Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company’s sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing – meaning its largest customers do not pay for nearly 6 months. Because BizCon is a new company, its equipment suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year, BizCon owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year.

As the senior accountant, the Chief Financial Officer has asked you to prepare a memo to be sent to management notifying them of the delayed wage payments.

Prepare the memo in a maximum 700 words including the following information to better outline the situation:

• Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting.
• Assess how at the end of the year, BizCon reported a favorable net income, yet the company’s management is concerned because the company is very short of cash. Explain to management how BizCon could have positive net income and yet run out of cash.

Chapter 12 presented the approach Intuit uses to measure the effectiveness of their ERM, and chapter 15 presented the process the City of Edmonton employed to develop and deploy their ERM. You are an ERM consultant, retained by Intuit to re-implement their ERM. They have decided to start over and develop a new ERM for their current organization. Would you recommend that the base their new ERM on PM² Risk Scorecard or ISO 31000? Explain why you would choose one over the other. You must use at least 2 paragraphs (of you own words) to justify your answer.

To complete this assignment, you must do the following:

A) Create a new thread. As indicated above, assume that you are an ERM consultant, retained by Intuit to re-implement their ERM. They have decided to start over and develop a new ERM for their current organization. Would you recommend that the base their new ERM on PM² Risk Scorecard or ISO 31000? Explain why you would choose one over the other. You must use at least 2 paragraphs (of you own words) to justify your answer.

NOTE: These discussions should be informal discussions, NOT research papers. If you MUST directly quote a resource, then cite it properly. However, I would much rather simply read your words.

One of the biggest complaints among managers is the huge amount of time they have to spend in meetings. Ideally the purpose of meetings is to put everyone’s heads together to solve a problem or make a decision. But far too often they can lead to unproductive, time-wasting conversations and even conflict.

For this assignment, think about some recent meetings you’ve attended where a significant decision had to be made. Think carefully about how some of the problems regarding group decision making that were discussed in the background readings apply to what you’ve experienced. Then write a 2- to 3-page paper addressing the following issues:

1. Are all voices equally heard, or are some people afraid to speak up? Are participants in the meeting afraid to contradict senior management?
2. Is time spent at the meetings productive, or is a lot of time wasted?
3. Are the decisions that are made solid ones? Or do they suffer from problems mentioned in the background materials such as groupthink?
4. Are ideas expressed at meetings creative and original, or are original ideas discouraged?
5. Based on what you’ve described in Questions 1–4 above, what kind of group decision-making process would you recommend be used in meetings you attend? Base your answer on readings from the background materials such as Sims (2002).

One of the biggest complaints among managers is the huge amount of time they have to spend in meetings. Ideally the purpose of meetings is to put everyone’s heads together to solve a problem or make a decision. But far too often they can lead to unproductive, time-wasting conversations and even conflict.

For this assignment, think about some recent meetings you’ve attended where a significant decision had to be made. Think carefully about how some of the problems regarding group decision making that were discussed in the background readings apply to what you’ve experienced. Then write a 2- to 3-page paper addressing the following issues:

1. Are all voices equally heard, or are some people afraid to speak up? Are participants in the meeting afraid to contradict senior management?
2. Is time spent at the meetings productive, or is a lot of time wasted?
3. Are the decisions that are made solid ones? Or do they suffer from problems mentioned in the background materials such as groupthink?
4. Are ideas expressed at meetings creative and original, or are original ideas discouraged?
5. Based on what you’ve described in Questions 1–4 above, what kind of group decision-making process would you recommend be used in meetings you attend? Base your answer on readings from the background materials such as Sims (2002).

Medina Corporation (100 points):

Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements.

Medina Corporation manufactures cruising bicycles and mountain bicycles. Estimated direct labor time to produce each type of bicycle is as follows:

	Cruising	Mountain
Estimated bicycles produced	30,000	20,000
Direct labor hours per bicycle	1	3

Estimated overhead for the two product lines = SAR 900,000

a. Compute the overhead cost assigned to each type of bicycle assuming direct labor hours is used to allocate overhead costs.
b. The controller is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the Mountain bicycle product line because of its complexity. He therefore developed the following three activity cost pools and related cost drivers to better understand these costs.

Activity Cost Pools	Expected Use of Cost Drivers	Estimated Overhead Costs
Setting up machines	1,000 setups	SAR 150,000
Assembling	90,000 labor hours	SAR 630,000
Inspection	1,200 inspections	SAR 120,000

Compute the activity-based overhead rates for these three cost pools.

c. Compute the cost that is assigned to each bicycle product line using activity-based costing system, given the following information.

Expected Use of Cost Drivers per Product

	Cruising	Mountain
Number of setups	150	850
Direct labor hours	30,000	60,000
Number of inspections	100	1,100

d. What do you believe the controller should do and why?
e. You must show all your work.