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NEW QUESTION: 1
You are the management accountant for YY a food manufacturing company with an annual sales revenue of $6 million You discover that the production manager's records are inconsistent Raw materials purchased do not agree with the total recorded for transfers to production plus wastage There is an average shortfall of 2% of purchases You have investigated and discovered that there are often errors made during manufacturing that results in food that is safe to eat but. because of visual flaws, cannot be sold The production manager is supposed to scrap all such damaged products and write all such losses off as waste You have discovered however that he has been giving the damaged food to a charity that assists homeless people No records are made of such gifts in order to conceal the losses due to manufacturing errors Which of the following actions should you take? Select ALL that apply
A. Instigate disciplinary action this is both theft and poor management
B. Instigate a review of the production process to potentially reduce the amount of wastage.
C. Instigate a process whereby edible but unsellable items can be given to the charity officially
D. Do nothing; this is a good cause and the amount is insignificant
E. Instigate a confidential but documented review with the production manager and tell him to stop
Answer: A,B,C

NEW QUESTION: 2

A. Option C
B. Option A
C. Option B
Answer: A

NEW QUESTION: 3
DRAG DROP


Answer:
Explanation: