91影视

Cassidy Manning is assistant controller at LeMar Packaging, Inc., a manufacturer of cardboard boxes and other packaging materials. Manning has just returned from a packaging industry conference on activity-based costing. She realizes that ABC may help LeMar meet its goal of reducing costs by 5% over each of the next three years.

LeMar Packaging鈥檚 Order Department is a likely candidate for ABC. While orders are entered into a computer that updates the accounting records, clerks manually check customers鈥� credit history and hand-deliver orders to shipping. This process occurs whether the sales order is for a dozen specialty boxes worth \(80 or 10,000 basic boxes worth \)8,000.

Manning believes that identifying the cost of processing a sales order would justify (1) further computerization of the order process and (2) changing the way the company processes small orders. However, the significant cost savings would arise from elimination of two positions in the Order Department. The company鈥檚 sales order clerks have been with the company many years. Manning is uncomfortable with the prospect of proposing a change that will likely result in terminating these employees.

Use the IMA鈥檚 ethical standards (see Chapter 16) to consider Manning鈥檚 responsibility when cost savings come at the expense of employees鈥� jobs.

Step by step solution

01

Definition of Ethics

Ethics are defined as the rules that the business organization ought to follow. In a business, organizational ethics are a set of principles that are expected to be followed by every person involved in the business.

02

Responsibilities when cost savings come at the expense of employees’ job

• Professional expertise should be maintained by all the members of the organization.
• They should never stop learning new skills and gaining knowledge
• Any type of confidential information should not be used by the member for any illegal purposes.
• The members should not get involved in any activity which might discredit their profession.

Unlock Step-by-Step Solutions & Ace Your Exams!

• Full Textbook Solutions

  Get detailed explanations and key concepts

• Unlimited Al creation

  Al flashcards, explanations, exams and more...

• Ads-free access

  To over 500 millions flashcards

• Money-back guarantee

  We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!