Discussing the ethical dilemma

Reference no: EM13486437

Complete a 1-2 page paper discussing the following ethical dilemma.

The budget uses standards that are developed by management. These standards determine if a product is being produced according to the business plan. If the product is using more materials than planned, it will cause net income to decrease from the planned income. If labor hours being used are more but the budgeted rate is less than planned, the net income could increase from the planned income. Shelly is an accountant who determines the standards to be used for materials and labor. Shelly feels she understands the payroll rates much better than the payroll department. She has set a labor rate less than what has been suggested by the payroll department. Her attitude is that the skill of the worker should be less and she is trying to force management to see her point of view. At the end of the month, the total labor costs have a favorable variance. The labor rate is the reason for the variance. Is Shelly unethical in her actions? What could happen because of her actions?

Reference no: EM13486437

Questions Cloud

Determine the carnot efficiency of this engine : A heat engine operates between a hot resrvoir at 1500k and a cold reservoir at 500k. Determine the Carnot efficiency of this engine

Kolb company prepared its income statements for the current : Kolb Company prepared its income statements for the current year using three alternative cost accounting systems

Flowchart of a client''s accounting system is a diagramma : The flowchart of a client's accounting system is a diagrammatic representation that depicts

Writing an innovative change management plan : The Change Management proposal should be a structured report style document, with clear front page and content page with sub-headings as required outlining the change management proposal based on your learnings so far in the previous modules.

Discussing the ethical dilemma : Discussing the following ethical dilemma.

Describe what types of internal controls will be designed : Describe how the Internet/intranet/e-commerce will be integrated into the business, as well as the benefits that these technologies would bring to the business.

Explain iron-carbon allow that has a minimum hardness : It is desired to produce an iron-carbon allow that has a minimum hardness of 200 HB and a minimum ductility of 35% RA. Is such an ally possible? If so what its composition and microstructure? If this is not possible explain why.

What is the rms speed of the atoms in the gas : a gas at p=40kpa and T= 310K hass a mass density of 8.44*10^-2kg/m3, what is the rms speed of the atoms in the gas

What is the oscillators maximum speed : A 140g oscillator has a speed of 90.5cm/s when its displacement is 1.70cm and 55.0cm/s when its displacement is 5.20cmcm. What is the oscillators maximum speed

User Account

All Pages