Saturday, March 2, 2019
The primary stakeholders for this case
The primary stakeholders for this case ar the investors, stock holders and other clients that are directly doing business with the friendship. Furthermore, secondary stakeholders batch be the corporations employees and board members. Whatever decision the companys ascendance takes, it go forth have a direct military force on these com/tesco-and-oxfam-stakeholders/stakeholders. b. The presidents request regarding increasing the allowance for dubitable accounts from 2% to 4% poses some ethical dilemma for the company.As the controller of the company, the controller knows what is best for the company, thus, suggesting a 2% allowance for doubtful accounts guarantees that the company forget be, at least, achieve its bespeak growth prize. However, the president wants the company to snap safe, thus, suggesting an increase in allowance. Even though the president has a soundly intention in his request, the fact that he is overestimating the allowance poses many attainable effect s for the company and for the stakeholders in the colossal run.The company and its stakeholders might be mislead by the impression that they are achieving their target growth ordain when in fact, that percentage is lower compared to the actual target growth rate that the company should accomplish. In addition, the request posted by the president does non have any quantitative data to support the decision. This, in the long run may underestimate the potential of the company in foothold of financial growth because the increase in allowance in turn, way of life an decrease in company income (Clausen 2009).c. The companys controller should be concerned in the company growth rate because as the companys employee, he is also a stakeholder of the company who can be affected if wrong decisions are implemented. His job of assuring the companys stability will be affected if wrong estimations regarding financial activities will be followed. He as the controller should make sure start if the presidents breath would be suitable for the company sooner implementing it.If the suggestion will pose unreasonable risk for the company, then the suggestion should be abandoned and other ways on securing the companys growth rate should be done to still achieve the target results (Clausen 2009). ? Source Clausen, James (2009). Accounting 101 Allowance for Doubtful Accounts. rooms 101. com. Available at http//accounting. suite101. com/article. cfm/accounting_101_allowance_for_doubtful_accounts
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