Cost Accounting Case Study Example | Topics and Well Written Essays - 500 words - 1

Cost Accounting - Case Study ExampleThe charging of the scale downs by the company employees is supposed to rate for the two types of contracts fixed-price and follow type contracts. In this case, the contract charging by Jumbo Corporation employees, and the subsequent termination and activities undertaken by Frank and Harold pinpoint to fraudulent activities. This is because the contracts are charged inappropriately by having fixed-price contracts charged to cost type contracts. Even though the companys accounting system released unidentified contracts in name of their relative types, the association has a foreman in place to direct contract charging for both GO-1 and GO-2. The creditworthy parties are not executing their applicable duties, and thus the outcome of the contract charging can be termed to be fraud (Vona 157).Frank is guilty based on the unfolding events regarding contract charging in Jumbo Corporation. He is supposed to direct employees on which GO to charge the ir time. The role played by Frank shows that the corporations accounting system was not to blame for the failure to identify GO as to contract type. This failure was supposed to be corrected by Frank by being there to depart directions to the shop employees during contract charging. Instead of doing this, Frank feels that the system is work ating out for him. In other words, the actual contract charging saves him trouble with the management. This is because the company reviews meet what Frank is supposed to achieve on a periodic basis. Although he is aware of the mistake being committed, he stays silent to have the process work out for him even further. This makes him engage in fraud in the sense that he conceals it.Harold is as fountainhead guilty of fraud. He noticed the pattern that the charging activities were taking and was pleased by that instead of taking relevant actions to correct the situation. The VP noted that the shop employees charged some fixed-price contracts to cost type contracts.