Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.38ACT
1.
To determine
To-identify: Whether such behaviour is common at other companies or not.
2.
To determine
To-identify: Importance of “tone at the top”.
3.
To determine
To-identify: If you would just follow along the leadership or have the courage to act as a whistle-blower.
4.
To determine
To-identify: How people can justify their unethical behaviour.
5.
To determine
To-discuss: If people stop thinking about consequences of their actions on others or do they just do their job.
6.
To determine
To-discuss: Why do people follow superior’s directive despite the fact that they will gain only a little.
7.
To determine
To-discuss: Whether people weigh the potential costs of acting unethically with the potential gains or not.
8.
To determine
To-discuss: Impact of this movie on your conduct as an employee or owner.
9.
To determine
To-discuss: Why every employee and manager should know how their company make money.
10.
To determine
To-discuss: In the light of mark-to-market accounting discuss the reason for principle of conservatism.
11.
To determine
To-discuss: Employees of Enron end up losing their retirement fund.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Identifying ethical standards
The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) are violated in each situation?
a. You tell your brother that your company will report earnings significantly above financial analysts’ estimates.
b. You see others take home office supplies for personal use. As an intern, you do the same thing, assuming that this is a “perk.”
c. At a company-paid conference on e-commerce, you skip the afternoon session and go sightseeing.
d. You failed to read the detailed specifications of a new accounting software package that you asked your company to purchase. After it is installed, you are surprised that it is incompatible with some of your company’s older accounting software.
e. You do not provide top management with the detailed job descriptions they requested…
Identifying ethical standards
The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) are violated in each situation?
You tell your brother that your company will report earnings significantly above financial analysts’ estimates.
You see others take home office supplies for personal use. As an intern, you do the same thing, assuming that this is a “perk.”
At a company-paid conference on e-commerce, you skip the afternoon session and go sightseeing.
You failed to read the detailed specifications of a new accounting software package that you asked your company to purchase. After it is installed, you are surprised that it is incompatible with some of your company’s older accounting software.
You do not provide top management with the detailed job descriptions they requested because you fear…
1. Do you think that financial managers should be held to a higher standard of ethical behavior?
2. In the video on ethics and my article from the Conway Daily Sun, there were several examples of unethical behavior, Please discuss a real life example of unethical behavior either from your personal experience or from the news. What do you think can be done to change the unethical behavior, or do you think it can't be stopped?
Chapter 1 Solutions
Managerial Accounting (5th Edition)
Ch. 1 - (Learning Objective 1) Which of the following...Ch. 1 - (Learning Objective 2) Managerial accounting...Ch. 1 - (Learning Objective 3) Which of the following...Ch. 1 - (Learning Objective 3) Of the following skills,...Ch. 1 - (Learning Objective 4) Which of the following...Ch. 1 - Prob. 6QCCh. 1 - Prob. 7QCCh. 1 - Prob. 8QCCh. 1 - (Learning Objective 5) Which of the following is...Ch. 1 - (Learning Objective 5) All of the following are...
Ch. 1 - Managers responsibilities (Learning Objective 1)...Ch. 1 - Contrast managerial and financial accounting...Ch. 1 - Prob. 1.3SECh. 1 - Prob. 1.4SECh. 1 - Prob. 1.5SECh. 1 - Prob. 1.6SECh. 1 - Violations of ethical standards (Learning...Ch. 1 - Identify current competitive tools (Learning...Ch. 1 - Identify ethical standards violated (Learning...Ch. 1 - Define key terms (Learning Objectives 1, 2, 3, 4,...Ch. 1 - Define key terms (Learning Objectives 1 2)...Ch. 1 - Prob. 1.12AECh. 1 - Identify users of accounting information (Learning...Ch. 1 - Classify ethical responsibilities (Learning...Ch. 1 - Equipment purchase cost-benefit analysis (Learning...Ch. 1 - Lean production cost-benefit analysis (Learning...Ch. 1 - Identify sustainability efforts as impacting...Ch. 1 - Prob. 1.18BECh. 1 - Prob. 1.19BECh. 1 - Identify users of accounting information (Learning...Ch. 1 - Classify ethical responsibilities (Learning...Ch. 1 - Equipment purchase cost-benefit analysis (Learning...Ch. 1 - Lean production cost-benefit analysis (Learning...Ch. 1 - Prob. 1.24BECh. 1 - Management processes and accounting information...Ch. 1 - Ethical dilemmas (Learning Objective 4) Barb Perot...Ch. 1 - ERP cost-benefit analysis (Learning Objective 5)...Ch. 1 - Online order system cost-benefit analysis...Ch. 1 - Continuation of P1-28A: revised estimates...Ch. 1 - Management processes and accounting information...Ch. 1 - Ethical dilemmas (Learning Objective 4) ETHICS...Ch. 1 - ERP cost-benefit analysis (Learning Objective 5)...Ch. 1 - Online order system cost-benefit analysis...Ch. 1 - Continuation of P1-33B: revised estimates...Ch. 1 - Discuss how managerial accounting can be used at...Ch. 1 - Discussion Questions 1. What are the three main...Ch. 1 - Prob. 1.37ACTCh. 1 - Prob. 1.38ACTCh. 1 - Ethics and casual conversations (Learning...Ch. 1 - Using managerial accounting information to manage...
