Question: hello i need help with this question! What should Khumalo do? [The following information applies to the questions displayed below.] AccuSound Corporation manufactures printed circuits

hello i need help with this question!
What should Khumalo do?
hello i need help with this question! What should Khumalo do? [The
following information applies to the questions displayed below.] AccuSound Corporation manufactures printed

[The following information applies to the questions displayed below.] AccuSound Corporation manufactures printed circuits boards for stereo amplifiers. A common product defect is a "drift" caused by fallure to maintain precise heat levels during the production process. Rejects from the 100 percent testing program are reworked to acceptable levels if the defect is drift. However, in a recent analysis of customer complaints, Amahle Khumalo, the assistant controller, and the quality control engineer determined that normal rework does not bring the printed circuit boards up to standard. Sampling showed that about half of the reworked boards will fail after extended amplifier operation. The incidence of failure in the reworked boards is projected to be about 10 percent over five years. Unfortunately, there is no way to determine which reworked printed circuit boards will fail, because testing will not detect the problem. The rework process could be changed to correct the problem, but the cost-benefit analysis for the suggested change indicates that it is not economically feasible. AccuSound's marketing analyst has indicated that this problem will have a significant impact on the company's reputation and customer satisfaction. Consequently, the board of directors would interpret this problem as having serious negative implications for the company's profitability. Khumalo included the circuit board failure and rework problem in her report prepared for the upcoming quarterly meeting of the board of directors. Due to the potential adverse economic impact, Khumalo followed a long-standing practice of highlighting this information. After reviewing the reports to be presented, the plant manager and his staff complained to the controller that he should control his people better. "We can't upset the board of directors with this kind of material. Tell Khumalo to tone that down. Maybe we can get it by the board in this meeting and have some time to work on it. People who buy those cheap systems and play them that loud shouldn't expect them to last forever." The controller called Khumalo into his office and said, "Amahle, you'll have to bury this one. The probable failure of reworks can be mentioned briefly in the oral presentation, but it should not be mentioned or highlighted in the advance material sent to the board." Khumalo feels strongly that the board of directors will be misinformed on a potentially serious loss of income if she follows the controller's orders. Khumalo discussed the problem with the quality control engineer, who simply remarked, "That's your problem, Amahle." 3. What should Khumalo do? 3. What should Khumalo do? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not avallable. Protect the interests of the company, others in the company, and herself. Khumalo must take some oction to reduce her vulnerabllity. Khumaio should write a report to the controller detaling the probable fallure of reworks, the analysis made by her and the quality control engineer, and the controller's instructions in this matter. ? Obey the controller and prepare the advance material for the board without mentioning or highighting the probable fallure of reworks. [The following information applies to the questions displayed below.] AccuSound Corporation manufactures printed circuits boards for stereo amplifiers. A common product defect is a "drift" caused by fallure to maintain precise heat levels during the production process. Rejects from the 100 percent testing program are reworked to acceptable levels if the defect is drift. However, in a recent analysis of customer complaints, Amahle Khumalo, the assistant controller, and the quality control engineer determined that normal rework does not bring the printed circuit boards up to standard. Sampling showed that about half of the reworked boards will fail after extended amplifier operation. The incidence of failure in the reworked boards is projected to be about 10 percent over five years. Unfortunately, there is no way to determine which reworked printed circuit boards will fail, because testing will not detect the problem. The rework process could be changed to correct the problem, but the cost-benefit analysis for the suggested change indicates that it is not economically feasible. AccuSound's marketing analyst has indicated that this problem will have a significant impact on the company's reputation and customer satisfaction. Consequently, the board of directors would interpret this problem as having serious negative implications for the company's profitability. Khumalo included the circuit board failure and rework problem in her report prepared for the upcoming quarterly meeting of the board of directors. Due to the potential adverse economic impact, Khumalo followed a long-standing practice of highlighting this information. After reviewing the reports to be presented, the plant manager and his staff complained to the controller that he should control his people better. "We can't upset the board of directors with this kind of material. Tell Khumalo to tone that down. Maybe we can get it by the board in this meeting and have some time to work on it. People who buy those cheap systems and play them that loud shouldn't expect them to last forever." The controller called Khumalo into his office and said, "Amahle, you'll have to bury this one. The probable failure of reworks can be mentioned briefly in the oral presentation, but it should not be mentioned or highlighted in the advance material sent to the board." Khumalo feels strongly that the board of directors will be misinformed on a potentially serious loss of income if she follows the controller's orders. Khumalo discussed the problem with the quality control engineer, who simply remarked, "That's your problem, Amahle." 3. What should Khumalo do? 3. What should Khumalo do? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not avallable. Protect the interests of the company, others in the company, and herself. Khumalo must take some oction to reduce her vulnerabllity. Khumaio should write a report to the controller detaling the probable fallure of reworks, the analysis made by her and the quality control engineer, and the controller's instructions in this matter. ? Obey the controller and prepare the advance material for the board without mentioning or highighting the probable fallure of reworks

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!