Budgeting, ethics, pharmaceutical company. Chris Jackson was recently promoted to Controller of Research and Development for BrisC or, a Fortune 500 pharmaceutical company that manufactures prescription drugs and nutritional supplements. The company’s total R&amp ; D cost for 2017 was expected (budgeted) to be $5 billion. During the company’s midyear budget review, Chris realized that current R&amp ; D expenditures were already at $3.5 billion, nearly 40% above the midyear target. At this current rate of expenditure, the R&amp ; D division was on track to exceed its total year-end budget by $2 billion!
In a meeting with CFO Ronald Meece later that day, Jackson delivered the bad news. Meece was both shocked and outraged that the R&D spending had gotten out of control. Meece wasn’t any more understanding when Jackson revealed that the excess cost was entirely related to research and development of a new drug, Vyacon, which was expected to go to market next year. The new drug would result in large profits for BrisCor, if the product could be approved by year-end. Meece had already announced his expectations of third-quarter earnings to Wall Street analysts. If the R&D expenditures weren’t reduced by the end of the third quarter, Meece was certain that the targets he had announced publicly would be missed and the company’s stock price would tumble. Meece instructed Jackson to make up the budget shortfall by the end of the third quarter using "whatever means necessary." Jackson was new to the controller’s position and wanted to make sure that Meece’s orders were followed. Jackson came up with the following ideas for making the third-quarter budgeted targets:
1. Stop all research and development efforts on the drug Vyacon until after year-end. This change would delay the drug going to market by at least 6 months. It is possible that in the meantime a BrisCor competitor could make it to market with a similar drug.
2. Sell off rights to the drug Martek. The company had not planned on doing this because, under current market conditions, it would get less than fair value. It would, however, result in a one-time gain that could offset the budget shortfall. Of course, all future profits from Martek would be lost. Capitalize some of the company’s R&D expenditures, reducing R&D expense on the income statement. This transaction would not be in accordance with GAAP, but Jackson thought it was justifiable because the Vyacon drug was going to market early next year. Jackson would argue that capitalizing R&D costs this year and expensing them next year would better match revenues and expenses.
3. Referring to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,"
4. Which of the preceding items are acceptable to use? Which are unacceptable? What would you recommend Jackson do?

Answer:

BrisCor

Budgeting, ethics, pharmaceutical company

a. Referring to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,"

none of the preceding items are acceptable to use.

b. I would recommend Jackson to go ahead with the R&D throughout the year to ensure that the drug Vyacon was successfully brought to the market next year before the competitor.  He can try to keep to the budget going forward.  A budget remains a budget and not the actual.  Budget overrun can result.  What is important is its effectiveness in achieving business goals.

Explanation:

The announced expectations of third-quarter earnings to Wall Street analysts should not prevent the R&D on the drug Vyacon from continuing, provided Jackson is certain that the envisaged success would be attained.  They remain expectations.  They are not the actual results of operations for the year. Even if the company's stock price would tumble, it would still recover after the drug had received approval and gone to market, raking in large profits.  After all, the projected increase in R&D cost might not result, and the drug Vyacon could be fully developed and ready for the market before year-end, thereby not exceeding its budget.

Jeff and Riley were married for 35 years when Riley died in July of 2016. The couple have two children who are 6 and 10 years old. Which of the following applies to Jeff regarding filing status?a) Jeff can file using any status he wants for the next 3 yearsb) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 and 2018c) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2016 onlyd) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 only

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A three-month forward contract on a stock index is trading at $1000. The current index level is $985.1. Assuming a continuously compounded interest rate of 5%. Additionally, assume that the stock index does not pay any dividends. Which one of the following statements reflects a potential arbitrage strategy:
I. Long the forward contract, short the stock index, and lend at the risk-free rate
II. Short the stock index and lend at the risk-free rate, while entering in a forward contract agree- ment to purchase the asset in three months for $1000.
(a) I alone
(b) II alone
(c) I and II
(d) None of the above

What are the "flows" within a supply chain, and why are they important?

a ____ is paid work that gives you experience to lead to a new job
A. Career
B. Job
C. occupation
D. Skill

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2017
a. Unrecorded depreciation on the trucks at the end of the year is $8.231
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at year-end is $1,400.
1. Prepare the year-end closing entries for Dylan Delivery Company as of December 31, 2017
2. Determine the capital amount to be reported on the December 31, 2017 balance sheet.

