Question 1
Accounting errors can be defined by the concepts of Materiality and Judgment, which you need to master in accounting. However, there is much debate as to what exactly defines materiality concerning the financial statements. Your current job is to review several financial statement accounts. You found there was a failure to record accrued wages and a failure to record depreciation for 6 months. Your boss indicated to you not to worry as these are not material. However in your view they are! What key points would you address to your boss and why?
Question 2
Activity based costing (ABC) often revalues existing costing systems by looking at specific activities that drive costs. Through this identification of the key activities, we define the cost objects as these activities. In order to first achieve ABC in a business, we need to do the following:
1. Identify the key activities performed.
2. Realize the costs associated with these activities.
3. Assign these activities to cost objects.
Select two examples of processes that exist in a business and specify each of the above three elements for each process in order to create an ABC model for the examples. Share the process you undertook to do this and why you chose it.
Question 3
Datamining is the concept of collecting information about certain situations to help with forcasting. How does the use of data warehouses and datamining help management make better decisions?
To whatextent should end users be involved in the selection of a database management system and database design?