1. There are several recommendations for documentation of performance and developmental activities

1. There are several recommendations for documentation of performance and developmental activities

1. There are several recommendations for documentation of performance and developmental activities. Describe three (3) recommendations and why you believe they are important.

2. In this video, Charles Rogel of DecisionWise discusses 5 myths concerning the process.

https://www.youtube.com/watch?v=jAA01x-xp6Q

After watching the video, please share your thoughts on any new learning you had from the video or ideas you may have for overcoming some of the possible concerns based on what the myths reveal.

FOR QUESTION 3 AND 4 Do not use outside resources for your answers. Make sure to include in-text citations with supporting reference.

3. Avett Manufacturing Company allows employees to purchase materials, such as metal and lumber, for personal use at a price equal to the company’s cost. To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee’s immediate supervisor. Brian Dadian, an assistant cost accountant, then charges the employee an amount based on Avett’s net purchase cost.

Brian is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Brian reviewed all the purchase invoices for the past year. He then used the lowest price to compute the amount due the company for the lumber.

The Institute of Management Accountants (IMA) is the professional organization for managerial accountants. The IMA has established four principles of ethical conduct for its members: honesty, fairness, objectivity, and responsibility. These principles are available at the IMA Web site: www.imanet.org.

Using the IMA’s four principles of ethical conduct, evaluate Brian’s behavior. Has he acted in an ethical manner? Why?

4. TAC Industries Inc. sells heavy equipment to large corporations and federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to the government, however, are determined on a cost plus basis, where the selling price is determined by adding a fixed markup percentage to the total job cost.

Tandy Lane is the cost accountant for the Equipment Division of TAC Industries Inc. The division is under pressure from senior management to improve income from operations. As Tandy reviewed the division’s job cost sheets, she realized that she could increase the division’s income from operations by moving a portion of the direct labor hours that had been assigned to the job order cost sheets of corporate customers onto the job order costs sheets of government customers. She believed that this would create a “win–win” for the division by (1) reducing the cost of corporate jobs, and (2) increasing the cost of government jobs whose profit is based on a percentage of job cost. Tandy submitted this idea to her division manager, who was impressed by her creative solution for improving the division’s profitability.

Is Tandy’s plan ethical?

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