Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 1 - The Manager and Management Accounting - Assignment Material - Problems - Page 27: 1-35(2)

Answer

Acceptable Actions- Selling the new printing equipment and replacing it with discarded equipment; Only acceptable if the discarded equipment meet safety standards. Non Acceptable Action- Rest of the actions are unacceptable as it violates the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management", because of potential manipulation in revenue, financial reports, statement, decision making.

Work Step by Step

Acceptable Actions- Selling the new printing equipment and replacing it with discarded equipment; Only acceptable if the discarded equipment meet safety standards. Non Acceptable Action- Rest of the actions are unacceptable as it violates the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management", because of potential manipulation in revenue, financial reports, statement, decision making.
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