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Read Ethical Issue 23-1 and 23-2 on page 1149. Write a 500 word report answering the following questions:

  1. Use the IMA’s Ethical Guidelinesto identify the ethical dilemma in each situation hosted by www.imanet.org.
  2. Identify the relevant factors in each situation and suggest what lane should be recommended to the controller.

Prepare this assignment in Microsoft Word, using Times New Roman 12-point font, and double spacing. Use proper spelling, grammar, and punctuation. Submit to the instructor via Dropbox "LP9.2 Assignment".

 

 

Ethical Issue 23-1:

Lane has been approached by Casey Henderson, a former colleague who worked with Lane when they were both employed by a public accounting firm. Henderson has recently started his own firm, Henderson Benchmarking Associates, which collects and sells data on industry benchmarks. He offers to provide Lane with benchmarks for the outdoor furniture industry free of charge if she will provide him with the last three years of Outdoor Livng's standard and actual costs. Henderson explains that this is how the obtains most of his firm's benchmarking data. Lane always has a difficult time with the standard-setting process and believes that the benchmark data would be very useful.

 

Ethical Issue 23-2:

Outdoor Living's management is starting a continuous improvement policy that requires a 10% reduction in standard costs each year for the next three years. Dan Jacobs, manufacturing foreman of the Teak furniture line, asks Lane to set loose standard costs this year before the continuous improvement policy is implemented. Jacobs argues tha there is no other way to meet the tightening standards while maintaining the high quality of the Teak line.

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