Stellar Packaging Products uses absorption costing to compute additional compensation

| June 11, 2016

Stellar Packaging Products uses absorption costing to compute additional compensation eligibility for managers. In December, Stellar Packaging Products’ controller, Robin Simmons, noted that a considerable production overrun was experienced, resulting in increased ending inventories for its major customer, Estrella Coffee Company. Simmons approached Frank Moses, the production manager, regarding these facts. Moses indicated that indeed, the production overrun was deliberate and completed in order that more overhead application would occur in December, and “everyone would make their year-end bonus.”

Would the situation have changed if the company used variable costing as a basis of additional compensation? Why or why not?Question
Once you have established the research question, reviewed the existing literature on your topic and chosen a research methodology, you will be ready to engage in the data collection phase of the research process. Last week, you explored how methodologies help to guide and frame your research. This week, you are looking closely at the methods you will use to collect and analyse the data that will address your research question.
Your assignment for this week is to complete the first draft of the methodology section of your Proposal (Section 3). Please indicate which methodology (such as ethnography, survey research, action research) you have chosen to use for your dissertation research, and discuss how it is consistent with your epistemological stance.
Describe the data collection method(s) you will use (such as questionnaire, interviews, focus groups), and justify how these will be sufficient to answer your research question. Include as much detail as you can about your participants and how they will be chosen. Briefly describe how you will analyse the data collected and the tools needed for a proper analysis based on your chosen method.
These methods can, and will, change as you negotiate your access; we are interested at this stage to see how you are connecting your aim and research questions, your understanding of what is written already on the topic (preliminary literature review), and the methods you will use to collect or generate data.
Finally, describe how you will address the political and ethical challenges that may arise as you conduct your research.

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