Sol: (1) Four standards: (A). COMPETENCE: Each practitioner has a responsibilit to: 1. Maintain an appropriate le!

el o" pro"essional e#pertise b continuall de!elopin$ %no&led$e and s%ills. '. Per"or( pro"essional duties in accordance &ith rele!ant la&s) re$ulations) and tech* *nical standards. +. Pro!ide decision support in"or(ation and reco((endations that are accurate) clear) concise) and ti(el . ,. -eco$ni.e and co((unicate pro"essional li(itations or other constraints that &ould preclude responsible /ud$(ent or success"ul per"or(ance o" an acti!it . (0). CONF12ENT1A31T4: Each practitioner has a responsibilit to: 1. 5eep in"or (ation con"idential e#cept &hen disclosure is authori.ed or le$all re6uired. '. 1n"or( all rele!ant parties re$ardin$ appropriate use o" con"idential in"or(ation. Monitor subordinates7s acti!ities to ensure co(pliance. +. -e"rain "ro( usin$ con"idential in"or(ation "or unethical or ille$al ad!anta$e.
(C) 1NTE8-1T4: Each practitioner has a responsibilit to: 1. Miti$ate actual con"licts o" interest. -e$ularl co((unicate &ith business asso* ciates to a!oid apparent con"licts o" interest. Ad!ise all parties o" an potential con"licts. '. -e"rain "ro( en$a$in$ in an conduct that &ould pre/udice carr in$ out duties ethicall . +. Abstain "ro( en$a$in$ in or supportin$ an acti!it that (i$ht discredit the pro"ession.

(,) C-E210131T4: Each practitioner has a responsibilit to: 1. Co((unicate in"or(ation "airl and ob/ecti!el . '. 2isclose all rele!ant in"or(ation that could reasonabl be e#pected to in"luence an intended user7s understandin$ o" the reports) anal ses) or reco((endations. +. 2isclose dela s or de"iciencies in in"or(ation) ti(eliness) processin$) or internal controls in con"or(ance &ith or$ani.ation polic and9or applicable la&.

2iscuss the issue &ith our i((ediate super!isor e#cept &hen it appears that the super!isor is in!ol!ed. 1n that case) present the issue to the ne#t le!el. 1" ou cannot achie!e a satis"actor resolution) sub(it the issue to the ne#t (ana$e(ent le!el. 1" our i((ediate superior is the chie" e#ecuti!e o""icer or e6ui!alent) the acceptable re!ie&in$ authorit (a be a $roup such as the audit co((ittee) e#ecuti!e co((ittee) board o" directors) board o" trustees) or o&ners. Contact &ith le!els abo!e the i((edi* *ate superior should be initiated onl &ith our superior7s %no&led$e) assu(in$ he or she is not in!ol!ed. Co((unication o" such proble(s to authorities or indi!iduals not e(plo ed or en$a$ed b the or$ani.ation is not considered appropriate) unless ou belie!e there is a clear !iolation o" the la&
Sol: (') (a) a. Sa!in$ in !ariable (ar%etin$ cost loss o" re!enue ':*1; Net sa!in$ per unit Total additional pro"it 1::::<1

3 2 1 $ 10,000

Fro( "inancial point o" !ie& the co(pan can accept the order as it is $eneratin$ additional pro"it o" =1::::) but as the order is onl "or once) then the co(pan should also consider the i(pact on loss o" sales o" e#istin$ custo(er) i" the e#istin$ custo(er is bu in$ on re$ular basis then the order (a be re/ected.

(b) The (ini(u( accepted a(ount &ill be =1' !ariable (anu"acturin$ cost) as all other costs are irrele!ant "or this decision. >o&e!er) co(pan should also consider the i(pact on e#istin$ custo(er) as the (a as% "or reduce price) i" the "ind that so(eone is sold at reduced price) the sa(e product.

Solution #4 a) ?hat is the $oal o" the EO@ (odelA The econo(ic order 6uantit (odel helps in deter(inin$ a 6uantit to be orders as &hich the total carr in$ cost and total orderin$ cost are e6ual and the both in total is at its (ini(u( le!el. b) ?h does a "ir( hold Bsa"et stoc%AC The "ir( holds sa"et stoc% to (eet the (a#i(u( lead ti(e and (a#i(u( usa$e durin$ (eet ti(e. For e#a(ple) i" a co(pan place an order "ro( DSA to Eapan and it ta%es nor(all 1F da s) but it can ta%e (a#i(u( ': da s and the usa$e durin$ this lead ti(e is nor(all ':: units but the usa$e (a be 'F: units) there"ore the sa"et stoc% &ill be F<F: G 'F: units as sa"et stoc% to a!oid the cost o" stoc% out. c) ?hat costs are a "ir( tr in$ to balance &hen it decides on ho& (uch sa"et stoc% to holdA 1t is tr in$ to balance the cost o" holdin$ stoc% and the cost o" stoc% out. The stoc% out cost includes the loss o" production and loss o" re!enue) due to loss o" custo(er.

Sol: (F) 1n accountin$ area) the E1T (anu"acturin$ s ste( (ini(i.es the a(ount o" holdin$ in!entor in the &arehouse. This (eans that) all the production cost li%es direct costs) "actor ) o!erhead costs can be directl counted into the cost o" $oods sold. 0esides this) (ost cost accountin$ s ste(s are i(ple(ented to deter(ine the production costs in a bud$et &a . 0ut &hen E1T (anu"acturin$ s ste(s co(e across to accountin$) the in!entor costin$ s ste( can be eli(inated b the (ini(al in!entor le!el at an opti(al point in the E1T s ste(. The "ir( can reduce the in!entor costin$ s ste( costs b i(pro!in$ the in!entor control s ste(. Further(ore) the chan$e in the acco* *untin$ s ste( also in"luences the "inancial state(ent o" the "ir(s. A"ter adoptin$ the E1T (anu"acturin$ s ste() the in!entor costin$ costs are eli(inated and result in a lo& in!entor holdin$ costs. All these "actors increase the pro"it o" the "ir() result in (ore attracti!e "inancial state(ent to the end users.
Solution #6
It is a method in which the costing process of a product or services is delayed until the production or service is completed. The cost to operation is charged once the operation is completed. It helps in easy determination of setting selling price and it avoids the lengthy and difficult system of accumulating cost during production process.