Aardvark Is a Small Pest-Control Business That Has 30 Employees

question 139

Short Answer

Aardvark is a small pest-control business that has 30 employees. The company started business within the past year and needs to make a decision on how best to make sure its finances are managed well as the company continues to grow its customer base and its business.
Which of the following questions would be LEAST relevant to a controller as he or she develops a financial forecast for Aardvark?
What are the future plans of the company?
What is the current state of the local economy?
What is the future state of the local economy likely to be?
What subcontractors should the company use?
What is the company's competition likely to do?

Understand the effects of sales discounts, returns, and freight costs on transactions.

Compute adjustments for inventory shrinkage and the cost of merchandise purchased.

Understand the accounting treatment of expenses and revenue recognition for a merchandising business.

Understand the closure of accounts and calculation of financial ratios in accounting.

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Definitions:

Ethical Controls

Measures or guidelines put in place to ensure behavior and practices conform to ethical standards and principles.

Referent Informational Influence

Pressure to conform to a group norm that defines oneself as a group member.

Social Identity Approach

A theoretical framework suggesting that individuals define themselves by the groups to which they belong, affecting their behaviors and attitudes.

Normative Influence

The impact of societal norms and peer pressures on an individual's behavior, often leading to conformity even if personal beliefs differ.