Bob Neal and Jon Smelky own a large cabinet-making company in Alabama.Their CPA advised them that they needed to develop another source of income as well as increase the efficiency of the organization if they wanted to continue making a profit.Neal's wife overheard this conversation and suggested the men do something with the wood wastes that the cabinet-making process produces.Shortly after Neal attended a trade show where he learned that the company's discarded wood slabs could be used to build wooden pallets.The company would need to invest about $45,000 as startup costs.Meanwhile,Smelky investigated the possibility of turning their wood scraps into mulch and selling it to a gardening supply wholesaler.Costs for this project were estimated at about $33,000.Neal and Smelky met with their three crew supervisors to see which method they should adopt.The crew supervisors voted for pallet making.Neal and Smelky began looking for a supplier.
-What was the role of the company's CPA in the decision to buy the pallet-making equipment?

Question

Quizplus · Accepted Answer

The CPA initiated the process by advising the need for another source of income and increased efficiency, and controlled the decision-making process by highlighting the financial necessity, but did not directly decide on the pallet-making equipment or control access to information (gatekeeper role) or use the equipment (user role).

Bob Neal and Jon Smelky Own a Large Cabinet-Making Company