A transformational leadership style would not work well with

a project designed by a team

someone who works best independently

those who appreciate regular feedback

employees who had a strong belief in the company that they work for

Select the correct answer
What does the term constructed wetlands normally refer to
A natural wetlands that are used for wastewater disposal and treatment
B. wetlandis created for the purpose of environmental research
Cartificially created wetlands that simulate natural wetlands
D. wetlands used for constructing buildings
Reset
Net

Sewtfi951 Corporation makes an extra large part to use in one its fabulous products. A total of 14,500 units of this extra large part are produced and used every year. The company's costs of producing the extra large part at this level of activity are below:
Per Unit
Direct materials $3.20
Direct labor $7.80
Variable manufacturing overhead $8.30
Supervisor's salary $3.70
Depreciation of special equipment $2.10
Allocated general overhead $7.30
An outside supplier has offered to make the extra large part and sell it to Sewt1951 for $32.30 each If this offer is accepted the supervisor's salary and all of the variable costs, including the direct labor, can be avoided The special equipment used to make the extra large part has no salvage value or other use The allocated general overhead representa fixed costs of the entire Sewt1951 company. none of which would be avoided at the part were purchased instead of produced internally. In addition, the space used to make the extra large part could be used to make more of one of the company's other fabulous products, generating an additional segment margin of $34,500 per year for that product
What would be the annual financial advantage (disadvantage) for Sewt1951 Corp as a result of buying the extra large part from the outside supplier?

When you are posting your résumé online, be sure to adjust it so it is _____.

one page in length
bold
colorful
cyber-safe

Assume that Clark Electronics has a monopoly in the production and sale of a new device for detecting and destroying a computer virus. Clark Electronics currently incurs short-run losses, but it continues to operate.
a. What must be true for Clark to continue to operate in the short run?
b. Draw a correctly labeled graph, and show each of the following for Clark.
i. The profit-maximizing price and output
ii. Area of loss
C. Assume Clark is maximizing profit. What will happen to its total revenue if Clark raises its price? Explain.
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i. Profit-maximizing output
ii. Total cost

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The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining these figures.
Week Crew Size Yards Installed
1 4 96
2 3 72
3 4 92
4 2 50
5 3 69
6 2 52
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a. Throw away credit card applications in the garbage.
b. Shred all mail with personal information before discarding it.
C. Place your old bank statements in the recycle bin.
d. Carry all your passwords in your wallet or purse.

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The direct labor rate is $17.50 per DLH.The direct materials cost per unit for each product is given below:
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The unit product cost of Product O6 is closest to:
A) $637.15 per unit
B) $896.71 per unit
C) $721.00 per unit
D) $661.45 per unit

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If you restate a quote in your own words but do not cite your source you can be rightfully accused of

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Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Last year 130 150 155 215 225 230 175 165 155 230 255 280
This year 155 155 205 220 245 250

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(ID#32648)
What were Sraibn 620 Corporation's common fixed expenses?
a) $15,450
b) $106,550
c) $55,400
d) $70,850

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Data for Yvavxs408 Corporation and its two divisions, Domestic and Foreign, appear below:
Sales revenues, Domestic $620,000
Variable expenses, Domestic $359,700
Traceable fixed expenses, Domestic $ 74,100
Sales revenues, Foreign $478,400
Variable expenses, Foreign $273,000
Traceable fixed expenses, Foreign $ 61,900
(ID#54797) In addition, Yvavxs408's common fixed expenses totaled S167.800 and were allocated as follows: 587,100 to the Domestic division and $80.700 to the Foreign division
What is the segment margin for the Domestic division?

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The broad scope seeks to attract a large group of applicants who have a high probability possessing the characteristics that are needed to perform a specific job and qualifications are specific and specialized.
A. True
B. False

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On January 1, 2019, Sandhill Corporation acquired machinery at a cost of $1290000. Sandhill adopted the double-declining balance method of depreciation for this machinery and had been recording depreciation over an estimated useful life of ten years, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for the machinery. The depreciation expense for 2022 would be

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What is the expected annual revenue for the store?Expected annual revenue= $