Knowledge Booster
Similar questions
- A written code of ethics for a business would be most helpful to company employees when identifying ethical and unethical situations. evaluating alternative solutions to an unethical situation. identifying stakeholders in a business decision that requires ethical decision-making. O weighing the impact of business decisions on each company department.arrow_forwardDiscussion Questions: 1. Why did the strategic plans adopted by companies like Level 3, Global Crossing, and 360 Networks fail? 2. The managers who ran these companies were smart, successful individuals, as were many of the investors who put money into these businesses. How could so many smart people have been so wrong? 3. What specific decision-making biases do you think were at work in this industry during the late 1990s and early 2000s? 4. What could the managers running these companies have done differently that might have led to a different outcome?arrow_forwardIssue: In the post-Enron environment, and with the enactment of the Sarbanes-Oxley legislation, many firms are proactively portraying themselves as being “ethical.” Ethical behavior is, for example, part of the Corporate Social Responsibility movement. This behavior includes many dimensions, from the ethical treatment of employees and the environment, to ethical financial reporting. Academic research has found a positive correlation between a firm’s reputation and its financial performance. Questions to be Answered: Do you feel that strong ethics makes good business sense? Why do you think that there is a positive correlation between ethical behavior and successful corporate financial performance?arrow_forward
- Discussion points:As a plant employee, what is your responsibility to report your findings to superiors?Should you attempt to determine if the redundancy is justified? Explain.What is your responsibility to the employees whose jobs will likely be lost because of your report?What facts should you consider before making your decision to report or not? (Chapter 17 Ethics Challenge BTN 17-3, Financial & Managerial Accounting: Information for Decisions; Wild, Shaw, and Chiapetta, 7th edition, McGraw-Hill ) I do not really understand this at all. Do you have access to this course material and could help me learn this so i know?arrow_forward4 Ethical Challenge One of the most complex ethical challenges facing for-profit organizations today is balancing their goal of being socially responsible with their obligation to shareholders to earn a profit. Firms generally hire executives to increase profits. No matter how much good a firm does in its community, if it doesn’t have a healthy bottom line, the executive may not be seen as a success. This is not unlike a college football coach who makes sure his players graduate every year, but consistently has a losing record. Odds are he won’t remain the coach very long, even though he does a number of socially responsible things. Executives at privately held companies have the right to make socially responsible decisions that might sacrifice revenue. Executives at publicly held companies have to answer to their shareholders, who expect profits and share prices to grow. Marketing executives at public companies frequently face situations that force them to choose between responsible…arrow_forwardQuestion 3: Select a company of your choice that applies employee motivation scheme, start by briefly introduction of the chosen company, and describe how they motivate employees, what kind of moral boosters used, their reward/punishment system, and ways to retain good employees. the chosen company (Starbucks)arrow_forward
- Ethics Codes help companies to keep a standardized way to take decisions else the decision can be biased. Unethical behaviors can damage the reputation of the company. Also if companies do not take strong measures against these then these can have a negative impact on others. The public or other stakeholders' interest can be subdued by personal interest. The impact of unethical behavior can have a long-term effect on any company's operation. Saint Leo's core values are Excellence, Community, Respect, Personal Development, Responsible Stewardship, and Integrity. Unethical behavior does not comply with any of it.arrow_forwardWhat is the best strategy to improve U.S. business ethics? Multiple Choice Ethics must be taught in every business school around the globe. Congress must pass an ethics bill. Company leaders should adopt and support a corporate code of ethics. A company's suppliers must be thoroughly Investigated for ethical violations.arrow_forwardRefering to case study 2 Fortunesareus Ethical Scenario. How can these below question be addressed. 1. What are the readily identifiable ethical issues for your decision? 2. Who are the key parties who can influence, or will be affected by, your decision? 3. What fundamental ethical principles for accountants are most applicable and is there an apparent conflict between them? 4. What would you do?arrow_forward
- Question 3: Corporate Governance & Ethics (b) For each of the following ethical situations consider the fundamental principles of professional behaviour and: - identify the fundamental principle at threat, - identify the threat to the fundamental principle - discuss how the accountant involved should resolve the situation (i) You have been employed as a graduate accountant in a listed company and have been asked to complete a business report for the group. Your report must be completed by the tomorrow but vital statistics essential for the report will not be available for another three days. Your immediate supervisor has made it clear you will be severely reprimanded if the work is not completed on time. Answer space for question 3(b)(i) Fundamental principle: Threat: Resolution: (ii) At a party, an accountant speaks to another accountant, a person she has met for the first time, and says that she is amazed at the loss of her employer. She mentions the name of the…arrow_forwardAs future professional accountants, what is your role in promoting and achieving sustainability and to sustainability reporting while describing the importance of corporate governance and board of directors' function. In relation What will you do if you face an ethical dilemma, and must compromise your values?arrow_forwardManagers of corporations need to act in an ethical manner O because ethical behavior is its own justification. O because a business must be trusted by investors, customer and the public if it is to succeed. O because business managers must answer to a higher authority. O because ethics violations will be punished by the law.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage