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: 1-36(1)

Answer

Acceptable Actions- Make deep cuts in pricing through the end of the year; only acceptable if it align's to current market value and company goals, Sell off distribution equipment prior to year-end; same reason as above. Unacceptable Actions- Rest of the options are unacceptable according to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management" as it involves potential manipulative practices which will result in fake financial reports, income and statements.

Work Step by Step

Acceptable Actions- Make deep cuts in pricing through the end of the year; only acceptable if it align's to current market value and company goals, Sell off distribution equipment prior to year-end; same reason as above. Unacceptable Actions- Rest of the options are unacceptable according to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management" as it involves potential manipulative practices which will result in fake financial reports, income and statements.
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