ACC101 - Business Ethics and Accounting Principles Assignment

This document presents a comprehensive solution to an ACC101 assignment, addressing key aspects of business ethics and accounting. Part A analyzes hotel occupancy rates, explaining calculation methods and influencing factors. Part B delves into ethical considerations, examining a bribery sce...Read More

ACC101

TABLE OF CONTENTS
Part A.........................................................................................................................................3
Question 9.45.........................................................................................................................3
Part B..........................................................................................................................................3
Question 2.57.........................................................................................................................3
Part C..........................................................................................................................................4
Question 10.32.......................................................................................................................4
References..................................................................................................................................6

PART A.
Question 9.45
There is no similar static rate for an occupancy rate of the hotel. Clearly, occupancy of rooms
refers to the number of times a room is booked or sold to the visitor (room occupied) in a
specified period of time, as compared to the highest times a room is occupied. The number is
expressed in terms of percentage. In a situation where the establishment of each and every
room are shared and at the same time estimation is done, then the occupancy of room in an
establishment as a while can be calculated.
Any variation seen in the calculation process is the bed-night occupancy. Further, the
calculation gives consideration on the availability of beds-number in every room.
Dorquay Hotel could have estimated the occupancy rate by dividing the total number
occupied rooms in their hotel by the available one by 100 times.
For the month B / A=C x 100(¿ get a percentage)
A=Number of room available
B=Number of room rented
C=Occupancy rate
For this aspect, they might have considered their past experience, previous statistics, seasonal
factors and trend in the market1. On the basis of these factors; data for computation has been
gathered by the hotel to determine their occupancy rates.
PART B.
Question 2.572
Acceptance of offer
1 Hung, Wei-Ting, Jui-Kuo Shang, and Fei-Ching Wang. "Exploring the Determinants of Hotel Occupancy
Rate: A Dynamic Panel Data Approach." Abstract of Economic, Finance and Management Outlook 3 (2015): 1-
4.
2 Birt, Jacqueline, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver. Accounting: Business
reporting for decision making including iStudy, 5th Edition. John Wiley & Sons Australia, 2014

No, Mr Smith should not accept the complete offer as it is kind of bribe salesperson is trying
to offer Erle Smith as his decision can provide an absolute advantage to the vendor. Bribery
is considered as intolerable aspect all around the world. Indeed, in general, every country
knows that bribery is a disgraceful act in itself. Individuals accepting bribes do not ever say
that they have accepted such bribe as these are an illegal and unethical for the benefit to
oneself. Accepting gifts is a part where someone is accepting a favour from another and can
further create the thinking of too much influence3. A gift is a thing given happily having no
hopes of returns, and a bribe is something offered in the expectation of benefit. However;
accepting the gift of a free family trip to Los Angeles might be a severe business breach or
contravene to ethics, or maybe a law violation. Hence, it is illegal to accept bribes or
invitations like free family trip Los as the intent is to buy favour.
Advantages and disadvantages of employee code of conduct
In general, code of ethics is good for Practical Solutions Ltd, as it establishes standards and
interest for managers while ensuring viable and feasible terms in professional conduct. Code
of ethics also creates a process of discipline easier when there is the emergence of unethical
conduct4. Making use of code constructs a professional rooftop, ethical and positive working
environment, however ignoring it can lead to distrust and contradiction. Employees could
abuse codes when they apply it to involve grudges and private agendas like condemning
subordinates they dislike of working against the code.
Employees could do abuse of code by condemning employees failing to the meet the
standards regarding permanence measures, even if it is appropriately complied by employees.
Integration and values must be boosted by the cited code. Code of ethics is not a
comprehensive regulatory standard. It does not even describe the needs to come up to an
ethical conclusion. In case employees are not known to this limitation, they consider that
there is authenticity in the values and standards because it is not defined by the code. Self-
awareness and training programs must be held ensuring that queries must be put if any of the
employees are unaware or unclear of the code of ethics.
Factors to be considered in developing employee code of conduct
3 Oladinrin, Olugbenga T., and Christabel MF Ho. "Critical enablers for codes of ethics implementation in construction
organizations." Journal of Management in Engineering 32.1 (2015): 04015023.
4 Psaros, Jim, and Michael Seamer. "Ranking Corporate Governance of Australia's Top Companies: A Decade
On." Australian Accounting Review 25.4 (2015): 405-412.

Practical Solution Ltd should consider following aspects for the development of their code of
ethics; first is values that mean the performance of the company in a daily basis, the major
aim of the code of ethics to ensure clear and definite value regarding all interaction, activities
and operations of the business. Next are principles, which are a support pillar for the values
of business and are required to be followed by each and every member of the organization.
Management support of principles and values must also comply in the code of ethics. One
other significant component is the responsibility and duty to maintain the code of ethics that
means meeting the terms of code ethical and authentically. Last is compliance with the rules
and regulations in the daily operations of the business.
PART C.
Question 10.325
Profit in existing circumstance
Selling price $60
Less: Variable manufacturing cost $28
Less: Variable marketing and distribution
costs
$12
Contribution $20
=35000 units *$20-$490,000
=$210000
Profit if proposal is accepted
Selling price $60
Less: Variable manufacturing cost $28
5 Birt, Jacqueline, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver. Accounting: Business
reporting for decision making including iStudy, 5th Edition. John Wiley & Sons Australia, 2014

Less: Variable marketing and distribution
costs
$16
Contribution $16
=35000 units*$16-$410,000
=$150000
Units to be sold to recover same profit
Contribution margin has been reduced due to increased variable costs, and same is $16
To achieve same profit as 2015
= ($410,000+$210000)/$16
=38750 units
Recommendations
The proposed offer should not be accepted in short term as it will make a significant
reduction in profits.

REFERENCES
Birt, Jacqueline, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver. Accounting:
Business reporting for decision making including iStudy, 5th Edition. John Wiley & Sons
Australia, 2014
Hung, Wei-Ting, Jui-Kuo Shang, and Fei-Ching Wang. "Exploring the Determinants of Hotel
Occupancy Rate: A Dynamic Panel Data Approach." Abstract of Economic, Finance and
Management Outlook 3 (2015): 1-4.
Oladinrin, Olugbenga T., and Christabel MF Ho. "Critical enablers for codes of ethics
implementation in construction organizations." Journal of Management in Engineering 32.1
(2015): 04015023.
Psaros, Jim, and Michael Seamer. "Ranking Corporate Governance of Australia's Top
Companies: A Decade On." Australian Accounting Review 25.4 (2015): 405-412.