Mary is the production manager of the potato chip division. She gets bonus equal to 10% of
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Mary is the production manager of the potato chip division. She gets bonus equal to 10% of her base salary if the division meets its target profit. She realized that the preliminary profit figures for the division is $10,000 below the target profit. She is considering changing the estimated percentage completion with respect to materials and conversion in ending work in process inventory of the final processing department to increase the profit. Does Mary want the percentage completion to be increased or decreased? Briefly explain your reasoning. Do you think Mary should change the percentage completion? Why or why not?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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