question #1 (16 points) List and describe the four standards in the IMAs Statement of Ethical Practice. As part of your answer, be sure to provide an example of an action that violates the standard. Question #2 (14 points) Consider the following information, prepared based on a monthly capacity of 50,000 units: Category?Cost per Unit??Variable manufacturing costs ?$12.00??Fixed manufacturing costs?$1.00??Variable marketing costs?$3.00??Fixed marketing costs?$2.00?? Capacity cannot be added in the short run and the firm currently sells the product for $20 per unit. Consider each of these scenarios independent of each other. a) The company is currently producing 50,000 units per month. A potential customer has contacted the firm and offered to purchase 10,000 units this month only. The customer is willing to pay $18 per unit. Since the potential customer approached the firm, there will be no variable marketing costs incurred. Should the company accept the special order? Why or why not? Be specific. b) The company is currently producing 40,000 units per month. A potential customer has contacted the firm and offered to purchase 10,000 units this month only. Since the potential customer approached the firm, there will be no variable marketing costs incurred….
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