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Hi
I’m copying. statement from the question.
” It was found that a senior manager at factory site 1 has been delaying invoicing for completed orders in order to ensure that profit targets are met in both the current and the next accounting period”.
Does it mean that the manger is delaying invoices so that when a certain profit target is achieved for the current year he’d stop there and from there on add the revenue generated from the current periods sales to the next year pretending as if those are this years ( next years) sales??
Yes. Sometimes people want to postpone current profits. For example, to reduce tax arising or, as here, to avoid a shortfall in profits in the following period. That way it might be possible to avoid awkward adverse variances in both periods.
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