Manoil electronics manufactures and sells electronic components to electronics stores. the controller is preparing her annual budget and has asked the sales group to prepare sales estimates. all members of the sales force have been asked to estimate sales in their territory for each of the organization's 10 major products. the marketing group is paid a salary and a commission based on sales in excess of some target level. you have discovered that the sales manager uses the sales estimates to develop the target levels at which commissions begin. specifically, the sales manager takes the sales estimate, adds 10%, and the result becomes the sales hurdle level. if sales are less than the hurdle level, no commissions are paid. if sales are above the hurdle level, commissions are paid at varying rates. requirements (a) what is the motivation of the sales force if they know the relationship between their estimate and the target level of sales? (b) what is the likely consequence of basing the organization's budgets on these estimates? (c) if you were the controller in this situation and were responsible for both the reward system and the budgeting system, what would you do?

Social computing forces companies to deal with customers as opposed to

If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (cogs) is too low and which of the following corrections must be made? a. decrease cogs for double the amount of the underallocation b. increase cogs for double the amount of the underallocation c. decrease cogs for the amount of the underallocation d. increase cogs for the amount of the underallocation

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal.supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal.prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal.insurance expensejan. 31 bal. 164 164 jan. 31 bal.wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal.wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal.truckjan. 31 bal. 17,376 17,376 jan. 31 bal.accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal.a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year.c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths