Each of the statements below violates a convention in accounting. State which of the following accounting conventions is violated: consistency, materiality, conservatism, full disclosure, or cost-benefit.
1. A series of reports that are time-consuming and expensive to prepare are presented to the owner each month, even though they are never used.
2. A company changes its method of accounting for depreciation.
3. The company in 2 does not indicate in the financial statements that the method of depreciation was changed; nor does it specify the effect of the change on net income.
4. A company’s new office building, which is built next to the company’s existing factory, is debited to the factory account because it represents a fairly small dollar amount in relation to the factory.
5. The asset account for a pickup truck still used in the business is written down to what the truck could be sold for, even though the carrying value under conventional depreciation methods is higher.
Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to...