WEEK 2 EOC: QUIZ 2, QUESTION 4

Answers:

a Lisa's accrual accounting shows a higher net profit when compared to the cash accounting.

“In an accrual accounting system, revenue is recorded when it is earned, regardless of when it is collected, and expenses are recorded when they are incurred, regardless of when they are paid.” Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

b. Laura's cash accounting shows the most accurate amount of money on hand. 

c. The accounting method that most accurately shows the revenues generated regardless of when they were received is cash accounting.

d. The accounting method that most accurately shows the expenses incurred regardless of when they were paid is cash accounting.

“The major advantage to using a cash accounting system is its simplicity. If you have a checking account, you already understand how a cash accounting system works. When you make a deposit into your checking account, you add to your cash balance.” Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

e. The accounting method that most accurately shows the outflows and inflows is cash accounting.

“You have learned that accountants use a double entry accounting system to record each of a business’s financial transactions twice. Doing so helps minimize the chance of making a recording error and helps ensure that The Accounting Formula stays in balance.” Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

f. The accounting method that shows the most accurate reflection of their restaurant’s true profitability is cash accounting.

CHAPTER 1, QUESTION 3

In the question posed we are given a scenario in which we are to determine if Laura’s actions are legal and ethical or not. After considering many details, I have concluded that although her actions were not illegal, she acted in an unethical manner. She took the cases of hot dogs that were delivered to her place of work for sampling purposes to her home for a private barbecue. The cases were free of charge to the establishment but this was done as a corrective action to prior orders. This was the way in which the provider was making the situation right.

As I mentioned previously, although her actions were legal, she was unethical. She caused the establishment a loss in terms of them never being able to sample the product therefore potentially taking earnings away from the provider. The reason the provider sent the cases to begin with was because they wanted to maintain a win-win relationship with the restaurant. They would not give away free samples just because.

 “ Ethics refers to the choices of proper conduct made by an individual in his or her relationships with others. Ethical behavior refers to behavior that is considered “right” or the “right thing to do.” Consistently choosing ethical behavior over behavior that is not ethical is important to your long-term career achievements. This is so because hospitality managers often will not know what the law may actually require in a given situation. When managerial activities are examined, employers, in many cases, will simply consider whether a manager’s actions were intentionally ethical or unethical.” Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

WEEK 1 EOC: MY VOICE

As a professional culinarian, my passion and respect for the craft of baking is quite evident. As you admire my work, you see the long, rigorous sessions of countless hours and dedication that go into each piece created. I have an eagerness to constantly improve my work and this is obtained by surrounding myself with like-minded individuals. Recognizing that my attitude determines my altitude is a fundamental key to my success. Having tenacity and determination to always give my very best, in and out of the kitchen is only one of the many things that sets me apart in this industry. In a world where many suffer trying to identify who they are, and fighting to fit a mold, I am blessed to recognize that I am without rival. This isn’t to say there is no one out there better than me in the field or even as a person. What I mean is I know God has created me intentionally. I am fearfully and wonderfully made. Therefore, He has equipped me with all the tools necessary to obtain greatness and prosperity in life. That is my inner voice.

WEEK 1 EOC: CHAPTER 1, QUESTION 3

From an ethical point of view, how should she handle this situation?

Explain your decision making process and defend your answer.  Use the five Ethical Guidelines in this chapter as a basis for your answer to explain what should be done with the hot dogs.

Answers:

a. Is it legal? YES, IT IS LEGAL.

b. Does it hurt anyone? YES, IT HURTS THE COMPANY BECAUSE THE CASES WERE SENT THERE FOR SAMPLING, NOT FOR LAURIE'S PERSONAL USE AT HER BACKYARD BARBECUE.

c. Am I being honest? NO, LAURIE IS NOT BEING HONEST.

d. Would I care if it happened to me? YES, I WOULD CARE.

 

e. Would I publicize my action? NO, I WOULD NOT PUBLICIZE MY ACTIONS BECAUSE I WOULD FEAR BEING REPRIMANDED.

f. What should be done with the two cases of hot dogs? THE TWO CASES OF HOTDOGS SHOULD BE LEFT AT THE OFFICE, FOR THEIR ORIGINAL INTENT..SAMPLING.