Description
Discussion Topic 1: Ethical-Decision Making
Read the scenario about Stacy Lynn, Inc. After you complete the reading respond to the following components:
Part A: If Stacy Lynn wants to show the bank the maximum profit over the previous 2-year period, which costing method should be presented?
Part B: However, the bank requires that all financial statements conform to Generally Accepted Accounting Principles (GAAP). Based on that requirement, which costing method should be presented?
Part C: The bank has delivered a memo in preparation for the meeting to negotiate the Credit Line; the memo states that they will expect a significant Net Income. Based on your responses to Parts A and B, what are some of the legal and ethical issues that may be of importance to Stacy Lynn?
attached the scenario
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
check italways invite mebyee
Running Head: DISCUSSION TOPIC 1
1
Discussion Topic 1: Ethical-Decision Making
Name
Institution
Instructor
Course
Date
DISCUSSION TOPIC 1
2
Part A: If Stacy Lynn wants to show the bank the maximum profit over the previous 2-year
period, which costing method should be presented?
The Variable Costing Method should be presented because the method keeps all fixed
and variable costs separately. The cost of sales and the contribution margin are presented under
variable costs. Therefore, if Stacy wants to show the maximum profit, Marginal Costing shou...