Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large
amount of borrowed funds was invested in a new building addition as well as in equipment and fixture
additions. Choi’s banker requires her to submit semiannual financial statements so he can monitor the financial
health of her business. He has warned her that if profit margins erode, he might raise the interest rate on the
borrowed funds to reflect the increased loan risk from the bank’s point of view. Choi knows profit margin is
likely to decline this year. As she prepares year-end adjusting entries, she decides to apply the following
depreciation rule: All asset additions are considered to be in use on the first day of the following month. (The
previous rule assumed assets are in use on the first day of the month nearest to the purchase date.)
Required
Identify decisions that managers like Choi must make in applying depreciation methods.
Is Choi’s rule an ethical violation, or is it a legitimate decision in computing depreciation?
How will Choi’s new depreciation rule affect the profit margin of her business?
Sample Solution
Managing each internal and external constraint in parallel are important as a result of an indoor constraint is typically among the management of the business. associate external constraint is outside the business and is tough to regulate, if at all. typically internal and external constraints go along and there’s a fine cross line between them. as an example, interest rates are an external constraint, and this causes an indoor constraint therein it makes the finance cash additional extravagant for the business. Internal constraints – these are circumstance among the management of the business that are limiting it achieving its aspiration. The effects of external constraints are; dynamical consumer’s tastes folks wish new product and services as presently as they are available on to the market. They prefer to modification to match no matter is fashionable at the time. If this happens then a business might notice its sales fall and it should not be profitable or not even survive. Competitors’ bring out new complete all the time to undertake to battle. They barrage new advertising movements and advancements to convert somebody customers. What are some effective strategies for enhancing successful team performance? How can these strategies help to decrease threats to team performance and motivation? Team performance is actually necessary for eminent comes. one thing that leader is often considering is that the relations, connections and performances of their cluster. High performance pointers demonstrate that eminent teams can very often outflank people operating solely, particularly within the feverish circumstances or once varied ranges of talents and skills are needed. Having an area with a team sets you up for additional distinguished adequacy that you simply ne’er might reach while not anyone else. Relationships and connections that advance corporations create things that prompt additional distinguished gain, originality creates a way of possession. eminent team performance needs the administration of consciences and their steady requests for thought and acknowledgment not typically even. Team development is each a skill and a science and therefore the pioneer who will faithfully fabricate elite teams is extraordinarily valuable. the subsequent are some effective methods for enhancing eminent team performance. •Understanding the team: each single team leader ought to understa>
GET ANSWER 